When a person is made bankrupt, a record is created that typically lasts for around ten years. There are some cases where the record will be erased earlier, but if you are declared bankrupt then you should expect it to stay on your record for up to ten years.
These records are viewable by creditors and they will determine whether you are offered future credit. This includes loans, credit cards, mortgages and any credit involved for purchasing pay monthly products.
How Bankruptcy Records Will Affect You
As well as a record to show that you have been made bankrupt, you will also have a record to show that the bankruptcy has been discharged. You will need the discharge report if you are to prove to future creditors that the bankruptcy is behind you.
Typically a bankruptcy record will include the creditors who you owed money to, when you were made bankrupt, whether an IVA has been arranged and whether the bankruptcy has been resolved. It is possible for you to ask for a credit reference agency to remove your bankruptcy once it has been repaid. However many will simply place a resolved status next to the bankruptcy instead of removing it completely.
It is worth noting that professionals can search for bankruptcy records online. There are bankruptcy record searches online where employers, solicitors, creditors and other professionals can see if a business or individual has been made bankrupt. So if you have applied for a new job recently, your potential future employer could search to see if you have a bankruptcy record that you have not mentioned. That is why it is always better to mention any bankruptcies that you have filed for.
Bankruptcy records can also be used by financial experts to see how the financial market is doing.
So as you can see, a bankruptcy can affect you in so many different ways. It will not just affect your future chances of being accepted for credit, but it will also be used to determine employment. If you are interested in seeing your bankruptcy record then you can always request one online or from your local court.
Overall bankruptcy records are kept for every individual and every business that is declared bankrupt. A number of professionals will be able to gain access to these records. Whenever possible you should always get a copy of your discharge forms so that you can prove to future creditors that you have resolved your bankruptcy.
