Discharged bankrupt - credit file still shows balances ?

[2ltr16valve]

hi all

 

I wonder if you wonderful people can clarify something. 
My wife and I went bankrupt in June 19 and was both discharged in June 2020. 
 

on checking our credit files there are a few inconsistencies- incorrect default dates post bankruptcy date that should be changed but Just need to write to them. 
 

but a lot are still reporting a balance in default ? I thought that once discharged the debt no longer exists? 
 

thanks in advance. 

[dx100uk]

once a debt is defaulted and a defaulted date registered in the summary (on or before the BK date) it matters not what they report further

it can't harm your anymore

 

dx

 

[2ltr16valve]

thanks for the reply. 
 

I’m aware that once’s it’s defaulted that’s most damage it can do, but should they not reflect the account to £0 balance ?

[AndyOrch]

Both Bankruptcies and Sequestrations can be discharged after a year from the date of insolvency, at which point a copy of a discharge certificate issued by the court can then be sent to each creditor included in the bankruptcy order. Typically, this will mean that the relevant credit agreements will be marked as satisfied (or partially satisfied) along with the insolvency’s entry as discharged.

 

A common misconception associated with insolvencies is that the accounts included in the order are removed once the insolvency’s expiry date has been reached however this is not quite true. Once an account has included in an insolvency, lenders mark the accounts as defaulted, however there can be some variation in how soon lenders report the default status. Defaulted accounts are reported for 6 years from the date of default so there can therefore be a delay in the accounts dropping off a credit even when the insolvency they were included in is no longer visible on the file.

[dx100uk]

and ofcourse the BK is on your file for 6yrs anyway...

[Will Goodfellow]

Where the default date is later than the date of the bankruptcy order, you should ask creditors to amend the default entry to that date:

 

Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies pg 7:

 

"The default date must be consistent with that of the CCJ/bankruptcy or IVA; therefore a default should be filed as being no later than the date of the insolvency order. In circumstances where the lender is not immediately aware, the default can be filed at that point in time. If evidence of the insolvency date is provided, the default date recorded at the CRA will be aligned."

 

Any debts include in the order should be marked as partially settled - Pg 8:

 

"Your record should be closed and marked as partially settled if:

 

 - Your account is included in an insolvency such as a bankruptcy or IVA which is discharged / completed and less than the full amount is paid"

 

http://www.scoronline.co.uk/sites/default/files/High Level Prinicples Document Version 2 final.pdf

 

Again, contact creditors where that is not the case and ask for the record to be amended.

 

 

[dx100uk]

1 hour ago, 2ltr16valve said:

on checking our credit files there are a few inconsistencies- incorrect default dates post bankruptcy date that should be changed but Just need to write to them.