How Sequestration affects your credit rating

A record that you have started sequestration (bankruptcy) will be listed on your credit file. This will have a negative effect on your credit rating and make it difficult for you to borrow money.

The record of your bankruptcy will remain on your credit file for 6 years. Your credit rating will not start to significantly improve until this time has passed and the record of your bankruptcy has been taken off your file.

In addition to the record in your credit file, a record of your bankruptcy will be included in the Edinburgh Gazette. This record will always remain in the Gazette archives which are publically accessible via the internet.

You should also remember that after you have been declared bankrupt you will stop making your normal monthly payments to your creditors. This means that your accounts will go into arrears or further into arrears. As a result of this your creditors are likely to issue you with default notices which will also be recorded on your credit file for 6 years.

Remember if you are insolvent and considering Sequestration, your credit rating is likely to become worse whether you start the solution or not. If you are in a position where you cannot pay your debts you are likely to start missing payments to your creditors even if you do not go bankrupt. As a result your credit rating will be negatively affected with missed payment and default notice records anyway.

If you start sequestration or any other debt management solution you have the opportunity to get your debts under control and work towards getting a better credit rating in the future.

Additional information

Only a brief overview of how Sequestration might affect your credit rating is given above. More information can be found here: Debt Solutions & Credit Rating

Take action

Read more – Our debt experts have written thousands of articles about solving personal debt problems. Read some of these to find more about which debt solution is best for you.

Ask our online experts – We have debt experts on hand to provide unbiased, accurate advice. Ask your questions in one of our debt forums, via our live chat facilities or by traditional email.

Call us direct on 0844 544 8850 – All conversations with our expert advisors are held in the strictest confidence.

Print Friendly, PDF & Email

Arrange a call with a Debt Expert

    Need Help and Assistance with Debt?

    Privacy Policy Your information will be held in strictest confidence and used to contact you by our internal team only. We will never share your details with any third party without your permission.