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Bancruptcy and Credit Rating

Your bankruptcy will be registered with credit reference agencies and will remain on your file for a minimum of six years. After this time you may still have to declare your previous history, particularly when applying for a mortgage.

In Relation To Your Creditors

If you are made bankrupt, you must not make payments direct to creditors. Creditors to whom you owe money when you are made bankrupt make a claim to your trustee (that is, either the Official Receiver or an Insolvency Practitioner). They should not ask you directly for payment; if you receive any requests, pass them immediately to your trustee to deal with and tell the creditor that you are bankrupt. There are some very limited exceptions to this non-payment rule. The main ones are:

  • Secured creditors, such as creditors who have a mortgage or charge on your home. Note: If mortgage payments are not made, the lender may sell your home

  • Non-provable debts, such as court fines and other obligations arising under an order made in family proceedings or under a maintenance assessment made under the Child Support Act 1991. Non-provable debts are not included in the bankruptcy proceedings and you are still responsible for paying off such debts

  • Benefit over-payments, where the Department for Work and Pensions (DWP) can recover any benefit over-payments from any further benefits you receive.

  • Student loans, since 1 September 2004 all outstanding student loans cannot be claimed in bankruptcy. They remain the responsibility of the (former) student to repay within the terms of the loan arrangement.

  • If you were made bankrupt before 1 September 2004 you may still have to repay your student loan. Clarification should be requested from the Official Receiver who is dealing with your affairs.

Suppliers of services to your home (gas, electricity, water and telephone) may not demand from you payment of bills in your name which are unpaid at the date of the bankruptcy order. But they may ask you for a deposit towards payment for further supplies or could arrange for the accounts to be transferred into the name of your spouse or partner. You must pay continuing commitments such as rent (if you rent your home), together with any debts you incur after the bankruptcy.

Debt Resolution ForumConditions apply. Calls may be recorded for quality purposes and training. Dependent upon the solution provided fees may be payable. Repaying debt over a longer period may increase the total amount to be repaid. Your ability to obtain credit will be affected in the short term and maybe in the medium to long term.