The implications of Bankruptcy/IVA/Liquidation on your credit rating

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All three will affect your credit rating, detailed below the individual effects.

Bankruptcy

The bankruptcy order will show up on any credit report for a minimum of six years from the date of the bankruptcy order. During the period of bankruptcy (12 months) a number of restrictions apply.

You are legally bound to inform a lender you are bankrupt if you are applying for credit of more than £500.  Even after your bankruptcy has been discharged, organisations might refuse to give you credit or other financial services simply because you have been bankrupt in the past.

The bankruptcy may affect your creditworthiness long after the information has been removed from your credit report.

Individual Voluntary Arrangement (IVA)

An IVA will affect your credit rating as it will stay on your credit file for six years after the date of commencement (typically one year after your IVA has been completed).

It is important to remember that the consequences of not dealing with your debt problem properly are much more severe than impairing your ability to take out further credit when you are in severe financial difficulty.

Liquidation

Credit Reporting Agencies do keep track of companies that enter Liquidation and the names of the directors of those companies. When someone does a personal name search at a Credit Reporting Agency they will obtain details of any companies that have entered Liquidation while you were a director from the last seven years.

There is very little can be done, it will be a mark on your credit record that will be found if someone looks deep enough.

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