Can I Get New Credit or Loan After Bankruptcy?

This debt solution applies to residents in England, Wales and Northern Ireland only.

Bankruptcy can harm your credit score, making it hard for you to obtain any type of credit or loan in the future.

It is restricted by law to obtain new credit or loans amounting to over £500 unless you get discharged. Of course, you have to tell your lender that you are bankrupt. Instances would be, you’ll get rejected instantaneously. If approved, you’ll surely receive a higher interest rates.

Though you might not be telling potential creditor or lenders about your financial situation, or the amount that you can only borrow, they’ll still find out once they check your credit record.

The details regarding your bankruptcy will remain in your credit for six years. This starts from the date the court declares you bankrupt. In this case, bankruptcy will drastically affect your credit rating for several years even after your bankruptcy discharge.

Once you get a bankruptcy discharge, there might be no limit in terms of legality on how much you can borrow, yet it can be harder. This is because creditors will surely check your creditworthiness. The chances of getting approved are likely to happen but come with higher interest rates. This is because creditors see you as a credit risk.

Getting Mortgage After Bankruptcy

You may see it challenging to ask for a mortgage following the bankruptcy. Bankruptcy will stay on your credit record for six years; so, mortgage lenders can see the bankruptcy record in your file. It’s furthermore possible that a mortgage lender will ask if you’ve been bankrupt when you try to obtain a mortgage.

Although you may see it tough to obtain a mortgage after an insolvency, several lenders will have varying guidelines; so, it’s meriting to speak with them concerning it at the start. Other mortgage lenders accept individuals with a lower credit score; however, it may indicate you ought to pay a larger interest rate. If you’d want infinite advice about this, we have a specialist mortgage experts who can help.

Your Free Bankruptcy Guide

At times when you’re on the verge of giving up on your debt, filing for personal bankruptcy can be very tempting. After all, you can have relief from debt collectors who are trying to chase you with the money that you owe. The significant fact in filing for bankruptcy is that you will be compelled to give in all your assets and the negative effect that it can bring on your credit rating. Bear in mind that help is always available contact us for free debt advice.