Life after bankruptcy

Sillymummy86

First time posting her ... hello!

In 2022 I had to declare bankruptcy after my business failed.  I had personal loans and credit cards which I'd used for the business. 

I'm still so ashamed that I had to declare bankruptcy.  I did not have any ongoing payments to make as I was unemployed, with no chance of earning due to 18 month old twins, plus husbands earnings meaning my children would not be eligible for the 30 hours free.

So in September this year I will be 1 year discharged.  How long until my credit improves?  Is it 6 years?

Just to be clear, I in no way want any credit or debt ever again.  But declaring bankruptcy has effected my mental health and I'm constantly checking my credit rating to see if there has been any changes?  Even though I've been discharged, I'm still such a nervous wreck about it.

sourcrates

The bankruptcy, and associated defaults, will show on your credit file for a further 5 years from September.

After that all trace will be gone, the only place your bankruptcy ever existed will then be in the London Gazette, where it stays forever basically, but it is not publicly published, although it is searchable.

fatbelly

Really there's no need to be obsessively checking your credit files.

Certainly ignore any numerical score.

It's worth having a look before a major event like a mortgage application, and once a year just to see if anything false has been added.

If this is fuelling anxiety then you probably need to go cold turkey on it

Sillymummy86

Thanks,

I think I will stop checking.  I started going OTT as I am waiting for my creditors to part settle my accounts.  All bar 2 are still showing in default and the defaulted debt.

Sky sold one of my debts to a debt collector even though it was included in the bankruptcy, and that is what has set off my anxious behaviour.  I guess I'm worried the other debts will also still be sold as Sky didn't seem to adhere to my bankruptcy?

EssexHebridean

Absolutely nothing to be ashamed about either - what an incredibly brave thing to go ahead and take the action you knew you needed to in SPITE of feeling as though it was the last thing you wanted to do! Well done you - be proud of that decision making, not in any way feeling shame about it. 

I believe that if you do get contact on any debts from before your bankruptcy you just need to send a copy of the bankruptcy order? Either Sourcrates or fatbelly will be able to confirm on that I would think. 

As for the credit "score" - made up numbers, and nothing more. In fact, tell you what, I'll give you a credit score of 94730 right now. There you go. That random number I just plucked from the air means every bit as much as the numbers being given to you via Experian, Clearscore or whoever. You've got great advice above already about the need to check your credit files occasionally - but honestly, it really is nothing more than "occasionally" that is required. It's entirely understandable that you feel some anxiety around the situation allowing or what you've been through, but trying to remind yourself that defaults are just words on the page - and allowing that you're not after needing any credit applications, that makes them very unimportant words on the page, too. 

fatbelly

Yes, your bankruptcy is complete protection against debts that went in.

Better than that, it protects against any debt that predates the bankruptcy whether it went in or not.

And it protects against any debt that could have been crystallised before the bankruptcy date. I had a client once with a dodgy ppi reclaim firm who waited for the bankruptcy, then issued an invoice. Still covered.

sourcrates

It doesn't make any difference if the creditor/debt collector didn`t recognise the bankruptcy.

It`s recognised in the eyes of the law, and that is all that matters.