Whilst bankrupt you may only apply for credit up to the statutory limit $5,301 (current as at March 2014) .

If you apply for credit above this amount $5,301 (current as at March 2014) then you must disclose to the credit provider that you are bankrupt. If you fail to disclose your status as a bankrupt and apply for credit more than this amount then you will commit a criminal offence under the Bankruptcy Act and you could be prosecuted.

Your Trustee in Bankruptcy could also object to your automatic discharge which could also result in your bankruptcy term being extended up to a total of 5 years (ie an additional 2 years after the standard 3 year bankruptcy term).

Disclosing your bankruptcy status to the proposed credit provider does not guarantee that your credit application will be successful as it will be at the discretion of your credit provider to accept your application.

It is also important to note that whilst you are an un-discharged bankrupt you cannot purchase any assets regardless of the value, otherwise that asset will vest in your Trustee in Bankruptcy as “after acquired property”, therefore, a bankrupt should not apply for credit to purchase any asset.

Tagged → credit in bankruptcy, Credit whilst bankrupt