Life after Personal Insolvency

While insolvency will have an immediate effect on your present, it can also have an effect on your future. Have you ever considered what happens during life after Insolvency? Below we’ve listed what to expect.

What happens after discharge from bankruptcy?

After you have been discharged from bankruptcy, your name will be recorded on the National Personal Insolvency Index and public record (NPII) as a discharged bankrupt. Unfortunately this is a permanent listing. Your credit file however will be restored 5 years after your bankruptcy commenced.

How will my future look in life after bankruptcy?

There will be many limits in life after bankruptcy:

  • You may find it difficult to borrow money as your credit file will not be restored for 5 years after your bankruptcy commenced.
  • You will remain responsible for debts incurred after bankruptcy.
  • You will remain responsible for certain debts before bankruptcy such as HECS, HELP, SFSS.

Can my status as a bankrupt or a discharged bankrupt be removed?

It is possible to cancel your bankruptcy early.  It is called an annulment and there are there are three ways that you can achieve an annulment:

  • Put a proposal to your creditors and they agree to accept an arrangement whereby they receive a payment which is less than full payment; or
  • Pay all of your debts in full; or
  • Obtain a Court order to annul your bankruptcy.

If you would like expert advice on personal bankruptcy, please call our friendly staff on 1800 003 883.


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