Amount of creditors

brokemummy123

Hello,

Just a quick question. Is there any advantage to having fewer creditors rather than spreading out over more?

I currently owe £27,000 to Barclays, MBNA and Next but have credit room with Virgin and Lloyd’s.
When I apply for bankruptcy and come out the other end of the 6 years are they likely to refuse to come near me again? If so, is it better to minimise the risk by keeping the debt with fewer creditors?

Thank you in advance.

BoGoF

Ask yourself what you would do as a lender and someone wanted to borrow again after being previously made bankrupt.....

As MBNA is now owned by Lloyds banking group it does not really make any difference with regards those 2 cards.

terrence45

I've heard plenty of stories of discharged bankrupts opening bank accounts, getting loans, mortgages etc with people who were included on their bankruptcy. Of course, some companies may have a blacklist, but there are always others to choose from. I think your post-bankruptcy finances and credit record are more important.

debt_doctor

Hi,

There is no advantage to you from your suggestion. The information about your BR will be on all of your credit files for 6 years, not just available to those you borrowed from.
High interest credit (usually cap one, aqua, Luma, etc) will become available to you about 2 years past discharge from BR. If you use these successfully (pay in full each month to avoid interest) then the next worse card will be yours, and so on.

Obviously, getting back in to a lot of credit needs to be seriously thought about, but mending your credit rating to get a mobile phone contract or a DFS sofa might be perfectly reasonable.


DD