Date of 'bad event' on credit file

Bootlegyoyo

Hello all

I have a question about the date a 'bad event' is registered on someone's credit file.  The reason I say 'bad event' is that I'm not clear which event I should refer to, but what I mean is the event that is marked on the credit file, has a hugely negative impact on the credit score and makes it extremely difficult or impossible for the person to get credit for the next 6 years.

Scenario: someone stops paying their mortgage, goes into arrears and within a couple of months voluntarily goes into bankruptcy.  They move out of the property at the time of the bankruptcy, but it is not repossessed for another 5 years.  

What is the 'bad event' and at what point is it recorded on the credit file?  I'm not worried about the couple of months between missing the first payment and the bankruptcy, but the 5 years until the repossession. Could there be multiple 'bad events'?  Clearly this is could be hugely important to this person obtaining credit over the next 11 years.

Thanks
Bootlegyoyo

fatbelly

Bankruptcy creates its own mark which lasts six years and all the debts included in it must have a default date that matches or predates the bankruptcy date.

Do you have a non-theoretical question? What are you planning to do?

Bootlegyoyo

fatbelly said:

Bankruptcy creates its own mark which lasts six years and all the debts included in it must have a default date that matches or predates the bankruptcy date.

Do you have a non-theoretical question? What are you planning to do?

Thanks very much for the response.  Could the repossession itself count as a default, even though it happened 5 years after the payments stopped being made?  And if so, would that start the 6 year clock ticking as at the date of repossession, rather than the date of going into arrears / declaration of bankruptcy?

fatbelly

Repossession doesn't appear on a credit file. The mortgage does, because it's a loan.