Bankrupt and blacklisted

By THIS IS MONEY
Updated:

 

I am applying for bankruptcy. I live with my parents and have no assets at all. If I declare myself bankrupt will it have an effect on them? My parents are concerned that their address will be 'black-listed'. WB, Brighton

Angelique Ruzicka from This Is Money says:

'IF your parents apply for credit after you have declared yourself bankrupt, lenders may still refuse them as you live with them.

'But the good news is that this rule will not apply for long. By the end of this year, all lenders will change to a new system whereby people will be assessed only on their individual financial situations. It will mean that anyone living with you will no longer have an impact on your credit score.

'Until then, your parents should get a copy of their credit report to check if they have any financial links with you. They can obtain the report from credit reference agencies such as Experian and Equifax. It will only cost them £2 if they apply for it in writing or online through This Is Money.

'If they find that their finances are linked with yours they should ensure that they terminate any joint accounts they have with you. Following this, they should then apply for a 'financial disassociation' form, which can also be obtained from the above credit agencies. This document will inform the credit agencies that your parent's finances are no longer linked with yours. They can request this form in writing or fill it out online.

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