Life After Bankruptcy What Happens

Ms-Money-Penny
Ms-Money-Penny Posts: 1,604 Forumite
in Debt-free wannabe
A friend of mine has a new partner he's a discharged bankrupt.
She has a good credit rating, what happens if they move in together. I know from reading the board that you are financially linked if you are at the same address.

Any advice appreciated as she is worried about her credit rating.

Comments

  • Xbigman
    Xbigman Posts: 3,884 Forumite
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    How long ago was he discharged? After 6 years your credit history is clear and there is only one issue left, mortgages. You will find it harder to get a mortgage but it can be done. Apart from that, 6 years after discharge you are back to normal.
    Regards



    X
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  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    Combo Breaker First Post
    If she does find herself associated to his record, then she can post a notice of correction on her file. However, they will only be associated if they have joint debt. And even then, it should be clear from the files that the date of the joint debt started after the date he was discharged.

    I'd suggest she has nothing to worry about :)
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • Ms-Money-Penny
    Ms-Money-Penny Posts: 1,604 Forumite
    Xbigman wrote:
    How long ago was he discharged? After 6 years your credit history is clear and there is only one issue left, mortgages. You will find it harder to get a mortgage but it can be done. Apart from that, 6 years after discharge you are back to normal.
    Regards



    X

    I think its been about 18 months
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    First Anniversary Combo Breaker
    Debt_Free_Chick wrote:
    If she does find herself associated to his record, then she can post a notice of correction on her file. However, they will only be associated if they have joint debt.
    Quite true, the referencing agencies can only infer a relationship though a joint financial agreement (bank account, mortgage, rent, loan etc). I'd suggest that they don't enter into any joint agreements.

    The legislation backing this was brought in to ensure personal credit ratings were more accurate and to comply with the Data Protection Act. Prior to this, you could be down-graded due to the record of previous occupiers and family members (eg 18 year old son/daughter running up huge mobile/cc bills). Now you only get dragged in if you have effectively acted as a guarantor. When I originally worked on this (1993) the agencies could infer a financial link if you were married, dunno if this has since changed.
  • idiot_3
    idiot_3 Posts: 136 Forumite
    no you cannot infer a link, unless it is a joint account - it is fairly obvious then.

    the thing for her to do, if she is concerned of course, is not necessarily a notice of correction. they should send a letter of disassociation to the cra. this will be displayed on the file with any credit search. the difference is that any possible creditor must read a noc, but does not have to act on it. with the notice of disassociation they must read it, and take it into account whne coming to a decision about whether to lend or not.

    hth.
  • cozzie
    cozzie Posts: 521 Forumite
    First Post First Anniversary Combo Breaker
    My partner is a discharged bancrupt and although we have no joint finances, my credit records still have me associated with him and vice versa, (presumably from the electoral register or something), which to my knowledge means that if either of us were to apply for credit then the creditor has the right to look at the "associated partner's" records when making their assesment.

    It doesn't seem to have affected my credit rating/worthiness but then I have never applied for anything over £500 as I would rather save, pay cash and save again by not paying interest.

    On the other hand, my partner's credit rating is still in the negative as he hasn't applied for a "certificate of discharge" and still has a note on his record with regards to bancruptcy, if he were to have a certificate and send a copy to the appropriate agencies then his credit score would be neutral and the note would be cleared if he requested it to be.
    "And crawling on the planet's face,
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  • Phonix
    Phonix Posts: 837 Forumite
    First Anniversary Combo Breaker
    Can anyone give me some advise? I may be about to make my father bankrupt because he's terminally ill with cancer.

    How painless is this process and how should I go about taking power of attorny as I don't want him to have to deal with this process, it's too unsettling even already.
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