Bankruptcy restrictions order

Frontosa

Hi,

I'm currently under bankruptcy which finishes in 3 months. I also have a bankruptcy restriction order of 5 years.

My question is while the BRO is still running will that be penalising my credit rating as well? So after the BRO is finished in 5 years I will have another 6 years before my credit rating is normal? Or once the BRO is finished in 5 years that will almost be 6 years in total so my credit file will be returning so something of some what normal?

Thanks

JCS1

They run concurrently, so the BRO will drop off your file about the same time as the BR.

Frontosa

Thanks for the reply.

So will my credit rating start improving once the bankruptcy ends even though I will still be restricted? Just want to be able to start fresh in six years time.

Thanks

[Deleted User]

You may be able to "start improving" with the likes of Vanquis and Capital One credit cards after discharge, as per any other bankruptcy case. But if you're looking for loans/mortgages after say 3 or 4 years discharged (where bankrupts sometimes get some leeway), with an active BRO it'll be a lot harder based on what I've heard.

I'm 5 years since bankruptcy (4 discharged) and have a small overdraft from Lloyds - nothing else anywhere near prime will touch me, even though I've tried appealing declines on the basis that I work in finance.

I do have significant limits on Capital One, Aqua, Tesco Foundation etc, but don't expect anything near prime until next year when the BR record drops.

I imagine it'll be like it literally falls off a cliff... one day it was impossible, the next (day it's wiped from CRAs) pretty much everything will open up again.

Of course getting prime credit at 6 years does need some record of reasonable management in between (if file is blank when bankruptcy drops, you're just a high risk/thin file "normal" customer).

So essentially at 6 years it'll all drop off and your file will be clear - with the only entries being whatever credit you have managed to get in the meantime.

If you've built up enough, then won't have any problems you wouldn't have otherwise had. If you can't build anything up (if Cap1 etc won't lend due to BRO), then you'll just have to start the "rebuild" stage at year 6 rather than year 1/2/3

My only advise would be to check eligibility calculators etc once you're ready to look at maybe taking a small card out again. Keep your bank accounts/utilities etc in order. If you do happen to get a small sub-prime card before all the adverse drops, then see it as a bonus