The quick answer
There are two answers to approaching insolvency, recovering and rebuilding and it depends on whether you are a company owner or an individual.
With an individual it affects your credit rating for a long time but with a company you an just set up a new one with a clean credit rating.
In more detail
Individuals
If you are made bankrupt or enter into an IVA it will usually stay on your credit record for at least six years. If you are in this position you need to rebuild your credit record – but you will still have the ‘black mark’ on your record. The best you can do is make sure you do not default on any future payments, do not get any County Court Judgement, pay any credit card, bank loans, car loans or mortgages on time. A good relationship with your bank will help if they learn your history and trust you.
Some advisers recommend if you do not have any loans or credit cards to take some out and make sure you pay the loan/credit card back to help increase your score.
Companies
If your company goes into liquidation or enters into a CVA this will be registered at Companies House which is a public record. However unless you have made personal guarantees to the company creditors and default on these you may find it does not affect your credit rating at all. I do find that directors, as they usually have a different home address to a work address, find there are no adverse credit affects.
You can also start a new limited company at any time even in the same business sector – although there are restrictions on using the same or similar company name.
