--- title: "Bankruptcy Discharge: How to Rebuild Your Finances" description: Congratulations! Your bankruptcy period is over and your debt troubles are far behind you. You might notice that the Bankruptcy has left a mark on your credit file and you are finding it difficult to start over. Learn how to get your credit rating back on track and rebuild your financial portfolio. image: https://lanyana.revivefinancial.com.au/hubfs/Bankruptcy-Discharge---How-to-rebuild-your-finances.jpg --- [![DR-Logo---Powered-by-RF-(2021)-137x60px](https://lanyana.revivefinancial.com.au/hubfs/DR-Logo---Powered-by-RF-(2021)-137x60px.png)](https://debtrescue.com.au) Menu [Apply Online](https://solutions.debtrescue.com.au/online-assessment-form) [1800 003 328](tel:+611800003328) 1800 003 328 - [Recent Articles](https://solutions.debtrescue.com.au/articles) - [Debt Consolidation](https://solutions.debtrescue.com.au/articles/tag/debt-consolidation) - [Debt Agreements](https://solutions.debtrescue.com.au/articles/tag/debt-agreements) - [Informal Agreements](https://solutions.debtrescue.com.au/articles/tag/informal-agreement) - [Debt Relief](https://solutions.debtrescue.com.au/articles/tag/debt-relief) - [Bankruptcy](https://solutions.debtrescue.com.au/articles/tag/bankruptcy) - [Budgeting](https://solutions.debtrescue.com.au/articles/tag/budgeting) - [Business Debt](https://solutions.debtrescue.com.au/articles/tag/business-debt) - [Credit File](https://solutions.debtrescue.com.au/articles/tag/credit-file) - [Education](https://solutions.debtrescue.com.au/articles/tag/education) - [News](https://solutions.debtrescue.com.au/articles/tag/news) - [Research](https://solutions.debtrescue.com.au/articles/tag/research) - [1800 003 328](tel:+611800003328) Talk to a Professional Apply Online [1800 003 328](tel:+611800003328) Call Now # Bankruptcy Discharge: How to Rebuild Your Finances Posted by [Debt Rescue](https://lanyana.revivefinancial.com.au/articles/author/debt-rescue) on Jan 26, 2017 11:00:00 AM - [Tweet](https://twitter.com/share) [![Bankruptcy-Discharge---How-to-rebuild-your-finances](https://lanyana.revivefinancial.com.au/hubfs/Bankruptcy-Discharge---How-to-rebuild-your-finances.jpg)](https://lanyana.revivefinancial.com.au/articles/bankruptcy-discharge-how-to-rebuild-your-finances) Congratulations! Your bankruptcy period is over and your debt troubles are far behind you. You might now notice that the Bankruptcy has left a mark on your credit file and you are finding it difficult to start over. Here are some tips on how to get your credit rating back on track and how to rebuild your financial portfolio. ## Forgiven, Not Forgotten. Your debts have been forgiven, you have lived with a Bankruptcy for 3 years and you have now been discharged, so why is it still difficult to borrow money? As far as your [credit file](https://lanyana.debtrescue.com.au/articles/what-is-a-credit-file-and-how-can-i-fix-it) is concerned, no activity can be just as damaging as bad activity. For the last 3 years, you have had no debts to repay so your credit file has been sitting idle with a bankruptcy mark against your name. Now the bankruptcy has gone, you’ve got nothing to show for your credit history but a blank page. This can turn banks off lending you money as they can’t see your repayment habits. They don’t know if you have [good money management skills](https://debtrescue.com.au/budgeting/) or not. ## Laying the Foundations While it is entirely possible to borrow money again after a bankruptcy, you shouldn’t be expecting to get a mortgage 6 weeks after your discharge date. It will take a little bit of time and effort to rebuild your credit score to a point where you would be considered a low-risk client again. The best way to start rebuilding your credit score after a bankruptcy discharge is by starting small. You should apply for a small and affordable personal loan, for the amount of $5000. Make sure you can afford the repayments first by using an online repayments calculator. Then set up a direct debit so you make each repayment on time and in full. After 6 months, you will have a loan on your credit file with no late payments and no defaults. You should see a notable improvement in your [credit score](https://lanyana.debtrescue.com.au/articles/what-is-a-credit-file-and-how-can-i-fix-it) after this period. This will make it easier to get a larger loan. ***IMPORTANT:*** Don’t use a payday lender to secure a small loan. Even if you make all the repayments on time, payday loans can hinder your credit file and the interest rates are very expensive. If you are having trouble finding a loan, use a broker to search for a [non-conforming lender](https://positivesolutionsfinance.com.au/?