Looking Forward
So the dust has settled and your bankruptcy has been discharged, out of debt, starting out fresh, a new day, what is next?
This is the beginning of a new financial day for you, to learn from the past and to have had to live a year without credit and to know what that is like.
The main thing in re-establishing yourself is time; time and making sure you pay your priority bills in a timely fashion. The more time that passes from the discharge you become stronger in building things back up, also you need to pay your rent, mortgage (if you still have one) electric, gas, council, etc, all on time each month. This will help in rebuilding you financially.
The next step is for you to obtain a copy of the discharge from the court where you filed for bankruptcy. The court can charge you £60 for this discharge form. You can also request a copy from the Official Receiver in your bankruptcy for free if they have not already sent one to you. Send copies of the discharge to the (3) three credit bureaus, Call Credit, Experian and Equifax, so they can update your credit files. This will then show on your credit history that the bankruptcy has been discharged and you are out of bankruptcy.
If you need immediate access to a credit card to use for work and online transactions, get a Gold Prepaid MasterCard. Don't worry, since it is a prepaid card you can't be turned down even with your bankruptcy. Many say they need the card just to exist in a world that seems to function more on a swipe than on cash.
Since you are allowed a basic account whilst in bankruptcy, the next step is upgrade to a regular current account. and to inquire with a bank about setting up a savings account. Then once the account is open, make regular deposits into the savings account of whatever you can afford to save. This will show a regular pattern of savings in addition to helping you save a bit.
Once you have a current account and have shown responsibility with this you can request a small overdraft of £50 or £100, nothing large, and by then you should have a savings balance that exceeds this request. Once an overdraft is approved you are well on the way to being re-established after your bankruptcy. But what do you need credit for anyway? Possibly financing a car, although if you can save for one better yet, and also a mortgage to purchase a property if you do not already own one.
Initially, you may be required to pay a slightly higher interest rate for a mortgage as a discharged bankrupt, but much of that can depend on the amount of a deposit you have and many other factors as the market is changing constantly.
So now the new day and dawn have arrived and you are back on the road to being creditworthy. Let’s use what we have learned and experienced to better understand the credit machine and how not to get caught up in or by it.
This is the beginning of a new financial day for you, to learn from the past and to have had to live a year without credit and to know what that is like.
The main thing in re-establishing yourself is time; time and making sure you pay your priority bills in a timely fashion. The more time that passes from the discharge you become stronger in building things back up, also you need to pay your rent, mortgage (if you still have one) electric, gas, council, etc, all on time each month. This will help in rebuilding you financially.
The next step is for you to obtain a copy of the discharge from the court where you filed for bankruptcy. The court can charge you £60 for this discharge form. You can also request a copy from the Official Receiver in your bankruptcy for free if they have not already sent one to you. Send copies of the discharge to the (3) three credit bureaus, Call Credit, Experian and Equifax, so they can update your credit files. This will then show on your credit history that the bankruptcy has been discharged and you are out of bankruptcy.
If you need immediate access to a credit card to use for work and online transactions, get a Gold Prepaid MasterCard. Don't worry, since it is a prepaid card you can't be turned down even with your bankruptcy. Many say they need the card just to exist in a world that seems to function more on a swipe than on cash.
Since you are allowed a basic account whilst in bankruptcy, the next step is upgrade to a regular current account. and to inquire with a bank about setting up a savings account. Then once the account is open, make regular deposits into the savings account of whatever you can afford to save. This will show a regular pattern of savings in addition to helping you save a bit.
Once you have a current account and have shown responsibility with this you can request a small overdraft of £50 or £100, nothing large, and by then you should have a savings balance that exceeds this request. Once an overdraft is approved you are well on the way to being re-established after your bankruptcy. But what do you need credit for anyway? Possibly financing a car, although if you can save for one better yet, and also a mortgage to purchase a property if you do not already own one.
Initially, you may be required to pay a slightly higher interest rate for a mortgage as a discharged bankrupt, but much of that can depend on the amount of a deposit you have and many other factors as the market is changing constantly.
So now the new day and dawn have arrived and you are back on the road to being creditworthy. Let’s use what we have learned and experienced to better understand the credit machine and how not to get caught up in or by it.
