A credit report contains information that is held at credit reference agencies and is compiled using two main sources of information from Public records (Electoral Role, Court Judgements, IVAs and Bankruptcies) and information provided by lenders and financial institutions (Credit Accounts, Credit Applications and Financial Associations).
The information that is on your credit file has a bearing on whether or not you are accepted by a lender, how much a lender is willing to lend you and the interest rate that is offered to you.
There are other things that are taken into account in regards to lending decisions when applying for credit such as the information that you put down on the application form; but your credit file does play a big part in the decision making for the company that you are applying to.
Under data protection, you have the right to view the information contained in your credit report to make sure the information held about you is true and accurate. If errors are found you are entitled to have them corrected.
It could be that bankruptcy is the most suitable debt solution for you.
You may hear that bankruptcy should be considered a last resort, and that you should try an IVA (Individual Voluntary Arrangement), IPP (Informal Payment Plan) or DMP (Debt Management Plan) first, but this isn't always suitable. What's right for you depends entirely on your circumstances as these are all solutions to the same problem, but tackled differently.
You may find that you would benefit from professional help in completing your Statement of Affairs and Bankruptcy Petition.
From the time that you decide to apply for a bankruptcy order, to the day that you are declared bankrupt, you may seek assistance in order to keep your creditors and bailiffs at bay. In addition, performing your own research into bankruptcy often results in receiving conflicting information, depending on the source(s).
Personal bankruptcy for Scottish residents is called Sequestration.
To be sequestrated you must owe at least £1,500 and either: one or more of your creditors must have taken you to court to enforce or demand you repay a debt or you must have been on a debt payment programme under DAS that has been revoked and one of the creditors in the DPP have been to court and obtained a decree on one of the debts.
You are immediately free from debt and will not be responsible for any of your pre-existing debts.
It is a fresh start for you and your family to start again and build yourself up from a position of strength. You are immediately protected from all your creditors who form part of your bankruptcy.
Clear Insolvency is trading name of Hamilton and Clarke Ltd.
Registered in the UK. Company no. 6465374. Consumer Credit License (UK) 612841
Clear Insolvency, 27 Old Gloucester Street, London, WC1N 3AX
