Credit Repair After Bankruptcy Australia
Bankruptcy doesn't have to be a life sentence. We help Australians remove bankruptcy listing errors, improve credit scores, and rebuild their financial future.
What Our Clients Say
Real reviews from real Australians who fixed their credit with us
Your Fresh Start Begins With Expert Help
Elisa Rothschild, Principal Lawyer & Director of Australian Credit Solutions, explains how we help Australians remove defaults and rebuild their credit. With 12+ years experience and ASIC licensing (ACL 532003), you're in expert hands.
Bankruptcy Doesn't Have to Be a Life Sentence
You made the hardest financial decision of your life.
Maybe it was a business that failed. A medical emergency that buried you in debt. A divorce that wiped you out financially. A period of unemployment during COVID that spiraled out of control. Or just a series of bad decisions that compounded into something you couldn't escape.
Whatever the reason, you declared bankruptcy. And it felt like financial suicide.
The shame. The stress. The feeling that you'd permanently destroyed your financial future.
But here's what most Australians who've been through bankruptcy don't realize:
Your financial life isn't over. It can be rebuilt — faster than you think.
Yes, bankruptcy stays on your credit file for years. Yes, it's one of the worst marks you can have. But with the right strategy, you can:
- Remove bankruptcy listing errors that are keeping it on your file longer than legally allowed
- Improve your credit score even while bankruptcy is still listed
- Qualify for credit cards, car loans, and eventually even home loans again
- Rebuild your financial reputation within 2-3 years instead of 5-7+
We've helped hundreds of Australians go from "discharged bankrupt with no options" to "approved for credit and moving forward with life."
Understanding Bankruptcy on Your Australian Credit File
How Long Does Bankruptcy Stay on Your Credit File?
Under Australian law (Bankruptcy Act 1966), bankruptcy remains on your credit file for:
If You're Currently Bankrupt (Undischarged)
- Listed for the entire bankruptcy period (usually 3 years and 1 day)
- Plus an additional 2 years after discharge
- Total time on file: 5 years from the date you became bankrupt
If You've Been Discharged
- Remains on file for 2 years from discharge date
- Can be removed the day after the 2-year period ends
Example Timeline:
The Brutal Impact of Bankruptcy on Credit Applications
While bankrupt (undischarged):
- Cannot get credit over $6,615.40 without disclosing bankruptcy (it's illegal)
- Cannot be a company director
- Cannot travel overseas without trustee permission
- Major banks automatically reject all credit applications
Even after discharge:
- Home loan applications rejected for 2-5 years post-discharge
- Car finance limited to specialist "bad credit" lenders (15%+ interest)
- Credit cards declined by major banks
- Personal loans very difficult to obtain
- Credit score typically 300-450 (far below the 622+ needed for standard credit)
But — and this is critical — your credit file can still have errors that make things even worse.
How Credit Repair Helps After Bankruptcy
Let's be completely honest: we cannot remove a legitimate bankruptcy listing before its legal removal date. That would be illegal. Anyone who promises to "wipe your bankruptcy early" is either a scam or doesn't understand Australian law.
What we CAN do — and what makes a massive difference:
Remove Bankruptcy Listing Errors
Bankruptcy listings often contain errors that keep them on your file longer than legally required:
- Incorrect discharge date — Shows you as still bankrupt when you've been discharged
- Wrong bankruptcy date — Listed earlier than actual date (extends removal timeline)
- Bankruptcy still listed after 2-year post-discharge period — Legally should've been removed but wasn't
- Listed on some bureaus but not others — Should be synchronized across Equifax, Experian, Illion
We identify and correct these errors, ensuring your bankruptcy is removed the moment it's legally allowed.
Remove Other Defaults & Judgments
Your bankruptcy likely discharged various debts. But often, those discharged debts are still showing incorrectly on your credit file:
- Defaults included in bankruptcy still showing as active
- Court judgments still listed (should be removed or noted as satisfied)
- Old debts showing as unpaid (when they were wiped out in bankruptcy)
We get them corrected or removed — improving your score even while bankruptcy notation remains.
Rebuild Your Credit Score Strategically
Even with bankruptcy on your file, your credit score can improve significantly through:
- Secured credit card — Small limit ($500-$1,000) paid in full monthly
- Perfect payment history on current bills — Phone, utilities, rent
- Low credit utilization — Keeping any credit below 30% of limits
- Time passing — Each month post-discharge, score gradually improves
- No new negative items — Avoiding defaults, late payments, or credit enquiries
We provide a post-bankruptcy credit rebuilding roadmap customized to your situation.
Position You for Post-Bankruptcy Credit
Once bankruptcy is close to removal (or removed), we help you:
- Maximize credit score — Get to 550-620+ range
- Document your financial recovery — Prepare evidence of stable income, savings
- Identify bankruptcy-friendly lenders — Some lenders are more flexible
- Time your applications strategically — When to apply, when to wait
Not sure what errors might be on your file? We can check for free.
Danielle's Post-Bankruptcy Recovery
The Problem
Danielle, a 38-year-old single mother from Brisbane, declared bankruptcy in September 2019 after a messy divorce left her with $87,000 in joint debts her ex-husband refused to pay.
She was discharged in October 2022. By October 2024 — two years post-discharge — the bankruptcy should have been removed from her credit file.
But when Danielle applied for a car loan, she was rejected.
