Defaults after discharge?

Annie35

Hi so I was discharged in Jan but on checking my credit report yesterday it's still showing my mortgage as open & logging a default each month. Do I need to do anything about that & what do you suggest?

Thanks for any advice  

Fighter1986

Please read the thread on this forum titled "Credit File Cleanup Post Discharge".

You need to write to every lender included in your bankruptcy enclosing proof of BR and proof of discharge, asking they update your defaults to show as satisfied; reminding them that the default date must be no later than the date on which you were declared bankrupt and the satisfied date must be no later than the date on which you were discharged.

... However - you mention mortgage. What happened to the house? Voluntary repossession? When did you give it back, before or after declaring BR?

mwarby

logging a default every month - they're not, they're just reporting the account is still in default

assuming the default date is correct, the account will drop of after 6 years. Unfortunately until that point lenders can see yiu have defaulted on mortgage and been bankrupt, the status of default won't matter much. Other than being marked as satisfied it may be marked as partially satisfied(meaning they didn't get the full amount)

Annie35

Thanks ill have a look through the clean up info
so the default is normal then, should it still be showing as open with the outstanding figure? Shouldn't it be in the closed accounts section?

Also it doesn't record my card debt anywhere, it shows as only this 1 default - guessing that's not a problem & what's not recorded never happened

I gave up the property & it was sold before br. The default is showing the difference

mwarby

it should be closed with a zero balance, although the default balance will still be there in the history

Fighter1986

Annie35 said:

Thanks ill have a look through the clean up info
so the default is normal then, should it still be showing as open with the outstanding figure? Shouldn't it be in the closed accounts section?

Also it doesn't record my card debt anywhere, it shows as only this 1 default - guessing that's not a problem & what's not recorded never happened

I gave up the property & it was sold before br. The default is showing the difference

The default is a factual representation of the fact you broke the terms of the mortgage.

If the mortgage formed part of your bankruptcy estate, the default should be marked as satisfied as of the date you were discharged from your bankruptcy; as this would be a factual representation that the debt has been written off by way of an insolvency.

So the lender need to mark the account as partially satisfied with a £NIL balance as of the date on which you were discharged from your bankruptcy. 

Annie35

Thanks both.

So it's only on creditkarma it says mortgage open & £££ balance.

I've just done experian & Equifax and neither show ANY default credit accounts, open or closed? I guess it doesn't matter but why are they not listed when 2 closed current accounts are.. Oh well!

Annie35

Ok so I've raised a dispute with creditkarma/transunion & chose option : this default is settled & date of discharge.

Hope that was right, if not I'll try again in 28 days

Fighter1986

You need to write to the lender 
 

Annie35

Fighter1986 said:

You need to write to the lender 
 

Okay, using the template from clean up sticky I take it, ok I'll do that today thanks so much

Fighter1986

Annie35 said:

Fighter1986 said:

You need to write to the lender 
 

Okay, using the template from clean up sticky I take it, ok I'll do that today thanks so much

You're welcome, let us know how you get on