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Should CRA's/credit files be banned?

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  • DarkConvict
    DarkConvict Posts: 6,347 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    davidjwest wrote: »
    If my understanding is right and I'm sure someone will correct me if it's not:

    If you go bankrupt it is on your record for 1 year.

    If you go onto a DMP it remains for 6 years even if you've paid the debt off.

    Can't be right surely?

    Defaults last 6 years, and late payments last 3 years. These come from DMPs as they are informal and not court enforced.

    Bankruptcy lasts for 1 year (the restrictions of it that is), you make repayments towards the debt for 3 years standard and longer if you have broken certain rules. Your name is put in the london gazette forever, (people who went BR over 100 years ago can still be looked up).

    Bankruptcy does alot more short term damage than a DMP, but the key things with bankruptcy is do you have an assets at all, and will a bankruptcy make you unemployable. Some careers, positions, professional organisations, will not accept you if you have "ever" been made BR.

    Which route is best, depends on the persons circumstances.
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
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