Ask a StepChange (formerly CCCS) counsellor a bankruptcy question

paddyisis

I'm hoping someone can help... I was declared bankrupt in 2014 and discharged in 2015, I'm trying to clean up my credit file at the moment. My Equifax search shows no record of my bankruptcy although obviously still shows several defaulted accounts. I'm not sure whether this is correct or not and whether it is actually a good thing! ? I've contacted Equifax and they say they have checked with the insolvency service and they see no record of my bankruptcy - would this be because I've been discharged? They've told me to contact the insolvency service but I thought I'd ask here first.
Any help would be appreciated

Chris026

Can I go bankrupt?
Basically I have been really struggling with debt since being left with it all from my first divorce
Stupidly got married again and bought a guest house in joint names, she won the guest house in the divorce and I got all the associated debts apart from the mortgage.
I think bankruptcy is the best option for me as I am unemployed and 6 months behind on most payments.
My ex has been ordered to pay about 5 grand when I sign over the ownership of the hotel but I would have to stay on the mortgage till october so would still be eligible if she missed payments, which is obviously very risky for me
Could I file for bankruptcy now or could I hold off my debt collectors for another 8 months and go bankrupt once I have the money and the property is signed over to her?
I'm just thinking the complications come in when I need to go bankrupt but I'm still on a mortgage even though it has been awarded to someone else

StepChange_Kirsty

Hi Paddy,

Thanks for your post.

Usually when you’re made Bankrupt, a marker will be put on your credit report to show this and it will last for a period of six years. It does indeed sound odd that it is not showing on your Equifax report. Have you tried checking with the other credit reference agencies such as Experian and Call Credit to see if it shows with them?

You’re right that you won’t be showing on the individual insolvency register anymore as the entry will have been removed around three months from when you were discharged.

It’s hard to say whether is it a good thing or not, as I say it might be showing on your other credit reports and as you say, you still have the defaults.

Due to the defaults, it's already going to be more difficult for you to obtain further credit even just to repair your credit file. The defaults will automatically be removed after six years from the default date. What you need to make sure is that when the default is removed, the actual account listing is removed as well because the debts were written off in the Bankruptcy. If not, I would definitely recommend contacting the credit reference agencies with your Bankruptcy discharge certificate at that point.

If you’re intending to apply for further credit, many of the applications will ask if you’ve been made Bankrupt in the last six years. You must always be honest about this even if it is not showing on your credit report. As a result it is unlikely your eligibility will be much different whether the Bankruptcy is on your credit file or not.

If you’d like more information about the impact of different markers on your credit report I would suggest contacting the credit reference agencies; Experian, Call Credit and Equifax directly.

All the best

Kirsty

paddyisis wrote: »

I'm hoping someone can help... I was declared bankrupt in 2014 and discharged in 2015, I'm trying to clean up my credit file at the moment. My Equifax search shows no record of my bankruptcy although obviously still shows several defaulted accounts. I'm not sure whether this is correct or not and whether it is actually a good thing! ? I've contacted Equifax and they say they have checked with the insolvency service and they see no record of my bankruptcy - would this be because I've been discharged? They've told me to contact the insolvency service but I thought I'd ask here first.
Any help would be appreciated

StepChange_Kirsty

Hi Chris,

Thanks for your post.

Your situation does sound quite complicated at the moment and there are a number of different factors to consider before you make the decision to go Bankrupt.

The first factor is whether Bankruptcy is even the right option for you. We can provide you with free and impartial debt advice to help you establish this but to do this we’d need some further information from you. If you contact us we can help you to create a budget over the phone and you’ll speak to an experienced debt advisor who will work out if Bankruptcy would work for you or what other options might be more suitable for your individual circumstances.

In the situation we do suggest Bankruptcy; the debt advisor will give you the contact details for our Bankruptcy Support Team. The debt advisor’s in the Bankruptcy Support Team specialise in Bankruptcy and will be able to discuss in more detail if it is right to go Bankrupt now, or if it might be worth waiting until you’re removed from the mortgage.

