Joint loan still causing problems

allthe7s

I went bankrupt in early 2020 as my ex had left me with a lot of debt in my name and we had a joint unsecured loan which was a consolidation of his debt before we met.

This is still on my credit file which was an annoyance as it made it look like I had a lot of credit however as it was being paid by my ex it didn't really matter. 

Now however he has defaulted on the loan so my credit file is showing missed payments and a default for this loan that was covered in my bankruptcy and should no longer be affecting me as its solely his loan now.

What can I do? I managed to get a mortgage with my new husband and was nicely rebuilding my credit file and this has ruined it again and will affect me when I remortgage next year! 

RAS

The most basic thing is that you can switch to another offer with your existing mortgage provider without a credit check.

Others know more but you probably need to do another bankruptcy credit reference clean up to get the default date back dated to your bankruptcy date. See the stickie.

sourcrates

Bankruptcy releases you from liability for the debt, but the default will show on your file for 6 years from the date of default, or from the date of your bankruptcy, whichever was the earliest.

If the default date is recorded as being after the date of your bankruptcy, then as RAS suggests, you need to do a credit file clean up and get the date amended.

allthe7s

But it's only just defaulted this month as my ex has kept it up to date until 3 months ago. 

RAS

allthe7s said:

But it's only just defaulted this month as my ex has kept it up to date until 3 months ago. 

So you need to do what both sourcrates and I advise.

Do a bankruptcy clean up as per the instructions in the sticky and the default will have to be backdated to your bankruptcy.

allthe7s

Thank you, I'll do that this week

Gavinalt

allthe7s said:

I went bankrupt in early 2020 as my ex had left me with a lot of debt in my name and we had a joint unsecured loan which was a consolidation of his debt before we met.

This is still on my credit file which was an annoyance as it made it look like I had a lot of credit however as it was being paid by my ex it didn't really matter. 

Now however he has defaulted on the loan so my credit file is showing missed payments and a default for this loan that was covered in my bankruptcy and should no longer be affecting me as its solely his loan now.

What can I do? I managed to get a mortgage with my new husband and was nicely rebuilding my credit file and this has ruined it again and will affect me when I remortgage next year! 

First, take a close look at the documents related to your bankruptcy discharge to make sure the loan was really discharged. Then, get in touch with the credit reporting agencies and challenge the negative info on your credit report. Show them the right documents to prove that the loan shouldn't be impacting your credit anymore. Also, let the lender know about the missed payments and default they're reporting, giving them the necessary details and asking for an update to fix the loan's status. If things get complicated, it's wise to seek legal advice for more help.

luvchocolate

Not sure you get any paperwork relating to discharge. 
I certainly didn't 

JCS1

Gavinalt said:

allthe7s said:

I went bankrupt in early 2020 as my ex had left me with a lot of debt in my name and we had a joint unsecured loan which was a consolidation of his debt before we met.

This is still on my credit file which was an annoyance as it made it look like I had a lot of credit however as it was being paid by my ex it didn't really matter. 

Now however he has defaulted on the loan so my credit file is showing missed payments and a default for this loan that was covered in my bankruptcy and should no longer be affecting me as its solely his loan now.

What can I do? I managed to get a mortgage with my new husband and was nicely rebuilding my credit file and this has ruined it again and will affect me when I remortgage next year! 

First, take a close look at the documents related to your bankruptcy discharge to make sure the loan was really discharged. Then, get in touch with the credit reporting agencies and challenge the negative info on your credit report. Show them the right documents to prove that the loan shouldn't be impacting your credit anymore. Also, let the lender know about the missed payments and default they're reporting, giving them the necessary details and asking for an update to fix the loan's status. If things get complicated, it's wise to seek legal advice for more help.

There is no paperwork for discharge which would show the loan, but regardless of this   bankruptcy would include all unsecured debts (with a few exceptions)

allthe7s

Still not had a response 3 weeks on, obviously the letter does advise I would like a response within 28 days. Its just dragging. 

It was definitely included as part of my bankruptcy and everything just in my name was defaulted correctly, its just this join loan that has been causing me issues. 

allthe7s

RAS said:

The most basic thing is that you can switch to another offer with your existing mortgage provider without a credit check.

Others know more but you probably need to do another bankruptcy credit reference clean up to get the default date back dated to your bankruptcy date. See the stickie.

Unfortunately staying with my current provider is going to be unaffordable as they are a poor-credit lender and they only offer the initial product I'm on and then the other mortgage they offer was a few full % higher than my already high-ish rate so imagine that will be horrendously high by next year. When I asked my broker about this they said its because after the 2 years a lot more providers will accept me as closer to the 6 years since BR