Life after bankruptcy

In most cases, bankruptcy lasts for 12 months. When it ends, any debts included in the bankruptcy will be written off and you are officially released from the legal restrictions (unless a bankruptcy restrictions order (BRO) or bankruptcy restrictions undertaking (BRU) has been made). This is known as being discharged from bankruptcy.

You won't get formal proof your bankruptcy has ended unless you ask for it.

If you want confirmation, you can email the Insolvency Service for a free letter after your discharge date. 

If you’re paying into an income payment agreement, your payments might continue for up to three years after you’ve been discharged from bankruptcy. 

During bankruptcy, you can't borrow over £500 without telling the lender you’re bankrupt.

Many lenders will hesitate to approve your application once they learn this.

When your bankruptcy is over, you can apply for new credit but it may still be tough to find lenders willing to lend to you, especially while the bankruptcy remains on your credit file.

Bankruptcy will usually stay on your credit file for six years. 

Even after six years, you might still ask if you’ve ever been bankrupt when applying for some kinds of credit or certain jobs. 

If a BRO or BRU has been made against you, bankruptcy will stay on your file credit file for the length of the BRO or BRU.

The first step to rebuilding your rating after bankruptcy is to review your credit report. 

Look for any mistakes or incorrect information. If you spot any errors, report them to the credit reference agencies (Equifax, Experian and TransUnion). 

Correcting these errors can help improve your score.

Other steps that may help include:

• making sure you’re registered to vote
• borrowing small amounts of credit and repaying in full each month
• paying all bills on time 

Get more tips on improving your credit rating.