MyCallcredit warns bankruptcy not the easy option
Credit report service MyCallcredit is warning people in debt only to file for bankruptcy as a last resort after an increase in bankruptcies fuelled by a change in rules which mean people think it will be discharged from their record after one year.
MyCallcredit director Alison Nicholson says:
"The number of bankruptcies has soared since changes to the rules were introduced in April 2004 but people need to know bankruptcy is not the easy way out.
"You can be discharged from bankruptcy after a year but a record of it stays on your credit file and will affect your ability to get any credit, including buying a home, for six years. It's not a one year quick fix then back to normal. People need to be aware of the ramifications and get advice about their debts from reputable sources, like the Citizens Advice Bureau."
People can monitor their credit report with MyCallcredit E-alerts service to see what information is held about them. MyCallcredit is offering a 30-day free trial of its credit management service, E-alerts plus a free credit report, for customers who log on to www.myfreecreditreport.co.uk.