I hope this makes sense and we hope to hear from you soon.

Kirsty

Chris026 wrote: »

Can I go bankrupt?
Basically I have been really struggling with debt since being left with it all from my first divorce
Stupidly got married again and bought a guest house in joint names, she won the guest house in the divorce and I got all the associated debts apart from the mortgage.
I think bankruptcy is the best option for me as I am unemployed and 6 months behind on most payments.
My ex has been ordered to pay about 5 grand when I sign over the ownership of the hotel but I would have to stay on the mortgage till october so would still be eligible if she missed payments, which is obviously very risky for me
Could I file for bankruptcy now or could I hold off my debt collectors for another 8 months and go bankrupt once I have the money and the property is signed over to her?
I'm just thinking the complications come in when I need to go bankrupt but I'm still on a mortgage even though it has been awarded to someone else

willunhappy

Hi here,s an odd one
, if you look at your noddle report. Since you logged on to them and told them where you have lived for 3 years and say more than one address and of course your current address can people get hold of you thought noddle for the debts?

will

Former_StepChange_Linsi

Hi Will

Thanks for your post and welcome to the forum.

Credit reports are private and you have to give permission for a search to be made. Permission is normally given as part of the application process when applying for credit such as a credit card, loan or overdraft.

If you’ve previously applied for credit and your application was successful the creditor may be able to access your credit report for the duration of the agreement. This would be included in the terms and conditions of the agreement.

If you have debts and have fallen behind with your payments then your creditors could take further action against you. They’re allowed to send any paperwork to your last known address, so it’s a good idea to make your creditors aware of your current address. This way you’ll be informed of any action they may be planning to take.

If you’re struggling to repay your debts we’ll be able to help and recommend the right debt solution for you. Here are our contact details.

If you have any more questions about your credit report there’s a frequently asked questions section on the Noddle website along with their contact details.

I hope this helps.

Linsi

willunhappy wrote: »

Hi here,s an odd one
, if you look at your noddle report. Since you logged on to them and told them where you have lived for 3 years and say more than one address and of course your current address can people get hold of you thought noddle for the debts?

will

willunhappy

hi linsi
thank you for the help. Just getting things sorted out and finding out where and with whom my debts are. What happens if i miss a debt does that get added to the BR or is it just tough.

will

StepChange_Kirsty

Hi Will,

Thanks for your post.

If a debt comes to light which was missed in error but was owed at the time of your bankruptcy order, this will still be included in your bankruptcy.

If you decide to go through bankruptcy, it would be your duty to make sure you disclose details of all of your debts to the Official Receiver (OR) to the best of your knowledge.

There are exceptions such as if the debt wouldn’t normally be included in bankruptcy or it was taken out after the date of the bankruptcy order. Our website gives further information about the types of debts which are included/ excluded in bankruptcy.

I hope this helps.

Kirsty

willunhappy wrote: »

hi linsi
thank you for the help. Just getting things sorted out and finding out where and with whom my debts are. What happens if i miss a debt does that get added to the BR or is it just tough.

will

Mayurua

Hi
I've read in several places that while preparing for bankruptcy I should hold enough cash back to cover me while bankruptcy goes through . At the same time I feel this could be against the rules is there a suggested amount that I am allowed to withdraw and keep to tide me over
Hope I've put this in right place mant thanks
Dave

StepChange_Allen

Mayurua wrote: »

Hi
I've read in several places that while preparing for bankruptcy I should hold enough cash back to cover me while bankruptcy goes through . At the same time I feel this could be against the rules is there a suggested amount that I am allowed to withdraw and keep to tide me over
Hope I've put this in right place mant thanks
Dave

Hi Dave

Welcome to the forum and thanks for your message.

We suggest that if your account is on credit, withdrawing the full balance of the account. If you're overdrawn, just withdraw enough to pay for essentials like food and travel to last a few days.

It's important to then list this amount of cash as cash in section 4 (assets) of the bankruptcy application.

I hope this helps.

Allen