Bankruptcy Information Uk
Bankruptcy Blacklist?
If I were to go bankrupt now and have my bad credit wiped after 6 years, will I still have trouble getting credit after this period? Will I be ‘blacklisted’? Just how bad would it be for me? And if I do get blacklisted, what can I do to get off the list once I’ve served the bankruptcy term?
I have read all the information about going bankrupt etc. and I know what the disadvantages are, but I can’t confirm what happens after the 6 year period. I’ve heard of people going bankrupt years ago and still not being able to secure credit, but I’d like to get a mortgage in the future (once I’ve stacked mad chedder) and am afraid of not being able to. I was told that some people cannot even secure a job because they went bankrupt 10 years ago, and are still struggling with credit. This is hearsay though, I’d just like to know if this is true.
This is in the UK by the way, not the US
There is no ‘blacklist’ … there are Credit Reference Agencies (eg Experian) who keep records of your financial transactions and who generate a Credit Score ..
In USA this is expressed as a number = 1000 being ‘perfect’ and 0 being dead .. (yes, dead people have been known to apply for loans …) .. in UK this used to be an ‘alphabetic’ system (like exam results … A+ being ‘perfect’ and F being dead) however most Agencies have now moved over the the US system..
You ’score’ is adjusted every MONTH … every month you miss a payment, are late with a payment, pay less than the due amount (short payment) it counts against you … going Bankrupt will mean hundreds of short payments … the ‘older’ the default, the less it counts …
Companies will check your Credit score for any job that deals with money – so you may well find it difficult if not impossible to get a job eg in Banking / investment / Financial Services industry ..
A Mortgage is a ’secured loan’ (i.e. if you fail to pay, they take your property) = so even if you have a low score you can still get a Mortgage – just so long as house prices are rising or you are asking for a fraction (eg 2/3rds) of the value … indeed, in USA, Banks handed out NINJA mortgages = to people with No Income, No Job or Assets .. )
Unsecured loans (eg Credit Cards, Overdrafts) may be refused for a lot longer than 7 years after your Bankruptcy is ‘discharged’ ..
Bankruptcy Information UK
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