__hstc=169479870.987cb19771bb1a87d1e40fbeadc41c81.1547533576018.1553828891567.1554339630657.35&__hssc=169479870.2.1554339630657&__hsfp=2085310857). You can spot a payday lender as they generally offer small loan amounts with a fast turnaround and have very little lending criteria, ie: No credit check. ## Be Responsible It is unrealistic to think a person can get through life in Australia without needing to borrow money for something, whether it be a car, a home, medical costs or a holiday. But now you are on the other side of Bankruptcy you should understand the importance of living within your means. Improving your [credit file](https://lanyana.debtrescue.com.au/articles/how-is-a-default-listed-on-a-credit-file) after a period of bankruptcy is great, but just because you can borrow money again, doesn’t mean you have to rush out and get a loan. If you are looking at borrowing money, make sure you can afford the repayments over the period of the loan. Each bank uses a different formula to determine how much money they will lend you and sometimes the amount they offer is very generous. [Do your own sums](https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps) to determine how much you should borrow compared to how much you can afford. ![Is-Your-Business-In-Financial-Distress](https://lanyana.revivefinancial.com.au/hubfs/DR%20Blog%20CTA%20Banner%20-%20Personal%20Debt%20Solutions.gif) ## Have a Backup Plan During your bankruptcy with no debts to pay, you might be in the habit of putting extra money aside into a savings account. If not, this is a [great habit to start](https://debtrescue.com.au/budgeting/). Having an amount of money stashed away comes in handy for a forgotten bill, an unexpected event, an emergency situation or even a rainy day. Having a savings account means you don’t have to rely on an emergency credit card or a payday loan in your time of need. You should also look into life insurance and income protection insurance to make sure you aren’t left shorthanded. ## Get Savvy If you are a low-income earner, there are schemes, benefits and incentives available so you don’t have to rely on borrowing. If you need whitegoods, car repairs or furniture you can access the [No Interest Loan Scheme](http://goodshepherdmicrofinance.org.au/services/no-interest-loan-scheme-nils/). Government Benefits through Centrelink can also help you manage your bill repayments through [Centrepay](https://www.humanservices.gov.au/individuals/services/centrelink/centrepay). Look into all the assistance available to you to help you keep your finances on track after your Bankruptcy discharge. ## Financial Strife After Bankruptcy Discharge If you do fall into financial difficulty after a bankruptcy discharge, the debt relief solutions on offer are very limited. You may be able to speak to a [free financial counsellor](https://www.financialcounsellingaustralia.org.au/Home) about budgeting your way out of debt, but if you can’t afford your repayments the only other option is to declare [Bankruptcy again](https://lanyana.debtrescue.com.au/articles/declaring-bankruptcy-in-australia). There is no limit on the number of times you can declare bankruptcy, however each time you apply your case is assessed by [AFSA](https://www.afsa.gov.au/) (the Australian Financial Security Authority). AFSA may reject your application if they find you capable of making repayments. For more information on Bankruptcy, check out our Bankruptcy page [here.](https://debtrescue.com.au/declare-bankruptcy/)  Topics: [Bankruptcy](https://lanyana.revivefinancial.com.au/articles/tag/bankruptcy) ## More Articles - Recent Articles - Debt Consolidation - Debt Agreements - Informal Agreements - Debt Relief - Bankruptcy - Budgeting - Business Debt - Credit File - Education - News - Research ### Subscribe Here! ### Get the Latest Debt Free and Budgeting Advice straight to Inbox Free ### Recent Posts ### If you are in too deep with debt, we here to rescue you. We have the right solution for your situation. Contact us today. No obligations, just solutions! ## Talk to an Aussie who cares. 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Liability limited by a scheme approved under professional standards legislation. ## What Kind of Debts Do You Have? ![](https://debtrescue.com.au/wp-content/uploads/2020/11/Credit-card-icon.png) Credit/Store Card ![](https://debtrescue.com.au/wp-content/uploads/2020/11/Personal-loan-icon.png) Personal Loan ![](https://debtrescue.com.au/wp-content/uploads/2020/11/Pay-day-loan-icon.png) Pay Day Loan ![](https://debtrescue.com.au/wp-content/uploads/2020/11/tax-debt-icon-green.png) Tax Debt ![](https://debtrescue.com.au/wp-content/uploads/2020/11/Unitilties-Icon.png) Utility Bill ![](https://debtrescue.com.au/wp-content/uploads/2020/11/other-icon.png) Other Please select at least one type of unsecured debt. Next ## How Much Money Do You Owe? $10,000 $1,000 $100,000+ Next ## Find Out How To Reduce Your Debt ### Your First Name ### Your Last Name ### Your Email ### Your Phone Phone number must be 10-digits long and begin with a 0. 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