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credit Archives - Page 2 of 24 - Bankruptcy UK

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Can I leave a credit card out of my bankruptcy?

No you can’t. All creditors need to be listed in bankruptcy, you can’t pick and choose which ones to include or exclude. We admit it would be tempting to hold on to a credit card which still had funds available, but if the Insolvency Service found out – and they will – you would be facing a Bankruptcy Restriction whereby you would remain bankrupt for several years. Just for the record, your local Official Receiver has access to bank accounts, credit files, DVLA and Land Registry records, etc. so there’s no place to hide. Our advice would be to play it straight.

Bankruptcy UK will guide you seamlessly through the bankruptcy process as we have been doing since 1998. We will avoid jargon and confirm all discussions by email within 30 minutes. Call us for a chat about your circumstances on 01425 600129.

Payday Loans Bankruptcy | Can I include Payday loans in my bankruptcy?

Loan providers and their collection and recovery team don’t always tell the truth when they are trying to get borrowers to keep up their repayments. they will say things like you cant put a Payday loan into a bankruptcy. None of this is true. The only exceptions could be pay day loans that borrowers have provided a guarantor to guarantee the loan. If this has happened then although any loans that maybe in a clients name will be included the lender will be able to pursue the guarantor.

When people ask the questions relating to: Payday loans bankruptcy– Can I include Payday loans in my bankruptcy then the answer is: Yes you can as Payday loans are provable debts in bankruptcy. We understand that your lender said ‘No’ because the loan was taken in the past 12 months. We’re not allowed to swear on this website, so we’ll just say that that statement is a load of poppycock. You can include debts taken five minutes prior to petitioning for bankruptcy, though we wouldn’t recommend it. In fact, we recall somebody paying for their court fees using the very same credit card as was listed on the Statement of Affairs. Admittedly, that was nine years ago and it certainly would not be advisable, nay, allowed in 2015.

If you have arrived in a difficult position with your finances and you have loans and confusion over secured loans and need expert help to be you into a position where you understand what is going on and get you to a peace of mind position then please contact our help team who will provide you with understanding and information that will help you to make the right decisions for your circumstances.

Feel free to call us with any questions or for bankruptcy help on 01425 600129, we are here to help. Most of our staff are from the financial services sector and have the experience to get you best result every time.

How long does bankruptcy stay on my credit report?

Many people get confused between what happens to their credit report and how long they remain on the Insolvency Register, so let’s look at the latter first.

All bad credit, including CCJs, late payments, returned direct debits and bankruptcies reflects on your credit report for six years, which underlines the importance of keeping on top of things.

The Insolvency Register on the other hand, is a formal record of all formal debt arrangements (IVAs, DROs and bankruptcies) and remains in the public domain for 15 months. When a record falls off the Insolvency Register, it does not directly affect your credit record; only time and the correct conducting of your accounts will solve those issues.

Your credit report will obviously be badly affected by bankruptcy, but from a lender’s point of view it is no worse than a history of late / missed payments and CCJs. In fact, we have heard of numerous cases where people have credit scores of 800 plus barely two years after discharge and mortgage brokers make no secret of the fact that you can now get a mortgage three years after discharge.

This would definitely not happen if you struggled along in a Debt Management Plan or IVA for years on end. The trick is to acquire a ‘credit impaired’ credit card as soon as possible and make regular payments on small purchases. The reason for this is that every successful payment records a ‘zero’ next to the creditor’s name (and ‘ones’ for missed payments) and these zeroes are good news for credit ratings.

Feel free to call us with any questions or for bankruptcy help on 01425 600129, we are here to help. Most of our staff are from the financial services sector and have the experience to get you best result every time.

If I co-signed for a debt am I still liable if my partner goes bankrupt?

Yes you are, as loans are taken ‘jointly and severally’ which means both parties are liable for the full amount and not half each.

In an ideal world, both parties would file for bankruptcy simultaneously thus avoiding this, but it rarely happens that way. Having said that, you might be surprised at how few lenders actually enforce their rights. It seems that receiving a letter from the Insolvency Service stops everything dead in its tracks. However, something that cannot be avoided is the negative impact it will have on the credit files of both parties concerned.

Bankruptcy UK specialises in guiding people through the bankruptcy process in a no-nonsense, straightforward manner. We will assess your circumstances then submit the bankruptcy application online. call us for an informal chat about your circumstances and receiving bankruptcy help on 01425 600129.

Bankrupts can now get Mortgages provided …

It seems the bad times are finally behind us, as lenders are now offering mortgages for those with poor credit histories, including former bankrupts. Yorkshire, Chelsea and the West Brom will allow up to 65% loan to value (LTV), while plenty of other banks and building societies will do 60% LTV. Chelsea even has a 75% LTV option for some poor credit borrowers, but we were unable to confirm whether this included former bankrupts.

Mortgage Brokers are telling us that the rule of thumb for former bankrupts is three years of clean credit, but warn that banks are asking hard questions about affordability. Unlike the formulas of years gone by, where it was simply a case of 4 x joint income, banks are now grilling people to find out exactly what their outgoings are and how much it is costing them on a monthly basis. It might sound like hard work, but at least banks are finally taking responsibility, unlike the pre-recession days when anybody with a heartbeat could get a mortgage.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

Pay Day Loans the ‘Kiss of Death’ for Mortgage Applications

Mortgage Brokers have reported that in the past 12 months 85% of mortgage applications involving previous Pay Day Loans, were rejected outright. And of the 85%, a staggering 57% had otherwise perfect credit histories.

