The question of what is still in the credit record after the debt relief and what impact the credit record entry has after life after bankruptcy is quite justified and is asked by many consumers. Because personal bankruptcy is not a thing that can be easily wiped away. At the latest, a look at credit record makes that clear. Is the credit record entry with the claims for bankruptcy proceedings simply deleted? In this article you will learn everything about what will happen to your credit record after the debt relief.
How long is the negative entry in the credit record after the debt relief?
After the debt relief from insolvency, you are free of debt as a former debtor. Among other things, this means that all liabilities that were taken into bankruptcy are finally rid of. However, new liabilities that have arisen after the bankruptcy must be paid on time.
The current entry on the bankruptcy remains however at least three years in the credit record . The entry on the bankruptcy is always deleted on December 31. of the calendar year. If the remaining debt relief was pronounced in January 2020, the corresponding entry in the credit record will only be deleted on December 31, 2024. A long time that ensures that, despite being debt-free, everything does not go as smoothly as many consumers would like.
Still, there is a big relief. Because even if credit record is still burdened by the entry after the debt relief, it means that all other negative characteristics in the form of a credit record entry were deleted after the bankruptcy. And it also means that there are no more outstanding claims.
What happens to the creditor claims at credit record after the bankruptcy procedure?
The creditor claims that were an issue in the context of the insolvency proceedings will be deleted from credit record after the residual debt relief. Only the entry about bankruptcy remains.
Some creditors do not always take care of the deletion directly. For the former debtor, it is therefore advisable to query credit record free of charge after the discharge of the remaining debt and to check which entries are included. This self-control helps with the cleanup and reveals any incorrect entries that unnecessarily burden the credit record score and paint a negative picture of the former debtor.
What happens to claims that have arisen after the bankruptcy proceedings?
Claims that arose after the bankruptcy procedure must be paid by the consumer. And on time and without compromise, so that the claims do not become debts. In the context of bankruptcy, only the claims that were listed when filing the bankruptcy application are taken into account. Claims that arise later are not taken into account in the bankruptcy and can therefore also be reflected negatively in the credit record after the residual debt relief. In order not to get back into debt spiral here and reduce the score unnecessarily, such claims should be settled directly.
Our note: As long as credit record has noted the entry for bankruptcy after the debt relief, you are usually not yet creditworthy. Buying in installments or taking out a loan is usually difficult. The only thing left is to apply for a loan without credit record, which is usually a little more expensive.
Apply for a credit record solution to the creditors’ claims after the debt relief
In the case of claims by creditors that have not yet been deleted from credit record after the discharge of residual debt, credit record can apply for the deletion. For this, the person concerned has the opportunity to query his credit record free of charge and without obligation. This is possible online.
credit record then sends an extract by post to all entries that have been stored for this consumer in credit record. If the entries are checked and there are creditor claims that have not yet been deleted, the request for deletion can be requested from credit record. For this, however, credit record needs documents on the claims and a reason why deletion is justified. If there is a need for advice in this regard, important information can be found on the credit record website or obtained from a credit record branch or a lawyer as well as a counseling center.