Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By SarahM
#2953 Hi,

Both H and I have sat and had a long hard think and have decided to go with the Big B route.
We are currently sorting out our finances and timings etc etc.

We are all up to date with utilities and rent thankfully. Just behind on loan, CC payment and Store card. We will be making token payments to these this week.

I think we'll be doing 'it' after pay day. We've redirected our pay into an account where no DD's are coming out so I think we'll withdraw the money and then go for it!!!!!!!!!!!

Although I feel very nervous I am starting to feel a little more at ease.

My main worry is what happens after..........

Although we won't be going stratight for this - for obvious reasons....
But when can you apply for a mortgage?
Also how long does Bankruptcy 'stay' with you after the 6 - 12 mnth period?

When you've become discharged - what does this mean? Does this mean you no longer have to tell people (financial) about being bankrupt.

I guess - the bit that worries me is that there will be something on files within banks etc etc that will stay with you FOREVER!!!! If you know what I mean.

I know this has all been covered _ but I just need to be sure where doing the right thing....................

#2955 Hello

Bankruptcy stays on your credit file for 6 years (not sure whether from date of petition or date of discharge). I have heard many cases of people successfully obtaining mortgages after this period, although the rates may be slightly higher.

When you're discharged it means no no longer have the restrictions you had when you were bankrupt (for example not allowed to apply for more than £500, can not be company director etc) - I think the full details of this can be found on the UK insolvency website. You only have to tell people if you're specifically asked 'have you ever been bankrupt'.

It is possible to get credit before the 6 years are up, but can be quite difficult, and you would probably get charged very high rates.

Main thing to bear in mind is that bankruptcy isn't like it used to be - yes it's still a huge step that shouldn't be taken likely, but is also a fresh start.
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By JaneClack
#2962 Sad'nskint should have put your mind at rest and I can tell you that people have gone for mortgages after discharge but well before the end of the six year period. (Which incidentally is 5 years after discharge - six years in total.) It will be at a higher rate but after a few years one can remortgage with another lender if things have gone OK anyway!

Hope whatever you decide goes well!