Hi,

Hoping someone can help.

I declared myself bankrupt due to a huge change in income back in March 2011 and have since been discharged a few months ago. In order to clear up my credit file as soon as possible I've been looking at it in more detial through my credit report and monitoring a few things. Most creditors appear to have done the right thing and registered the correct information but one account concerns me.

Before my bankruptcy I had a car loan with Creation finance which got to be 6 months in arrears. Unfortunately Creation managed to get a charging order on my property before I was able to go bankrupt so this is the only debt I have outstanding. At the time I wasn't too concerned as it put my property well into negative equity and meant that the OR was unlikely to try and force sale of the property.

Once the charging order landed, Creation made clear that they would not try and force sale of my property and this was purely to secure their money. Upon looking at my credit file, they continue to register payments as 6 months late despite me now being 18 months behind, past the default and CCJ stage and the loan has now been secured.

My worry is that in 6 years time my credit file will be totally clear with the exception of creation who continue to register this loan as 6 months behind, whereas if it went to default status it would be off my file in 6 years regardless of if it has been paid up.

I intend to try and pay this back in time but cannot afford to at the moment. In future this could prevent me remortgaging or moving, at which point they would get their money, so it seems counter productive from their point of view as well.

My question is two-fold:

- Am I able to do anything about this secured loan given my bankruptcy and that it was originally unsecured, even though it was secured before my bankruptcy?
- Are Creation able to keep registering this data or should it now be at defualt stage on my credit file and, if so, what do I do about it?

Any advice would be much appreciated as I've tried searching everywhere but can't really get an answer and I'm trying to prevent my bankruptcy having an impact of longer than 6 years.

Kind Regards

Karl

Karl,

Secured debts, such as charging orders, are not included in bankruptcy; so any charging order stands even though you were made bankrupt.

If you were allowed to keep the property in bankruptcy, again, the charging order is now a secured debt, so it stands outside of bankruptcy.

As your credit history has to be an accurate picture of how you have paid the loans and what has occurred, then it would seem they are reporting this correctly.

I hope this helps.

Regards,

Jon

Hi Jon,

Thanks for the response.

Just to clarify then, all my other creditors recorded my debt as a default on my credit file as I was more than 8 months in arrears and so had broken my credit agreement. Should Creation not do the same given that the same thing occurred instead of registering me as in 6 months arrears every month?

Thanks,

Karl

Karl,

I am a bit unsure what you are stating/asking?

I cannot say how each creditor may or may not report an account, but the account is to be reported accurately as to how the account has been paid.

You can either contact the creditor in question and query this with them, or also contact the credit bureaus in question and provide them with any required documentation if you feel the account has been reported incorrectly.

Regards,

Jon