Car Finance

Harveymt

Bankrupt in Jan 2018, discharged Jan 2019. Should fall off my file in Jan 2025. Debts were from crash in 2007, family building company went to the wall. I was never that annoyed by letters coming in that was all credit card companies. The big money was owed from the business to the bank and they never said much about it. Got a new job and career and got to the point where I was putting myself in a position to do well but still had this debt hanging over me so went bankrupt. Doing ok now income wise so all good.

I've been driving the same car the whole time, it's 20 years old now. It's now at the point were it's going to cost more than it's actually worth to get through the next MOT. MOT runs till next March.

I've been looking at some leasing deals for new cars. That would involve a credit search. My credit is all tidied up. For some reason my Experian and Equifax don't mention the BR but it's there on Clearscore. As an aside that always makes me laugh, Clearscore tells me here's things you're doing well, one thing you can improve on, try not to have any more bankruptcies. 

So my question is, if I apply for car leasing finance and get refused, is that a bad thing that will show up on my file?

If so, I can just hope my car lasts till March, then buy a cheap runaround with 12months MOT. That would take past Jan 2025 when my BR falls off my record and I should presumably be fine to get finance.

Thoughts?

MorningcoffeeIV

If you're declined, it's simply a search on your file(s).

prettyandfluffy

If you don't ask/apply, you'll never know.  You may be offered a less than favourable interest rate but in that eventuality you can choose whether or not to accept the offer.

fatbelly

The entry drops off your file in Jan 2024. It only goes beyond that if you remain permanently undischarged

Harveymt

fatbelly said:

The entry drops off your file in Jan 2024. It only goes beyond that if you remain permanently undischarged

Are you sure? I was always under the impression it was from date of discharge?

I spoke to a mortgage advisor I know who said it was from date of discharge.

I guess I'll find out in a few months.

luvchocolate

It's definitely 6 yrs from bankruptcy date 

fatbelly

Don't take debt advice from a mortgage adviser

tony_cluedo

https://www.equifax.com/personal/education/credit/report/articles/-/learn/how-long-does-information-stay-on-credit-report/#:~:text=Generally speaking, negative information such,reports for approximately seven years.

sourcrates

tony_cluedo said:

https://www.equifax.com/personal/education/credit/report/articles/-/learn/how-long-does-information-stay-on-credit-report/#:~:text=Generally speaking, negative information such,reports for approximately seven years.

That is only relevant to the United States, not the UK.

The date of your bankruptcy is the date the 6 year clock starts ticking down, not the date of discharge.

fatbelly

tony_cluedo said:

https://www.equifax.com/personal/education/credit/report/articles/-/learn/how-long-does-information-stay-on-credit-report/#:~:text=Generally speaking, negative information such,reports for approximately seven years.

Pretty sure the op is in the uk, the multiple mention of MOT is a giveaway.

Try

https://www.equifax.co.uk/resources/debt-management/how-bankruptcy-affects-your-credit-score.html

tony_cluedo

Caught out by .co.uk and .com!

Good to know. Looking forward to the February 24 report now.

What about IVAs? Is that 6 years from date it was agreed? Or date it was completed?