Bankruptcy should be considered as a last resort to deal with unmanageable debt.

The effects of bankruptcy last long after you’ve been discharged and can put severe restrictions on what you can borrow in the future.

Your bankruptcy history will be recorded on commercial credit database for a period of seven (7) years from the date of your bankruptcy and therefore if you apply for finance in the years following discharge you will need to prove yourself to potential lenders as a worthy applicant for finance.

This can be done by opening new accounts and paying all bills on time. Over time this will help establish a new credit history.

However, if you have been bankrupt in the last 7 years, please be aware that lenders will complete a credit check before approving any loan and as such your bankruptcy status will be known. For that reason we stress to people that they need to carefully complete finance applications and truthfully disclose any bankruptcy history. Even if it was more than 7 years ago it is best to fully disclose your bankruptcy history and the financier can assess the relevance of it.

Unfortunately, we have observed that even when you have been discharged from bankruptcy, there will still be some organisations that decline your finance application or refuse to lend you money based on your bankruptcy history.
Whilst it will definitely be more difficult to borrow money after bankruptcy, we encourage our clients to remain positive and work hard towards building a new credit.

If you or your spouse are contemplating bankruptcy and you want to understand if you can borrow after bankruptcy, then call the Australian Bankruptcy Service today on 1800 462 767 to discuss your options.

All calls are free, entirely confidential and if required, anonymous.