# Implications of being a bankrupt, post release/discharge??



## Cantalia (23 Apr 2013)

Hello, I have been reading the various threads on UK bankruptcies but have no clear list of the resulting implications of being a bankrupt person after the 12 months has passed and you have been released/discharged by your official receiver. Any info greatly appreciated.


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## Negotiator (23 Apr 2013)

My understanding is that in the UK you are on a bankrupts register for circa 5 years and indefinitely in Ireland (typical again of the penal Irish system!). 

Needless to say that banks will be very reluctant to lend to a former bankrupt but the quickest way to negate this as much as possible would be start borrowing small amounts of money as soon as you are discharged from bankruptcy to start repairing your credit rating. My guess is that in several years time, former bankrupts won't be penalized as much as they perhaps have been in the past as this period in our economic history will be seen as an extraordinary period.


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## Cantalia (24 Apr 2013)

Thank you negotiator. Does anyone else have specific detail on this please? Also how would one go about borrowing small sums to try and repair the rating, for example does the repayment of a credit union loan link into the credit rating agency?


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## Slim (24 Apr 2013)

Cantalia said:


> ...does the repayment of a credit union loan link into the credit rating agency?


 
More and more CUs now link into the ICB. This will vary from CU to CU but will be clear at time of borrowing.


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## Gerry Canning (24 Apr 2013)

Cantalia said:


> Hello, I have been reading the various threads on UK bankruptcies but have no clear list of the resulting implications of being a bankrupt person after the 12 months has passed and you have been released/discharged by your official receiver. Any info greatly appreciated.


 Once you are discharged there are minimal implications. An acquaintance in North Ire , worried would he even get bank ac. As  the Bank official said {you owe no-one else, you have no other debts , you now have a paying job, why wouldn,t we deal with you ?} In SHORT a working discharged Babkrupt has NO baggage!!


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## Negotiator (24 Apr 2013)

salmon9077 said:


> Once you are discharged there are minimal implications. An acquaintance in North Ire , worried would he even get bank ac. As  the Bank official said {you owe no-one else, you have no other debts , you now have a paying job, why wouldn,t we deal with you ?} In SHORT a working discharged Babkrupt has NO baggage!!



Yes but the UK are light years ahead of the Irish banks with regards insolvency issues so it is yet to be established what it will be like in Ireland. My guess is they will be quite penal for at least the first few years.

However there shouldn't be anything to stop you depositing money against a loan with the bank as security so there's no risk to the bank and you can start the repair process that way.


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## Cantalia (24 Apr 2013)

Yes that's what I was thinking. Where can I find out what are the criteria/timeline to a good credit rating. I googled the Irish credit rating authority but it has limited info


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## Negotiator (24 Apr 2013)

Cantalia said:


> Yes that's what I was thinking. Where can I find out what are the criteria/timeline to a good credit rating. I googled the Irish credit rating authority but it has limited info


In my opinion there is no real definitive info with regards to this because it's untested in Ireland. There has been no insolvency arrangements per se before and there has literally only been a handful of people declaring bankruptcy before now although that will see a dramatic increase soon as more and more people are heading to the UK for this. 

You can get all the advice in the world from the 'experts' but it's crystal ball stuff at the end of the day and only time will tell. 

But as it stands right now, my understanding is that bankrupts are placed on a register indefinitely in Ireland......even if you declare bankrupt in another country! However all your debts will fall away and your ICB record should be clear in 5 or 6 years.


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## Cantalia (25 Apr 2013)

Thank you everyone. I have been saddened by the despair and worry I read on this forum, of very ordinary people, but heartened by the efforts of others to give them good advice. Tough times all around.


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## Bronte (25 Apr 2013)

Cantalia said:


> Yes that's what I was thinking. Where can I find out what are the criteria/timeline to a good credit rating. I googled the Irish credit rating authority but it has limited info


 
Why don't you telephone them and ask?


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## Cantalia (25 Apr 2013)

I will. And will post what they say.


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## Bronte (25 Apr 2013)

Negotiator said:


> the quickest way to negate this as much as possible would be start borrowing small amounts of money as soon as you are discharged from bankruptcy to start repairing your credit rating.


 
That's very good advice to get you a good credit rating again.  One could presumably start with a credit union and move on to a credit card and build up savings in a bank and see then if one can borrow.  Like starting again.  Only don't make the same mistakes as the first time !


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## Cantalia (29 Apr 2013)

I rang the credit rating authority of Ireland. They have a new website with lots of info but only a two liner on improving ones credit rating. I rang, it's a call back service, no one rang back. In any event it seems that it just has to be built up again over time.


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## Steve Thatcher (21 May 2013)

Cantalia said:


> Hello, I have been reading the various threads on UK bankruptcies but have no clear list of the resulting implications of being a bankrupt person after the 12 months has passed and you have been released/discharged by your official receiver. Any info greatly appreciated.




Your credit rating is mucked up here for 6 years. You may also have to face a question on a future mortgage application about whether you have ever been bankrupt.
You can help yourself by getting a card from some one like Aqua or Vanquis once you have been discharged. They charge high interest. Pay it of in full each month and its starts to give you credit on our file.

The point i guess is that in due course lenders will be back in the market. There will be a lender for everyone. You will have no debt but you will be seen as a risk as you have defaulted in the past. The decision will for an underwriter and they will take your circumstances in to account.

Also, I guess realistically forget about the future and deal with the now. Dump the debt and worry about future lending when you need it down the road.

Steve Thatcher
www.helpwithdebtuk.com


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