Bankruptcy & Credit

Will Bankruptcy Stop Me From Getting a Credit Card and Personal Loan in the Future?

No, but you will need to get your credit report back on track first.

When you become bankrupt, your bankruptcy is recorded on your credit record. It is normal for many people who become bankrupt to already have accumulated defaults on their credit record.

Defaults remain on your credit record for five years from when they are lodged. They progressively drop off as each default reaches its five-year anniversary.

Be aware that you can have defaults placed on your credit record while you are bankrupt. During your bankruptcy, it is important that your bills are paid on time to avoid further deterioration of your credit record.

Assuming you have no defaults during your bankruptcy, you will have a clear credit record five years after the commencement of your bankruptcy.

During bankruptcy, we recommend that you obtain a Debit Card to maintain the convenience of being able to buy goods online and make purchases while travelling.

From talking to the banks, the feedback we have received is that if you have a clear credit record and savings history, not only will it make it a lot easier for you to get a credit card and personal loan, it will also give you good footing to negotiate for a lower interest rate.

We recommend that you talk to your bank, discuss your circumstances and get them to tell you what you need to do to qualify for a competitive credit card and personal loan once you have been discharged from bankruptcy and repaired your credit record.

We are here to help. If you have any questions please give us a call on 1300 794 492 or email

Further Reading: We recommend our article How to improve your credit score when bankrupt which can be accessed here and our article, Getting on With Daily Life.

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