How to Recover from Bankruptcy

How to Recover from Bankruptcy

If you are currently bankrupt and want to start planning for your future, here’s how you can recover from the bankruptcy process and start a new life. It is important to realise that your mindset will impact you as much as your ability to act. You have already made it through some tough financial times, so you know that bankruptcy is not the end of the world. Follow these tips to get back on your feet after you have filed for bankruptcy.

Get your credit back on track

Check your credit file at least once a year to help rebuild your credit history. There are three credit reporting companies in Australia that can provide you with one free credit report each year:

  1. Equifax
  2. Experian
  3. Illion


If you find any mistakes on your credit report, contact the credit reporting agency to file a dispute. Because your credit file has an impact on your future loan eligibility, such as mortgages, you’ll want to make sure that it’s up to date. Make a realistic budget and begin restoring your credit by paying your expenses on time.

Work with your trustee

Follow the bankruptcy procedure and work with your bankruptcy trustee as much as possible. A bankruptcy trustee is a person who oversees the administration of your case. Your trustee will need to know about your earnings, assets, and liabilities. Your creditors will be notified of your bankruptcy by your trustee. They may be able to assist you with selling your assets to pay off your obligations. If you earn more than a particular amount, you may be required to make mandatory repayments; be sure to follow these rules.

Don’t take a loan until you’re free from bankruptcy

While you may apply for loans while in bankruptcy, it’s advisable to keep your borrowing to a minimum until you can live within your means while paying off new debt. If you need a loan, make sure you can afford to pay it back. Submitting numerous applications should be avoided whenever possible. Your loan applications will appear on your credit report, and they can have an impact on your credit score.

Begin saving money

Saving is an important part of the recovery process because your finances were most likely depleted when you filed for bankruptcy. Pay yourself first, then save for emergencies and unforeseen circumstances. Saving even 5% of your paycheck can quickly add up.

If you’ve filed for bankruptcy, you know that severe financial problems don’t go away quickly. Recovering from a financial setback might take years, but if you stick to a budget and set financial goals, you can achieve it. For more information about bankruptcy, please call our friendly and professional bankruptcy consultants on 1800 462 767. Our bankruptcy hot-line is open 24/7 including weekends.




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