Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will take steps to reform personal insolvency to make it easier for people who have been the subject of either bankruptcy or a Debt Relief Order to obtain a better credit rating afterwards.

The Government believes it is important that lenders act responsibly when deciding whether to grant credit, including checking the consumer’s ability to repay. Most lenders use Credit Reference Agencies (CRAs) to do this.

Adverse information, such as details of bankruptcy or Debt Relief Orders, is normally held on a consumer’s credit report for six years. Details automatically disappear after this time has elapsed.

Consumers can add a Notice to their credit report explaining any special circumstances which led to their financial difficulty and explaining how their situation has changed. A lender should take this into account when making lending decisions.