How Long Does a Bankruptcy Stay on Your Credit Score

How Long Does a Bankruptcy Stay on Your Credit Score

Bankruptcy is a serious financial step that can offer relief to those overwhelmed by debt — but it also comes with long-lasting consequences for your credit file. If you’ve been declared bankrupt or are considering it, one of the most common concerns is how long it will stay on your credit report and affect your ability to borrow in the future.

In the UK, bankruptcy stays on your credit report for six years, regardless of how long your bankruptcy itself lasts. During this time, it can significantly impact your credit score and make it harder to access credit, loans, mortgages or even certain job opportunities.

In this article, we’ll explain exactly how long bankruptcy stays on your credit file, how it affects your credit score, what happens after six years, and what you can do to start rebuilding your financial reputation.

What Is Bankruptcy

Bankruptcy is a legal process that writes off debts you can’t afford to repay. It’s typically a last resort for individuals who have tried other debt solutions, such as Individual Voluntary Arrangements (IVAs), Debt Relief Orders (DROs) or informal payment plans.

In England, Wales and Northern Ireland, you can apply for bankruptcy online through the Insolvency Service. In Scotland, the process is known as sequestration and is handled separately by the Accountant in Bankruptcy.

Once declared bankrupt:

• Your assets may be sold to repay creditors

• You’re subject to restrictions, such as not borrowing over £500 without disclosing your bankruptcy

• You’re usually discharged after 12 months

• The bankruptcy is recorded on the Individual Insolvency Register

How Long Does Bankruptcy Stay on Your Credit File

Bankruptcy stays on your credit file for six years from the date it was issued, not from the date you're discharged. This means:

• Even if you’re discharged after one year, the bankruptcy will remain visible for another five

• It will be listed on your credit reports held by Experian, Equifax and TransUnion

• Your credit score is likely to be significantly lower during this time

After six years, the bankruptcy entry is automatically removed from your credit report, regardless of whether you've been discharged earlier or not.

Does the Bankruptcy Discharge Affect the Timeline

No. While you are usually discharged from bankruptcy after 12 months, the entry remains on your credit report for six full years from the date the bankruptcy started. This applies even if your bankruptcy is extended due to non-cooperation or other issues.

However, being discharged does allow you to begin rebuilding your credit more actively, even while the record is still visible.

How Does Bankruptcy Affect Your Credit Score

A bankruptcy has one of the most severe impacts on your credit score. It tells lenders that you have previously been unable to repay debts, making you a high-risk borrower. The effect includes:

• A large drop in your credit score

• Difficulty getting approved for credit cards, loans or mortgages

• Higher interest rates or lower limits if approved

• Rejection from landlords, insurers or employers who run credit checks

• Reduced eligibility for mobile phone contracts or utilities

Each credit reference agency has its own scoring system, but all treat bankruptcy as a major red flag. You may also find that lenders are more cautious with you even after the six-year mark if they request additional financial history.

What Happens After Bankruptcy Is Removed

Once the bankruptcy drops off your credit file after six years:

• Your credit score may begin to improve, especially if you’ve maintained good financial habits since your discharge

• You’ll no longer see the bankruptcy record on your credit report

• Lenders won’t be able to see the bankruptcy through standard credit checks

• You may be eligible for more mainstream credit products, though some lenders may still ask about past bankruptcies during applications

If the bankruptcy record is still showing after six years, you can contact the credit reference agencies to request its removal.

Rebuilding Your Credit After Bankruptcy

Although the impact is long-lasting, you can start rebuilding your credit even before the six years are up. Here’s how:

1. Check your credit report
Make sure all the details are accurate, and ensure that accounts included in the bankruptcy are marked as settled or partially settled.

2. Use a credit builder card
These cards are designed for people with poor credit. Keep your balance low and pay in full each month to show responsible borrowing.

3. Register on the electoral roll
Being listed at your current address helps verify your identity and improve your score.

4. Avoid applying for multiple credit products
Too many applications in a short time can further lower your score.

5. Make all future payments on time
Even small commitments like mobile phone bills or utility accounts count.

6. Keep credit utilisation low
If you have access to credit, aim to use less than 30% of your limit.

Real-World Example

James filed for bankruptcy in May 2018 and was discharged in May 2019. Although he was no longer bankrupt after one year, the bankruptcy remained on his credit report until May 2024. During that time, he had difficulty getting loans but gradually rebuilt his credit by using a prepaid credit builder card, paying bills on time, and avoiding new debt. When the bankruptcy dropped off his file, his credit score began to recover more quickly, and he was approved for a mainstream credit card later that year.

Final Thought

Bankruptcy stays on your credit report for six years from the date of declaration, and during this time, it can have a significant impact on your credit score and ability to borrow. However, once discharged, you can begin rebuilding your financial reputation — and with patience and discipline, your score will recover over time.

While bankruptcy can feel like a financial dead end, it’s often the first step toward a clean slate. The key is to use the post-bankruptcy period wisely, avoid further debt issues and demonstrate good money management to prepare for a stronger financial future.