The six-year credit file entry
The bankruptcy is added to your credit file with the credit reference agencies (Experian, Equifax, TransUnion) at the point of the bankruptcy order. It remains for six years from that date.
During those six years, mainstream lenders will decline most credit applications. Some subprime lenders will consider you at high rates.
The record is removed automatically at year six. Credit reference agencies then treat you as if the bankruptcy had never happened.
The £500 borrowing restriction
While you are in bankruptcy (the 12-month period between the order and discharge), you cannot borrow more than £500 from any single lender without telling them you are bankrupt.
This is a criminal offence if breached deliberately — not just a civil matter.
The restriction ends at discharge, though the practical difficulty of getting mainstream credit continues for the full six years.
Effect on existing credit
All existing unsecured credit accounts are closed by the lender on notification of the bankruptcy. This includes credit cards, overdrafts, personal loans and store cards.
Your current account may be closed too, particularly if you had an overdraft with that bank. Basic bank accounts remain available and cannot be refused solely on credit history.
Mortgages and other secured credit continue as long as you keep paying — but you cannot vary terms during bankruptcy.
The Individual Insolvency Register
While active (during the 12-month period), you appear on the public Individual Insolvency Register. Anyone can search this register by name.
The register entry is removed within three months of discharge. After discharge, the only public record is on your private credit file (visible to lenders only).
Rebuilding after bankruptcy
The rebuild starts at discharge. Options include: basic bank account, credit-builder credit card (some available specifically for post-bankruptcy customers), small amounts of on-time credit management.
By year 3-4 post-discharge, some mainstream lending becomes available at higher rates. By year 6 (when the record drops off), the rebuild is usually complete.
Being deliberate about credit management from the point of discharge speeds recovery. Rushing into new borrowing, or accumulating new defaults, delays the rebuild significantly.