Defaults and bankruptcy advice

Mungo458

I applied for bankruptcy in June 2012. I was discharged in June 2013.

On my credit file I have seen some of my debts showing as default up to June 2012 then no further entries, some are showing as default up to July 2013. These debts were dealt with by the bankruptcy.

I have been told that the default notices should only go up to the date of my bankruptcy .....but I am a bit confused.

Should they stop marking the account as in default from June 2012 or June 2013?

fermi

It is the initial "default date" that matters. The status history between that and being discharged doesn't matter as long as that actual first default date is on or before your BR date.

Mungo458

Still confused. The debt was settled by the bankruptcy. So the account should now show as settled but they are still updating my credit file saying the account is in default.

At what date should the account show as settled ...June 2012 the date I was in court or June 2013 when I was discharged?

simeyb

The trouble you have is that you did default on the accounts. That the matter has been settled by your BR and you no longer owe any money, the fact is you defaulted and the Default marker on your accounts is an accurate reflection of how your relationship with the lender broke down.

The Default markers will stay on your file for six years, during which time you will find it practically impossible to get new credit (which is probably a good thing) although it of course does impact if you were to want a new mortgage. There's no way you will be able to have them removed I'm afraid.

fermi

The account should show as defaulted on your BR date and settled on your discharge date. The default still stands, but it should now be marked as a settled default.

Status updates on a default are not new defaults each month. It is the original default date that matters. Only that.

The main cleanup sticky explains with examples.

jacobtheamish

On another note, make sure you get a copy of your discharge letter from the Official Receiver. Send copies of that to the companies involved.

All accounts should show as settled or satisfied, some banks will tell you only 'partially satisfied' but still have to mark it as satisfied.