Table of contents
How to recover from bankruptcy
Recovering from bankruptcy can seem daunting, but following these simple steps can make it easier.
Checking if your bankruptcy is over
You might not get a letter when your bankruptcy ends. You can check the Insolvency Register online to see your end date. It takes about three months for your name to come off this list. Contact the Insolvency Service if your name stays on there longer than expected.
How do I get proof of my bankruptcy discharge?
We suggest that you ask the Insolvency Service for a Certificate of Discharge. This is a free letter proving your debts are cleared. You can show it to anyone who asks about your old debts.
How do I find my bankruptcy discharge date?
To find out your bankruptcy discharge date, you can check the insolvency register. You can access the insolvency register to find your discharge date for free for three months after your discharge, simply search for your name and location and you will find your listing. Just keep in mind that your bankruptcy details are only visible for three months after your discharge.
It’s a good idea to keep an eye on this as your bankruptcy progresses to ensure all the information on it is correct.
If you’re ever unsure, ask your Official Receiver for information about your discharge date if you can’t access the insolvency register for whatever reason or don’t have any paperwork to hand.
Sorting out your home
The person administering your bankruptcy, known as a Trustee, has three years to decide what to do with your house. Sometimes you might have to move out if it is sold. You’ll get to keep your home if they don’t decide within three years. You could stay with family if you do need to move. You can also ask the council or our partner Shelter for help finding a new place.
Opening a new bank account
Your old bank account was likely closed as part of the bankruptcy process. Once you’re discharged, now’s a great time to open a new one. During bankruptcy, you can still have a basic bank account and consider whether you wish to move to a different account and the benefits of doing so. This will help you pay your bills on time and avoid debt. Bear in mind, you might not get an overdraft right away. You should still be able to use online banking though.
Rebuilding your credit score
Your credit score will be low for a while. Your bankruptcy stays on your record for six years, but you can slowly build your score back up. You could try getting a small credit card, but only if you’re able to pay it off completely every month. You should also check you’re on the electoral roll to keep your details correct. Check out this guide on improving your credit rating to help with this step.
Managing your money
Now is a brilliant time to start a new budget. Look at what you need to spend money on first. Cut out things you don’t really need. A budget helps you stay in control of your money. The 50/30/20 rule works for a lot of people. You can read more about this and how to avoid debt in the future here.
Dealing with creditors still chasing after bankruptcy
Sometimes, people you owed money to might still ask you to pay. This shouldn’t happen. Show them your free discharge letter to prove the debt is gone. You can complain to the Financial Ombudsman if they keep asking, using our guide to challenging a debt. It’s important that you don’t pay any debts included in your bankruptcy.
Getting a mortgage after bankruptcy
It can be hard to get a mortgage right after bankruptcy. It’s best to wait until your credit score is better. Remember, your bankruptcy stays on your credit file for six years. Some lenders might ask if you’ve ever been bankrupt. You must tell them the truth.
There are ways to improve your chances of getting a mortgage. Time helps your credit score grow. Mortgage brokers might know which lenders might say yes to you. There are also some specialist lenders who only help people who’ve had past debt solutions. It’s also likely that you’ll need to save a large deposit at first. You might not need to save as much if you wait a few years. Your interest rate will probably be higher for a while, too.
Getting help and advice
We know this process sounds overwhelming. When you contact PayPlan, we will explain all your options clearly and how you can get back on your feet after going through bankruptcy.
Our advice* is private and completely free. Get debt help online or call us on 0800 316 1833 for a confidential chat today.
Get free, confidential advice today
*Our advice is completely free, and you will never pay just to speak to us.
If you choose to proceed with a debt plan, some options incur fees. For example, there is a government-set fee to file for bankruptcy. We’ll always explain any costs to you very clearly before you agree to anything. For more information, speak to our advisors.
