Defaulted accounts included in Bankruptcy

Does anyone know the “general” rule of accounts that where in default prior to bankruptcy and included in the bankruptcy take to close?

I understand that defaults take 6/7 years as standard to come off the report, I was discharged from bankruptcy December 2018 but still have accounts that are reporting as default, and showing as a long term debt on some CRA’s and therefore using over 100% of my credit utilisation.

I take it I may need to contact the companies in question to ask why still reporting as default and why not closed?

Hi @Juggy69 :wave:

From my experience in the insolvency industry, it will take around 6 years from the most recent default to be removed from your credit file unfortunately.

If you’ve completed bankruptcy then the arrangement should be marked as complete which is what lenders will be able to see, however if there are defaults you believe to be unfair (e.g. defaults registered after being discharged from bankruptcy) you may be able to dispute it with the credit reference agency.

If some debts are still showing as active/having a balance, you will likely need to raise a dispute with the CRAs to get them to update your file correctly.

Hope this helps :grin:

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So regardless of what I see in a CRA, lenders would see it as completed even though the companies still even now 18 months after discharge as being default monthly?


If defaults are still being lodged on your credit file after discharge, I would still recommend disputing these because lenders will worry why there’s a conflict between a default and a completed bankruptcy.

Okies cheers

The default dates should be no later than the date your bankruptcy started (if a some are only a month or 2 late you have to balance the effort vs benefits of chasing for it to be changed). This way the default would fall off with your bankruptcy at the 6 year point

No they are still showing as defaulted on a monthly bases up to an including 31st Jan 2020 effectively nearly 3years after the bankruptcy started

The debt can only be defaulted the once. What I suspect your seeing is updates showing the account is still in default.

You should contact each creditor and ask that they show the defaults as satisfied or partially satisfied, and close the accounts. The default date should be the date of bankruptcy or before

Just signed up to Credit wise by Equifax with Capital One.

Every account that’s was defaulted prior to bankruptcy is now showing as being closed/settled within a few months or on the date the bankruptcy started.

Credit Karma are so wrong.

Hopefully your aware anyway, but incase your not. You have 3 credit file

Experian - you can get free access through moneysavingexpert
Equifax - you can get free access through clearscore
Transunion(was call credit) - a few places give free access credit karma being one

Hopefully your creditors are going to update all three, but often they forget or have systems issues updating one. You should check all three and follow up if any of them are wrong

Yep will start contacting them Monday

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Good support, chaps :slightly_smiling_face: