Credit Cards and Bankruptcy

Bankruptcy Discharge

A Bankruptcy Discharge means you are no longer bankrupt as you are now released from liability for your bankruptcy debts, though this only applies to certain debts.

Non-bankruptcy debts include:

• Debts incurred by fraud or fraudulent breach of trust
• Damages payable to anyone for personal injuries
• Debts created after the bankruptcy order
• Certain benefits and tax credit overpayments
• Any liability in respect of a fine or security entered into before a court
• Liability in respect of a confiscation order
• Money owed under family proceedings
• Student loans, including those who entered into on or after 1st September 2004

Please contact us if you require further assistance with whether you can obtain a bankruptcy discharge. 

Credit Before a Bankruptcy Discharge

If you are bankrupt and have not yet been discharged from bankruptcy, you must declare your status as an undischarged bankrupt to any lender you aim to borrow more than £500 in credit - there is no limit in borrowing as long as you declare your status as an undischarged bankrupt. If you do not declare your status, it is a criminal offence. 

Credit After a Bankruptcy Discharge

Once the bankruptcy is discharged, often after 12 months, there will be no obligation on you to declare to a lender of your bankruptcy status, though it may affect whether lenders lend to you due to having a former bankruptcy. This can affect your chances of getting a loan for up to 6 years as the bankruptcy is visible on your credit report. Following the terms of your bankruptcy order and keeping up with repayments on any debts will help you in the process of recovering your credit rating. At Diznabi Capital, we can provide a personal budget plan to keep track of your spending and ensure you pay back what you have borrowed.