Discharged from bankruptcy?

In normal cases, you are discharged from your bankruptcy automatically after completion of one year of your bankruptcy. But in many cases, you may not get an automatic discharge from your bankruptcy. Here are the few cases when you may not be discharged from your bankruptcy automatically:
When you fail to co-operate with your Official Receiver and because of this your discharge period may have been suspended.
Your bankruptcy falls within the purview of criminal bankruptcy.
Records of bankruptcy discharge

When you are discharged from bankruptcy, in most cases, the credit referencing agencies make note of the fact and maintain a record of the people discharged from bankruptcy. But if you go to any financial institution for any finance related services, they may still demand a bankruptcy discharge certificate from you.

In an early discharge possible?

You can be discharged early but it depends mostly on your Official Receiver. If the Official Receiver feels that you have been unnecessarily subjected to an investigation, he may file a report in the court that the investigation into your bankruptcy affairs is unnecessary and hence be concluded. However, the trustee and the creditors can be given opportunity to file an objection against the Official Receiver’s this move.

Suspension of discharge

If you fail to abide by your obligations, it may bring a suspension to your discharge. In such a case, either your Official Receiver or the trustee may request the court to suspend your discharge. This suspension of discharge can be either for a specified period of time or can be for an indefinite period till then a certain obligation is met.

Certificate of discharge from bankruptcy

Following your discharge from bankruptcy, a certificate of bankruptcy discharge is issued. You can approach the court that had passed bankruptcy order on you and request for the certificate. By paying a small fee, you can obtain a discharge certificate.

Co-operation with the trustee or the Official Receiver after your discharge

Even if you have been discharged from bankruptcy, you need to co-operate with your Official Receiver or trustee. Even after your discharge from bankruptcy, bankruptcy estate can remain under the administration of the Official Receiver or the trustee.

Getting credit after being discharged from bankruptcy

Even if you have been discharged from bankruptcy, it will not be easier for you to get credit in the market. In UK, it will be challenging to obtain credit with a number of financial services after your discharge from bankruptcy. Most creditors will show little interest in lending you because of your previous bankruptcy history.

In order to avail credit after bankruptcy discharge, you may have to go for credit repairing. With a better credit score, you may win the trust of the creditors. If you want to apply for a credit card, a credit card company will be more willing to offer you a prepaid credit card. This way the credit card company wants to keep its money secured.

Getting a credit card

After being discharged from bankruptcy, you need to prove your credit worthiness in the market. In order to rebuild your damaged credit, you need to show that you have the ability to return the borrowed money. But after a bankruptcy discharge, you may not get that kind of credit card offers that you usually use to get before your bankruptcy. After bankruptcy discharge you may get credit cards with high interest rates only.

Just after your bankruptcy, you may have to be contented with bad credit cards only. So, make sure, you have carefully read all the terms and conditions before accepting a credit card. See carefully what fees you are going to be charged and what interest rates you will have to pay.

Getting a secured credit card

In majority of cases, a person may be denied a regular card after he is discharged from bankruptcy. Secured credit cards can be more easily allowed to a person who has been discharged from bankruptcy recently. In order to get a secured card, you will have to open a savings account with the creditor. The amount deposited in your savings account will determine the credit limit on your secured credit card. This protects the money of the credit card issuing company, if you fail to pay their balances.

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