Life after Bankruptcy

Chthonic on 07/06/2018 - 14:54

I was declared bankrupt on the 14th of Jan 2016. Won't go into too much detail but it involved an extremely ugly breakup, foreclosure on the house and a debt of $150,000+ in my early 20's.

I am discharged on the 15th of Jan 2019 and am obviously wanting to somehow fix or at least improve my credit rating. Does anyone have any advice on the best way to move forward once I am discharged?

I have been saving quite well from the start of this year, so if this continues 2018 will look really good in terms of my ability to save. I have a decent job and the only thing I can really think of is that I've been renting the same house for several years and have never missed a payment (if that helps and is relevant).

Looking for any general or specific advice from people in the know or who have gone through this themselves.

Cheers
Chthonic

Financial

Comments

  • dcep on 07/06/2018 - 15:13

    how's love & trust going ?

  • Detective Pikachu on 07/06/2018 - 15:17
    +4

    I think the following is applicable to your situation:

    Source:

    Can I apply for credit?

    There’s no restriction on applying for credit after your bankruptcy ends. It’s up to the credit provider to decide if they will lend you money.

    You should be aware, however that your credit report will continue to show your bankruptcy for either:

    • 2 years from when your bankruptcy ends or
    • 5 years from the date you became bankrupt (whichever is later).

    Also, it might be worthwhile applying for a discharge letter confirming your bankruptcy status from AFSA.

    • kipps on 07/06/2018 - 18:33
      +1

      This. If I were you I would wait a bit before applying for credit. You’re unlikely to get it for a while anyway.

      Upon discharge you no longer have to tell them you’re bankrupt when applying for credit.

      Give it time for defaults and enquiries to drop off your credit file. The bankruptcy will disappear after long enough. Your bankruptcy will then only really be apparent from NPII searches (which few will do as it costs money) or court searches (if you became bankrupt by sequestration order).

      Order your free credit files from the major providers (Can’t remember their current names. Likely Equixfax and Dunn & Bradstreet).

      Telstra was one of the most lenient phone providers to former bankrupts at least a few years ago. Or at least that was my impression. Build up credit slowly.

      For what it’s worth, bankruptcy sounded like the right option for you. It would have been much worse trying to get ahead with debts like that to pay out.

      All the best!

      • Chthonic on 08/06/2018 - 09:59

        Thank you both for the info :)

  • Quantumcat on 07/06/2018 - 15:26
    +24

    Wow, I have no advice but want to extend my sympathy!!! Sounds like it was brutal!

  • KayKay318 on 07/06/2018 - 16:23

    i personally subscribe to these folks at creditsavvy.com.au they send me my credit score which i tend to look at every few months. just couple of weeks ago my credit score took a dip after getting 2 new balance transfer credit cards.

    you should follow their guides written and see how can you start from there.

    Perhaps Start very small simply by establishing minute loans on those interest free purchases on Electronics, Appliances, demonstrate to Telcos, utilities etc that you could be reliable in sticking to payment due dates.

  • [Deactivated] on 07/06/2018 - 16:53

    Was your partner declared bankrupt as well or just you?

    Just curious.

    • Chthonic on 08/06/2018 - 07:04

      I honestly have no idea but I would say so, at the time she was earning considerably less than me and wasn’t very good with money. She essentially refused to cooperate with selling the place, dragged everything out - played the battered wife and threatened that if I tried to get my stuff she would call the cops and say I abused her (which was not true). Lawyers ended up getting involved and it was all very messy, it was actually a lot of relief once the house was gone and I declared bankruptcy and I knew I wouldn’t have to worry about it or what she was going to do next.

      • TheBilly on 08/06/2018 - 09:01

        Was there infidelity involved? Sounds like a real shitty situation to be in. Sorry to hear.

        • Chthonic on 08/06/2018 - 09:58
          +1

          From my end no, from her end - absolutely no idea.

  • MathNerd on 11/06/2018 - 07:06

    Oh gosh, what a read.
    Sorry to hear OP.
    Best wishes as you move forward from this.

  • Slippery Fish on 11/06/2018 - 07:47

    It can be abit shit, my father just finished his. Your through the worst of it now so good for you :)!!

    If I was you I'd just be careful about the rules around your assets, dad use to talk about limits on what he could have…

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