She pulled her credit report and discovered:
- Bankruptcy still listed — Despite being more than 2 years past discharge
- Three old defaults still showing as "unpaid" — When they'd actually been discharged in her 2019 bankruptcy
- Credit score of 402 — Far below the 550+ needed for standard car finance
She contacted the credit bureaus herself — they responded with vague "under investigation" emails and never fixed anything.
The Solution
We identified critical errors:
Bankruptcy listing error: The bankruptcy notation hadn't been removed after the legally required 2-year period — a breach of Privacy Act Section 18E.
Three defaults incorrectly listed: All three debts ($3,200 Westpac credit card, $1,800 personal loan, $950 medical debt) were included in Danielle's 2019 bankruptcy but still showing as "unpaid."
We immediately lodged aggressive disputes with all three bureaus, citing Privacy Act violations and providing bankruptcy discharge papers.
The Outcome
Bankruptcy completely removed from all three credit bureaus. All three defaults corrected.
Two weeks later, she reapplied for car finance through a credit union — approved in 5 days.
2020 Mazda CX-5 financed at 11.9% interest (vs 19.5%+ at bad credit lenders).
Savings over 5 years: $7,680+
Been through bankruptcy and need help rebuilding?
Post-Bankruptcy Credit Rebuilding: The 5-Phase Strategy
Rebuilding credit after bankruptcy isn't fast or easy — but it's absolutely possible with the right strategy.
Discharge Confirmation & Error Removal
- Obtain official discharge certificate from your trustee
- Pull credit reports from all three bureaus
- Verify discharge date is correctly listed
- Check if any discharged debts are still showing as "unpaid"
Our role: Identify and correct any bankruptcy listing errors
Credit Score Stabilization
- Pay ALL current bills on time (phone, utilities, rent)
- Apply for a secured credit card ($500-$1,000 limit)
- Use secured card for small purchases, pay in full monthly
- Build emergency savings ($1,000+ minimum)
Expected score range: 450-550
Credit Score Improvement
- Continue perfect payment history
- Increase secured credit card limit if possible
- Consider a small personal loan from a credit union if approved
- Keep credit utilization under 30%
Expected score range: 500-600
Bankruptcy Removal & Score Surge
- Bankruptcy is legally removed from credit file
- Credit score typically jumps 50-150 points immediately
- You're now "post-bankruptcy but clean file"
Expected score range: 550-650+
Credit Rebuilding & Major Applications
- Standard credit cards (not just secured cards)
- Car loans at reasonable rates (10-14%)
- Personal loans for larger purposes
- Home loans (after 2-3 years post-discharge with good score)
Expected score range: 600-700+
Types of Credit You CAN Get After Bankruptcy (And When)
Immediately After Discharge
- Secured credit cards ($500-$1,000 limit, requires deposit)
- Prepaid debit cards (not credit, but useful for online purchases)
- Utility accounts (if you pay a bond)
- Mobile phone plans (prepaid only, or postpaid with bond)
6-12 Months Post-Discharge
- Low-limit credit cards ($1,000-$2,000 from credit unions)
- Small personal loans ($2,000-$5,000 from specialist lenders)
- Car finance (from "bad credit" lenders at higher rates)
1-2 Years Post-Discharge
- Standard credit cards ($5,000+ limits from smaller banks)
- Car finance at better rates (10-14% from credit unions)
- Moderate personal loans ($10,000-$20,000)
2+ Years Post-Discharge (Bankruptcy Removed)
- Major bank credit cards (if score is 600+)
- Standard car finance (8-12% rates)
- Larger personal loans ($20,000+)
- Home loans (from specialist lenders, higher deposit required)
3-5 Years Post-Discharge
- Major bank home loans (650+ score, 20% deposit, stable income)
- Business loans (with strong business financials)
- Investment property loans (harder, but possible)
Common Myths About Credit Repair After Bankruptcy
"Bankruptcy ruins your credit forever"
Bankruptcy is removed 2 years post-discharge (5 years from bankruptcy date). After removal, you can rebuild to 600-700+ score within 2-3 more years.
"You can never get a home loan after bankruptcy"
Many Australians get home loan approval 3-5 years post-discharge with good score (650+), 20% deposit, and stable income.
"You can't improve your credit score while bankruptcy is still listed"
You can improve from 400 to 550-600 even with bankruptcy on file by building positive payment history and using secured credit responsibly.
"Credit repair companies can remove bankruptcy early"
No one can legally remove bankruptcy before the 2-year post-discharge period. Anyone claiming otherwise is lying. BUT we CAN correct errors and remove it exactly when legally allowed.
Have questions about your specific situation? We're here to help — no judgment, just honest answers.
Rebuild Your Credit After Bankruptcy — Free Assessment in 60 Seconds
Find out if you have errors on your credit file extending your bankruptcy or holding back your score. No judgment. No pressure.
Common Questions
Can credit repair remove bankruptcy from my file early?
How long after bankruptcy discharge can I get a home loan?
Will bankruptcy stop me from getting a job?
Can I travel overseas after bankruptcy discharge?
How do I rebuild credit after bankruptcy?
What credit score can I achieve after bankruptcy?
Do all lenders see bankruptcy the same way?
Should I pay off debts that were discharged in bankruptcy?
Your Financial Future Starts Now
Bankruptcy felt like the end. But it was actually a fresh start — a legal reset of debts you couldn't manage. Now comes the rebuilding phase.
Bankruptcy doesn't define you. It's just a chapter you're closing. Let us help you write the next one.
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