Life after Debt and Bankruptcy

What happens after Bankruptcy is one of the most common questions we get asked. The simplest answer is you become debt free and are able to learn the lessons of what not to do and rebuild your life.

You are generally discharged from Bankruptcy after 12 months at which stage your debt history will be cleared. You are freed of all of the restrictions placed on you unless subject to a bankruptcy restrictions order or bankruptcy restrictions undertaking.

Credit after Bankruptcy

Once discharged you are able to rebuild your credit file. Don't be fooled though, it is not as easy to get credit after being Bankrupt. It is not impossible but you have to understand you are a higher risk to lenders as you have previously been declared Bankrupt.

Don't despair though there are lenders available that can help. You generally have to pay a higher interest rate or pay a larger deposit to get a mortgage but there are still options available.

Homes and Assets after Bankruptcy

Any new assets you buy will generally be owned by you. This includes a home, car or any other new assets you acquire.

Bank Accounts

If you don't have an existing bank account you can get an account depending on what you require. Don't think about getting an overdraft in the short term as you have to rebuild your credit. This is something you can request afetr a while to see if you are eligable.

Pre-paid cards

The latest facilities can offer pre-paid cards which can help re-build your credit file. They may cost a monthly fee like the MASTERCARD XXXX where there is guaranteed acceptance, no credit checks, no bank account required, wages can be paid into it and you can also set up standing orders.

The key thing to remember is life really does continue after you are discharged, don't be embaressed, make the most of having a fresh start.