Until you’re discharged from your bankruptcy it’s against the law to borrow more than £500 from any lender without telling them you’re bankrupt. You don’t need to tell them if you’re borrowing less than this, but they’ll usually find out by credit-checking you.
Details of your bankruptcy will remain on your credit file for six years from the date the court makes you bankrupt. This means that your bankruptcy will continue to affect your credit rating for some years, even after you have been discharged from it.
Once you’re discharged from your bankruptcy there’s no legal limit on borrowing money but you’ll find it much harder. It’ll be difficult for you to apply for a loan or other credit, such as an overdraft, during the six-year period following your bankruptcy. You may be refused credit or charged a higher rate of interest because your bankruptcy makes you appear to be a bigger risk to lenders.
If your official receiver finds that you acted dishonestly or irresponsibly, they can apply a bankruptcy restriction undertaking (BRU) or order (BRO) which will extend some of the effects of your bankruptcy for up to 15 years. Although these are not common, if a BRU or BRO is applied, it’ll be recorded on your credit file until it ends, which could be longer than the normal six years.
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