I keep seeing posts that make bankruptcy seem an easy option, especially now it only lasts for a year instead of three. However, bankruptcy really stains your financial reputation and credit worthiness for a very long time indeed, perhaps even forever! It does have its uses, but it really is something you need to think long and hard about before you take the plunge (if you have a choice of course)
I have posted on another thread, but would like to highlight my case to warn others, and perhaps recieve some useful advice to help me recover my creditworthiness.
In 2001 I was working as a contract relief milker, when the foot and mouth outbreak hit. Overnight, my contracts evaporated and I was stuck working on the farm that I was on at the time. Unfortunately this was one of my smaller lower paying contracts and I very quickly fell behind with credit payments ect. I struggled on for around six months getting further and further into the poo! (italics have just switched on and I can't switch back?) Eventually, I went to the CAB and was advised that as I had no assets and around £25K of debts that bankruptcy was the best option. I didn't have the advantage of the internet back then, or I might have been able to do more researce on the implications. I was led to believe that after the three year bankruptcy, it would be automatically discharged and I'd be able to start again. I must admit, at the time, it was a huge relief and a great weight off my shoulders. I was worried people would find out, but actually, none of my friends or associates ever did. I even remember how great it was to see the look of dissapointment on a baliff's face when his mission to reposses something was thwarted by my waving the bankruptcy order at him :-) ... bliss! (ok, I know he was just making a living, but he was a rather nasty character) Anyway, all went well for the three years; I managed to open a savings account with RBS that allowed direct debits, a cash card and cheque book (no guarentee card or overdraft though). On the work front, the F&M and bankruptcy did me a favour in a perverse sort of way, as I ended up settling in a good job as a self employed farm manager with a lovely farmhouse and good money (for the agricultural sector).
It was only after the three years was up and I was discharged when I started to realise that the bankruptcy was going to be with me for years to come. First off, although discharged, I hadn't been told that to get it cleared off my record, I'd need a certificate of discharge (£60). Ok, you don't "need" it, but the ref agencies require it to mark your record as disharged. Secondly, my bank would not allow me to upgrade to a current account for reasons they keep to themselves. And thirdly, I didn't realise that many of the defaulted accounts still showed as active on my record. To show them as settled, required writing to each creditor and asking them to inform the referance agencies.
Still, at least after six years, it would all be OK!
Well now my six years has passed and the bankruptcy has been taken of my reports. However, I still can't get my bank to upgrade my savings account to a current one. The next bit is cut and pasted from my post in another thread .....
"I just wish they'd say if I haven't a hope rather than the "try again in six months" line! I'd also love a proper explaination of why not, but that's unlikely. I've had a Gold deposit and instant access saver accounts with RBS since bankruptcy in 2001. In that time I've passed some £180,000 through their hands and run perfect accounts with not one slip! They see and acknowledge regular income and well run accounts, and say they sympathise with my reason for bankruptcy in the first place (Foot and Mouth). All three credit ref agencies now, do not show my bankruptcy and only one defaulted (but settled) account for £466 still shows (and only on Experian). Of course my rating is still poor as I now have no accounts showing, but electoral roll, searches, ect ect are all very good. With a proven track record of six years you'd think a standard current account without overdraft would be offered, but no!"
That's my story ... So beware.!
What now? What bank would be most likely to give me a simple debit card only current account? I do not need or desire credit, but I would like to be able to access my OWN MONEY with ease! I did discover the prepayed credit card way of paying, but it's a pain to top up! I like the security of the PP card, but would like a debit card for general shopping ect rather than just using cash all the time. I have applied for an Argos store card, which if I get I'll use to get the kids Xmas presents. I don't need it, but I figure that if I pay it off over three months, it may help improve my rating?
I don't own a house, I have five kids and earn around £30,000 before tax. I don't pay rent or rates as I'm in a tied agricultural property. I'm self employed which also doesn't help, but I have been self employed for the 25 years since I left college and do not want to change now. I consider myself very credit worthy as apart from the F&M debacle, I'd never had problems paying debts before or after. I've never claimed unemployment, I've worked hard and payed my taxes all my working life. However, I now feel that I'm never going to be considered anything more than an ex-bankrupt!
In an effort to get the best advice, I've cut and pasted my credit reports (minus personal info) below .... Any suggestions would be very much appreciated!
Time on the Electoral Roll5 years 1 month
Public InformationMatched at your current address Active Insolvency?NNumber of Insolvencies0Number of Active County Court Judgments 0Number of Satisfied County Court Judgments 0
Financial AccountsNumber of Financial Accounts0Number of Defaults0Notices of Correction0Notices of Dispute0
Credit Search HistorySearches in last 12 months8
Links/Associations/AliasesNumber of Address Links1Number of Associations0Number of Aliases0
Fraud Warnings/CIFASCIFAS Filing Held Y/NN
The 8 searches are actually my searches except one from BT, so a creditor would see just one. The linked address is my old one from before bankruptcy, and shows no problems.
Equifax ...
Financial Associates
Associate Information
No Data Present
Alias Information
No Data Present
Summary
CurrentPrevious 1Previous 2ConfirmedYes N/A N/A Length of Time on Electoral Roll4 yearsN/A N/A
Accounts Summary
CurrentPreviousNumber of Accounts1n/a Number of Defaultsn/a n/a
Court Information and other public records
Summary
CurrentPreviousNumber Presentn/a n/a
Previous Searches
Summary
CurrentPreviousCredit Searches in Last 6 Months2n/a
I won't post the Experian one as it says more or less the same, but is full of advice paragraphs ect that make it very long!
There you have it! Sorry it's sooooo longggggggggg!
FUWB's