This page explains what you need to know about bankruptcy and credit.
Borrowing during bankruptcy
There are rules you must follow until you are discharged from bankruptcy.
You cannot borrow more than £500 from any lender without telling them you are bankrupt.
You do not need to tell them if you are borrowing less, but they will find out when they do a credit check.
Your bankruptcy may mean you are charged more interest to borrow the money.
Your Credit File
Bankruptcy stays on your credit file for at least six years from the date the court makes you bankrupt.
This means it affects your credit rating even after it ends.
Borrowing after bankruptcy
There is no legal limit on borrowing after bankruptcy. But it can be harder while it is still on your credit file.
You may be:
This is because lenders think bankruptcy makes you a bigger risk.
Extensions to bankruptcy
The official receiver (OR) can extend some of the terms of your bankruptcy if:
- They find you acted dishonestly
- They find you acted irresponsibly
This can last for up to 15 years.
They do this by applying:
- A bankruptcy restriction undertaking (BRU) or
- A bankruptcy restriction undertaking (BRO)
These stay on your credit file until they end, which could be longer than the normal six years.