Bankruptcy - long-term effects?

Albuckj

I plan to go bankrupt, have read the information sheet on it, but it doesn't say what the long-term effects are, i.e. after 1yr.
Will I be able to get a mortgage as easily as a normal person?
Will I be able to get credit cards?
Other kind of loans...?

Any info much appreciated, can't seem to find anything on this!

Lizzibuff

My understanding of it - tho i maybe wrong and im sure more experienced people on here will be able to advise you - is that you can still get credit and a mortgage etc after the bankruptcy is discharged. However, chances are interest rates will be much higher.

fermi

The bankruptcy itself will stay on your Credit Reference Files for 6 years from the date of the bankruptcy order.

During this period it will be very very difficult to get normal unsecured credit. There are a number of card and loan providers who may entertain you, but it is not guaranteed and any interest rates are likely to be horrendous. Others may be able to post examples.

I'm told that mortgages are a bit different. From other posters experiences it seems most likely that your choice of provider will be much narrower, with interest rates and deposits required being much higher.

Plus with all the fuss about 'sub-prime' lending at the moment even the current products available may soon be narrowing.

plumduff-2

Mortgages - yes you can get - Pink Home Loans are one company I hear do tmortgages for BR - I will just confirm I do not have any links with then whatsoever.. just heard this from others..

Loans etc.. You will have problems whilst the BR is showing on the CRF.. Many people get the prepaid credit cards.. I htink a few companies are offering this now...

You do need to consider though, BR is a fresh start.. if you havent already gone BR yet, why are you thinking of future credit..? Are you sure you have learnt the lessons from the past.. Sorry if this sounds judgemental, it is not intended to.. I am just ensuring you understand why people go bR in the first place.. xxx

fiveyearplan

Does anyone know whether a parent's credit problems will affect a student applying for a student loan. My child should be going to university and I'm wondering if my credit problems will hinder him.

fermi

fiveyearplan wrote: »

Does anyone know whether a parent's credit problems will affect a student applying for a student loan. My child should be going to university and I'm wondering if my credit problems will hinder him.

I've seen people who are bankrupt themselves reporting that they have had no problem getting a loan from the SLC, so your child should definitly be OK.

They aren't loans in the normal sense of consumer credit anyway. They are funded by the government, and apart from being repayable are not much different to a grant.

That means that no credit checks are carried out, although there are stricter identity and anti-fraud checks now since there have been problems with fraudulent claims in the past.

rog2

fiveyearplan wrote: »

Does anyone know whether a parent's credit problems will affect a student applying for a student loan. My child should be going to university and I'm wondering if my credit problems will hinder him.

My daughter had no problems with her student loan, but we were refused LEA help.

fiveyearplan

That's a relief. Would hate to think that my recent problems would prevent him from going to university!

2003wastheyear

No he will be fine. I got a student loan after my BR. I now have a high rate credit card just to build up my credit again (has £20 on it and is kept at home to avoid temptation!). I would agree with other's comments though. You should not really be thinking of getting more credit for a long time! I can honestly say it feels good living within your means and not owing money to anyone. I got into trouble as I couldnt afford uni so hopefully your son will avoid those pitfuls. Good luck!

fiveyearplan

No, I'm not thinking of getting any other credit and my son won't be going to University for another 2 years, I just want to be sure that if I cannot come up with the money myself he could get a student loan. I'm looking forward to living a life without credit as I'm sure it does feel great to live within one's means!