Being bankrupt is such a mess and a hassle for an ordinary person like you. Bankruptcy is caused by the non-payment of debts of an individual or entity to their lenders or official receivers. The debtors filed a relief in some or most of their unpaid or unsettled debt.

You are also wondering if how long does bankruptcy stays on your credit report. You are worried that if you don’t pay your debts on time, you will not lend again or apply for mortgages and other related matters. Sometimes, your new employer or new landlord will ask for your credit profile to know if you can pay. In the United Kingdom, your bankruptcy records will show up to 6 years. Although, for usual circumstances, your history will stay in your profile for 12 months after you have correctly settled your unpaid dues. Your lenders will take you to court if you are unable to determine your debt, and they will require you to pay it, therefore, prolonging your bankruptcy record in your credit profile

How long does bankruptcy stay on your credit report.

After 12 months of bankruptcy

In the United Kingdom, particularly in England, Wales, and Northern Ireland, your lender will let you pay for 12 months to settle your dues. During these months, you are restricted from borrowing and give ample time to pay. After paying for 12 months, your lender will discharge you from bankruptcy, and therefore, your record is removed from your profile. Although, you take note that you should be honest about your previous financial history as some companies require you to disclose your current financial situations.

After 15 months of bankruptcy

If you are dishonest with your financial statements, your lender or official receiver will take you to court to have you included in the Individual Insolvency Register (IIR). IIR is the list of bankruptcy restrictions and debt relief register in the UK, which will let you pay your dues after 15 months from your date of bankruptcy.

After 27 months of bankruptcy

If you cannot pay your dues after 27 months of bankruptcy, your lender will put more restrictions on you. They will put up your property for sale, and worse, they will decide more on what to do with your property every after nine months should you continue to break their rules on payment.

After six years of bankruptcy

Dishonesty and breaking your lender’s rules will not do you good. After six years of non-settlement of your dues, your lender will apply for Bankruptcy Registration Undertaking (BRU). BRU is an order where the lender will further give restrictions to you for two to 15 years, depending on the severity of your disobedience to your lender.

Your bankruptcy records will stay in your credit report for 12 months up to 6 years, depending on the severity of your actions to your lenders or official receivers. You should settle your debts with your lender within 12 months of your bankruptcy so you will be discharged after. Therefore, less hassle and worry for you should you decide to borrow money again.

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