How bankruptcy may affect you and your life

How does bankruptcy affect my credit score?

Your bankruptcy will show on your credit report. This makes it harder to borrow money or get credit for a while. While you’re bankrupt, you must tell a lender if you want to borrow £500 or more.

When you’re thinking about bankruptcy, it’s important to think about how your choices might affect your family and your job. While bankruptcy is one option, there’s other ways to get back on track that might be a better fit for you.

How long does bankruptcy stay on my credit file?

Bankruptcy usually stays on your report for six years. After that time, it’s removed and you’ll be able to start improving your score again. Even when it’s gone from your report, you should always tell the truth if a lender asks if you’ve ever been bankrupt in the past.

Will anyone know if I’ve gone bankrupt?

When you go bankrupt, your name and address are put on a public list called the London Gazette and the insolvency register. Usually, only people like banks or those you owe money to will look for this. Your friends, family and neighbours won’t typically see it unless they specifically search for it.

Bankruptcy can sometimes make things difficult if you want to run a business or work in certain jobs, like finance. Some employers might ask about your history when you apply for a new role. It’s a good idea to check your current work contract to see if there are any rules you need to know about.

Thinking about bankruptcy but unsure what’s right for you?

Get free debt advice online or call 0800 316 1833 to speak to one of our experts. We’ll explain the solutions available, check what you may be eligible for and help you choose the option that best fits your situation.