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Credit and Credit Repair Archives - Page 2 of 3 - Bankruptcy UK

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Bankruptcy Discharge

A bankrupt may be discharged (freed from obligations under the bankruptcy order) in 12 months or less from the date of the bankruptcy order. Discharge releases the bankrupt from most of the debts owed at the date of the bankruptcy order. Exceptions include debts arising from fraud, certain crimes and fines. Certain other debts such as damages or personal injury or money owed under family proceedings (such as maintenance) will be released only if the Court agrees. The good news, however, is that in 99% of cases you will be debt free in one year or less.

What is the procedure for annulling a bankruptcy?

A bankruptcy can be annulled in some cases, especially if a settlement is forthcoming immediately after the bankruptcy. In fact, even if a settlement came several months after the bankruptcy, it would still be possible to annul it. In these cases, the record would be removed from your credit file and it would be as if it never happened.

Although you are discharged from bankruptcy after 12 months, the record or imprint stays on your credit file for six years and many people are anxious to avoid this. For this reason, some people are willing to settle even after they have been discharged as this will remove the record from their credit file. In these cases, the individual would get back in touch with the Official Receiver or Trustee who handled the case.

Bankruptcy UK offers assistance at all levels and will prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

 

What will happen if i inherit money and then go bankrupt?

The money will become part of the bankruptcy estate i.e. attached and used to pay off your creditors. It’s important to note that, with money to hand, you could get a very favourable settlement with your creditors, possibly as low as 25% of what you owe them. Better you do that than lose everything in bankruptcy.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

How will my ex going bankrupt affect me?

My ex wife is now bankrupt after a business failure. She was made bankrupt by her ex-employer, a brewery, and the officials have asked for our divorce agreement. We divorced nearly 4 years ago and I gave her a share of my house, a share of my pension plus £800 a month. Am I at risk ? Will my settlement be revisited to help pay creditors?

Taking it from the top: The pension will not be affected, but the £800 per month will form part of her income when the court assesses whether or not she has to contribute on a monthly basis in an Income Payments Agreement (IPA) over the next three years. An IPA comes into force when it is determined that the individual has surplus income after all expenses. This is the single most important aspect of the bankruptcy procedure, as a bodged Income and Expenditure will cost the person dearly.

Regarding the house, this could be an issue if there is equity in the property. The Official Receiver will investigate her interest in the property and its value, as it is the OR’s role to liquidate assets and distribute the funds to the creditors. If the property has no equity, this will not be a problem. Having said that, if the conditions surrounding the house were specified in the divorce agreement, it is unlikely the Official Receiver will intervene.

Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page. Please note, court appearances are no longer required for bankruptcy as everything is processed online.

I have lost my bankruptcy discharge letter – how do i get another copy?

The only possibility is to get a copy from the County Court where you went bankrupt. Provided the bankruptcy didn’t take place more than six years ago, it should be possible.

Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page. Please note, court appearances are no longer required for bankruptcy as everything is processed online.

Bankrupt 25 years ago – will I get a mortgage?

If i try to get a mortgage and have been out of bankruptcy for 25 years, if the solicitor asks if i have ever been made bankrupt will it show up anywhere?

All trace of the bankruptcy would have been removed from your credit file a maximum of six years after the bankruptcy was first recorded, so this is well and truly off the radar. In fact, we are told by our associate Mortgage Brokers that it is now possible to get a mortgage as soon as three years after discharge, so we doubt there will be an issue. Good luck in your new home.

Call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help. Our advisers are not scripted and will gladly explain everything in easy to understand terms.

 

When is bankruptcy removed from my credit file? How can I repair my credit rating?

You are bankrupt for one year and removed from the Insolvency Register three months later. Anyone may view the Insolvency Register, it is in the public domain – simply Google it. Bankruptcy only comes off your personal credit file after six years. However, people can do a lot to restore their credit ratings relatively quickly: once discharged from bankruptcy, pay for an official letter of discharge and send copies to the credit reference agencies viz. Experian and Equifax.

The credit reference agencies will be unaware of your status unless you tell them. You might also consider applying for an ‘impaired credit’ credit card (Lumus.co.uk, Capital One, Aqua, etc.) and making regular small purchases and payments. This will work wonders for restoring your credit rating and it is often the case that people have credit scores of 700 plus just 15 months after discharge. You can now get a mortgage just three years after discharge from bankruptcy.

Bankruptcy UK offers assistance at all levels and will also prepare and submit your bankruptcy application online. Court appearances for bankruptcy are no longer required. Feel free to call us for bankruptcy help on 01425 600129 for a chat about your circumstances.

How can i get a copy of my bankruptcy discharge?

If you call the County Court where you went bankrupt, they will tell you what they charge to provide a certificate of discharge. Once you have this, it would be best to send copies to the credit reference agencies as they don’t automatically update credit files.

This would be the first step in restoring your credit rating. The next step might include obtaining an ‘impaired credit rating credit card’ (Lumus.co.uk, Capital One) and making / paying small transactions, month after month. Certain broadband providers, such as Virginmedia, also set up contract arrangements on your credit file and record payments made.

Feel free to call us on 01425 600129 or 07479 739139 / 07894 481175 with any further bankruptcy questions or for bankruptcy help.

Credit for a limited company during bankruptcy

i am currently personally bankrupt, i would like to start a limited company when i am discharged, can i get credit for my limited company right away? I would like to start a property holding company and will need a lot of finance.

The answer is a definite ‘No’ as not only are you barred from holding a Directorship during bankruptcy, but you cannot be seen to be influencing the running of any limited company – existing or proposed – in any way. We feel obliged to point out that while bankruptcy is a civil process, violation of this particular activity may result in a criminal conviction. However, once discharged, you are entitled to apply for credit but you might struggle to get it. With the amount of finance required it seems likely that the banks will ask for Personal Guarantees and they won’t consider you suitable so soon after bankruptcy.

Bankruptcy UK specialises in taking people through the bankruptcy process in a straightforward manner. We will assess your circumstances then submit the bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for an informal chat about your circumstances on 01425 600129.

Bankrupt but debts still appear on my credit report – why?

I had to declare bankruptcy 4 years ago. On checking my credit report, the bankruptcy does not appear. In addition, some buy to let mortgages that I took out prior to and declared in my bankruptcy, are still showing as not being paid. Can you please tell me what is going on?

Information about previous creditors remains on your credit file for six years regardless of your bankruptcy status. If it has been longer than this, you might need to contact both Experian and Equifax with a view to having this information removed. There are companies which specialise in credit repair for a fee. In your case, this might be money well spent.

Bankruptcy UK offers bankruptcy help across the board and will submit your application online. Court appearances for bankruptcy are no longer required. Feel free to call us on 01425 600129 for a chat about your circumstances.

 

 

Bankruptcy UK

Bankruptcy UK