bankruptsy

[gossipgirl]

i was just wondering if anyone could shed any light on this question. A group of us were talikng yesterday for some random reason about declaring yourself bankrupt, and where as i said once your bankrupt all your debts are ''written'' off but you will NEVER get any sort of credit again, she tottally disagreed and said that after being bankrupt for 5 years you get a brand new slate and could. what is true?

[Bbbananas]

After 6 years your bankruptcy goes off your record.
There are also companies who specialise in loans, credit etc to those with poor or bad credit history - though you will be very very hard pressed to find anyone (reputable) who will lend to a discharged bankrupt before the 6 years is up.

[Bbbananas]

When I say 'discharged' - you are usually discharged around 12 months after you have first declared yourself (or someone has made you) bankrupt. Butthe fact that you were bankrupt will remain on file for a total of 6 years after first declaration.
Hope this helps?

[gossipgirl]

would the same thing occurr then if you had a bad credit histor, after 6 years its taken off your record and your given a clean slate?

[Bbbananas]

Sorry to be a pain - but if you are interested in all the facts, www. insolvency.gov.uk is a really good website to consult.

[Bbbananas]

no - I don't think so. Bankruptcy is a way of giving someone the chance of a 'clean slate'. A bad credit history in general I don't think has the same rules.

[themas]

1. If you default on payments on a loan, the default goes on your credit record and is removed after 6 years, so you might end up with a clean record just as you migfht after bankruptcy.

But a clean record does not mean you can happily start getting credit again. A lot of lenders look unfavourably on people who do not have any credit record and refuse to give them credit! (Of course, that doesn't apply to impecunious young people - students - who the banks seem quite content to lend to!)