Bad Credit Guide

Bankruptcy is on the increase, the Department of Trade and Industry reports that in the final three months of 2003 10,271 people declared themselves bankrupt, the highest figure since the recession of 1993. With the emergence of 'Lifestyle Bankrupts' the problem has become enormous for lenders who are keen to recoup their losses and encourage sensible borrowing.

Once your bankruptcy order has been discharged or cancelled you should send a copy of the Annulment Certificate or Order of Discharge to the credit reference agencies. These agencies will then see that your records are updated. If your bankruptcy has been annulled they should completely remove any record of it from your file. Your file will show that you are a discharged bankrupt.

The Consumer Credit Counselling Service estimated that around five to seven per cent of people with unsecured lending are having trouble meeting regular payments. With all this in mind it is worth looking at the types of mortgages on offer to people who may have experienced financial difficulties in the past.

Many lenders realise that although there may have been a problem in the past, it may not represent any current circumstances and are more likely to look at all the evidence regarding the reasons for a less then perfect past where finances are concerned. If you have had a £250 CCj that has been paid off, it is likely that your deal will be less punitive than for a discharged bankrupt.


Failure to pay a utility bill or difficulties due to a divorce can result in CCJs.

A County Court Judgement stays on your record for six years although you can apply to have the matter investigaged. You do this by providing a Notice of Correction which will be added to your file, this is a 200 word statement in which you can explain if you feel any circumstances should be taken into account giving the details of the other person/s involved and their relationship to you.

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