what happens after 6 years?

jal2009

Hello,

nearly six years ago I was in a financial (and personal) crisis and the unfortunate end result was that I filed for bankruptcy.

In the years since I have been really careful with money and rebuilt some of my credit score with the aid of some great support from an understanding bank manager (a rarity) who even granted me a small loan for emergency private dental work. As of next April 2010, six years will have passed since this happened and as far as I am aware this should mean that my credit rating will improve substantially. How does this work though - is it automatic or do I need to do anything?

My husband co-owns our flat and we would really like to be able to buy the other half and have scrimped to save enough for a deposit - I'm just hoping that the last 6 years of rehabilitating myself bith financially and personally will allow me to get on the ladder.

Any help or advice on this subject would be really gratefully received.

J

izools

The Court Order will automatically fall off your credit report six years from the date of bankruptcy.

On this date, there will no longer be any record with any credit reference agency of your ever having been bankrupt.

You do not need to do anything for this to happen, but I would advise waiting until the 1st of the following month before assuming that the judgement has dropped off your files.


QUESTION: Do you have any credit facilities at the moment? If your credit file is thin on the ground when you apply for the mortgage you may get turned away even without the bankruptcy on there. If you don't have any credit cards I would advise applying for an Aqua card and a Capital One Classic card. These are high interest cards so make sure you set up a direct debit for the full amount to be paid each month, just use them instead of your debit card from time to time, and this will help re-establish some credit history and build your score.

I was discharged from my bankruptcy only in March and I have an Aqua card and a Vanquis card, both paid in full each month, and my credit score seems to be improving by around 50 to 100 points each month. Ofcourse this score is merely a guide that I am heading in the right direction, and may not be the same kind of score a creditor gives me.

Have you checked your credit file lately?

fermi

Definitely check your credit files.

Many lenders don't set default dates correctly, meaning that those defaulted accounts stay for longer than the BR order itself, messing up your CRF for longer than they should.

See: Credit Reference File Clean Up Post Bankruptcy

izools

Ah yes of course!

I had to write to all of mine to get them marked as "Satisfied" after discharge, some of them still have the wrong date.