Prior to 2012, it was impossible to distinguish between Pay Day Loans and other credit applications, but both Experian and Equifax now list these separately. Unlike other sources of credit which might actually aid a mortgage application, High Street lenders view Pay Day Loans as a financial cry for help and react accordingly. The message is simple: avoid Pay Day Loans at all costs, as even a satisfied one is the ‘Kiss of Death’ in the financial world.

Mortgage Brokers are not saying it is impossible to get a mortgage with a recent Pay Day Loan application on your credit file, but that they would have to ‘shop around’ for a willing lender and that the applicant would almost certainly end up paying a higher rate.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

What does a ‘Default’ on my credit file mean?

Accounts generally go into default once three missed payments are recorded on a credit file. If you request a copy of your credit file, you will notice a row of zeroes and ones running in a line next to the name of the creditor. Each zero means a successful monthly payment, while the ones mean a missed payment.

Needless to say, a string of ones is bad news for your credit rating and every effort should be made to make up the arrears. Fortunately, the lenders regularly update our credit files with details of payments, but it might still be an idea to get some type of acknowledgement from a lender once the arrears are made up and submit this to Experian and Equifax.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

White House ‘Looking closely’ at including student debt in bankruptcy

March 2015 – President Barack Obama has asked administrators to table proposals for including certain types of student debt, especially that loaned by private companies, in bankruptcy. Federal law currently prohibits any student debt, whether from private companies or the US Government from being liquidated in bankruptcy.

Private loans currently make up about 10% of all student loans, with the remaining 90% made by the federal government thus opening the door for student debt made by private lenders to be treated on par with credit card debt and mortgages.

The concern, it seems, is that an increasing number of post graduates are falling behind in payments, while others have defaulted altogether. If the initiative proceeds, private lenders would face stricter federal oversight and rules designed to make them more proactive in reaching out to distressed borrowers and offering better repayment terms.

As it stands, it is not possible to include student debt in a UK bankruptcy.

Should I clear debt with an IVA or Bankruptcy?

What choice should you make when considering an insolvency solution to clear outstanding and unmanageable debts? Making the right decision is critical. IVA companies will encourage you to take out an IVA as this makes them plenty of money, but beware the implications. Do I Clear Debts with an IVA or Bankruptcy?

IVAs can be an sound choice in some circumstances. If, for example, you wished to continue practicing as a Director or you have significant assets, then of course an IVA is suitable. However, a report released by the Insolvency Service indicated that of all the people who had entered into an IVA, less than 29% were given information about the benefits of bankruptcy and whether it might be a more appropriate solution.

IVA companies have now reduced the amount of debt required to qualify for an IVA from £15,000 to just £7,000 in a bid to attract more clientele. This is ridiculous when considering the long term damage this will have on your credit file. An IVA lasts for a minimum of 5 years. Your income is capped and if you earn any more money you are obliged to pay any surplus income to your creditors. This will leave most people on the breadline for years after they took out the arrangement.

Bankruptcy Restriction Order
Bankruptcy Restriction Order

There are always things people can do when looking for help and assistance. It is hard to get these answers when looking for free help and advice, as the reality is that free advice is often the most expensive information you can receive.

Look into the small print of these agreements carefully before you committing. If in doubt get a professional to look at it and have it explained to you.

Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.

 

 

Debt linked to Depression | Serious Debt Solution Provider

Of course debt linked depression exists. Most ordinary people have felt it. Maxed out credit cards and overdraft facilities … payday loans … the spectre of County Court Judgements and foreclosures. It’s enough to drive someone over the edge. The fact is, people often misjudge situations and before you know it, they have a load of minimum payment facilities and no way of making it through the next month.

An Insolvency specialist is trained to limit damage, but sometimes the best solution is also the most straightforward – simply declare bankruptcy. Believe it or not, the right to a ‘fresh start’ following a bankruptcy is actually enshrined in the Insolvency Services’ Technical manual. Okay, if you’ve only got a few thousand outstanding there are probably better ways of dealing with it, but for those who have unmanageable debts, bankruptcy is almost certainly the best way forward.
debt linked depression

You might be surprised how many people tinker with the likes of IVAs and Debt management plans before taking the plunge, but these only serve to draw out the process by anything between 5 – 20 years. And during all of that time, your credit rating is ‘trashed’, you’re not worth a bean on the high street. Did you know that the average credit rating for someone who has been discharged from bankruptcy for just 18 months is 700 – 750 or ‘fair’?

Fear and pride are often the two things that stop us from making the right decision. In many cases, people just don’t know the facts surrounding bankruptcy. We’ve recently posted ‘Bankruptcy Myths … the definitive Guide’ on this website which debunks most of the nonsense. Give us a call if you still aren’t sure, we’ll gladly give you half an hour of our time.

Feel free to call us with any other bankruptcy questions or for bankruptcy help on 01425 600129.

 

 

Bankruptcy UK

Bankruptcy UK