Life After Personal Insolvency

Going bankrupt or insolvent is a stressful and life changing event to face. Often there is an abundance of support and information out there for how to enter into bankruptcy or declare insolvency, but not so much to provide insight about life after personal insolvency. 

Bankruptcies typically last for 3 years and have ongoing outcomes that includes having your name listed on the National Personal Insolvencies Index. 

It can be hard to understand your rights and obligations surrounding finance, job prospects and travel after you have been declared insolvent, but it is important to educate yourself in order to rebuild your financial future successfully. 

Impacts on life after insolvency can apply to the following areas: 

Applying for credit

There are no restrictions on applying for credit for those who have been declared insolvent. However, a bankruptcy status will remain on your credit file for either 2 years from the time your bankruptcy has ended or 5 years from the date you filed for bankruptcy. It is at the creditors discretion to grant loans or credit based on this information. 

Job restrictions

Generally there are no restrictions on job eligibility after bankruptcy term has ended, but some industries – including but not limited to Accountants, Counselors, Finance Brokers, Law Enforcement, and Lawyers – can have additional requirements. has a full list of regulated industries. 

Trustees relationship

Normally post-insolvency, a bankrupt is not required to keep in contact with their trustee unless under special circumstances. For example, your trustee may reach out to you to inquire about your financial situation, keep track of remaining repayments or gather relevant information if they are yet to finalise selling your assets.

Ongoing financial assistance

Life after personal insolvency can still be difficult, so it is important to seek adequate support as needed.

 Each state in Australia has government agencies, community centres and personal insolvency consultants to assist you with any financial concerns or questions, especially pertaining to your life after personal insolvency.

 A good place to start is the Australian Debt Helpline, where you can receive one on one assistance and emotional support regarding your situation.

Debt Assist have a qualified team of financial professionals who can help you understand available resources and services to get back on track after insolvency. For more information about life after personal insolvency see here at Debt Assist.

Back to Blog

Related Articles

Financial Support Services | Covid-19 & Financial Support Services

There are several reasons one might seek financial support services, not limited to the experience...

How To Find A Financial Counsellor | Debt Assist

Experiencing difficulties with personal finance can be extremely difficult and confronting, let...