Your credit file holds information about credit you’ve taken out in the past six years. If you want to take out a loan, lenders can access your credit file to see if you’ve defaulted on accounts or made late payments to them. This helps them understand if you’ll be able to pay back the money you want to borrow.
Although bankruptcy usually only lasts for 12 months your bankruptcy will remain on your credit file for six years, starting from the date your bankruptcy begins. This means you might find it difficult to get credit during this time.
After bankruptcy you can improve your credit score by using credit sensibly. Find out more about credit scores.
If you try to get a mortgage, or rent a new home, during bankruptcy, you may struggle as your mortgage provider or landlord will often perform a credit check. They may also ask if you’ve been bankrupt in the past.
Thinking about bankruptcy?