Which debts can be included in bankruptcy?
Most of your unsecured debts, such as credit cards, personal loans, payday loans, guarantor loans, catalogue debts, store cards and overdrafts, can all be included in the bankruptcy. Additionally, HMRC Tax or VAT debts for which you are personally responsible, council tax arrears, utility bill arrears, gambling debts, outstanding balances after home or vehicle repossession, benefits overpayments and business loans for which you are personally responsible can also be included in bankruptcy.
Will bankruptcy affect my ability to get a mortgage?
Yes. Bankruptcy stays on your credit file for six years and can make getting a mortgage more difficult. Some lenders may also ask if you’ve ever been bankrupt, even after it drops off your credit record. You may need to wait, rebuild your credit or save a larger deposit to improve your chances.
Who will find out about my bankruptcy?
Your bankruptcy will appear on the Insolvency Register during the bankruptcy and for three months after. It’s also published in The London Gazette. Most people won’t see this unless they’re specifically looking, but lenders or employers may check.
Can bankruptcy affect my job?
It can, depending on your role. Some professions – such as the Police Force, Armed Forces or certain local government roles – may have restrictions. It’s important to check before applying.
What happens when my bankruptcy ends?
When your bankruptcy ends (usually after 12 months), any debts included are written off, and you’re no longer responsible for them.