Surviving Bankruptcies in Australia
Filling for bankruptcy certainly feels like you have hit rock bottom in your finances. While it does help you get rid of your debt, the bankruptcy still stays on the credit report for a few years. However, it is also a chance to start from a clean slate.
You can still improve your situation and be in control from the beginning to avoid going once again into financial troubles. There are various ways of surviving bankruptcy in Australia. Let’s have a look.
Things to Monitor After Bankruptcy
After you declare bankruptcy, you must monitor a few things to regain control of your financial situation.
Be sure to continuously monitor your credit score and credit report after your bankruptcy. Using credit responsibly and wisely can help you in improving your credit score drastically. Be sure that your credit report stays accurate.
It is essential to also monitor and maintain a savings or checking account steadily to improve your situation and survive bankruptcy.
Monitor your bills and pay them as soon as you receive them to improve your credit score. Make sure you are current on all the bills so that your credit score after the bankruptcy stays clean. Be watchful of your expenditure to avoid bills piling up.
Things to Avoid After Bankruptcy
When trying to survive bankruptcy, It is also important to stay clear of a few things, including:
Credit Card Scams
While the offer might be tempting, you need to remember you have already filed for bankruptcy. You don’t need more financial problems in your life. This is your time to improve your credit score, which is why keep on the lookout for scams.
Here are some signs of a scam:
- Upfront payment is required
- Your legal rights aren’t highlighted
- Discouraging you to consult credit reporting agencies
Taking New Credit
It is best to avoid taking on new credit unless you are absolutely sure that you would be able to handle it. Keep in mind; you don’t want to end up where you started. Therefore, it is best to avoid.
Using Credit Cards
This is the biggest risk of falling back into your old habits. Avoid using credit cards altogether or at least restrict the usage and be sure to repay immediately.
Budgeting After Bankruptcy
Surviving bankruptcy can’t be done without learning how to properly create a budget and stick to it. Here are a few tips for creating a budget:
- Determine how much you earn every month or week
- Calculate your weekly or monthly expenses, including rent, electricity bills, groceries, etc.
- Set aside the amount saved after spending on monthly expenses and transfer a certain percentage to your emergency or savings account.
- Identify areas where you are overspending
- Determine ways you can cut back on expenses by selecting less expensive options
Without budgeting after a bankruptcy, you might start facing similar financial problems.
How to Recover After Bankruptcy
The most important step to surviving bankruptcy is a proper recovery. It is certainly possible to recover after bankruptcy by making certain changes in your life. Here are a few tips to help you out:
- Start keeping track of your expenses and income
- Stick to the budget you have created
- Go for “cash-only” options for a certain amount of time
- Pay all your bills on time as a priority
- Find ways to improve your credit score
- Use a secured credit card if you have to
- Be sure to monitor your credit regularly
These changes will put you in control of your financial situation and help you survive and come out of bankruptcy stronger.
Life After Bankruptcy Discharge
In Australia, the discharge from bankruptcy automatically occurs three years and one day after the bankruptcy was accepted. However, in some cases, this period might be extended.
Whether you get discharged in the stated period, or it takes a little longer, it is essential that you are more vigilant with your finances to avoid further problems. Here are a few things to keep in mind:
- Getting a discharge from bankruptcy won’t get you to bank your assets and belongings even if they weren’t sold.
- If you purchase a new asset after getting a bankruptcy discharge, it stays under your name and won’t be claimed by any trustee.
- Maintaining a home and job is crucial after bankruptcy discharge. To improve your credit score and will eventually show your future creditors, if any, that you have learned from your mistakes and are reliable.
- When you declare bankruptcy, your details appear in various public records, and most of them get automatically removed after bankruptcy discharge after a specific time. However, you might need to get certain public records changed, including sending confirmation to all credit reference agencies to get your file updated.
Get Help Before Filing for Better Success With Surviving Bankruptcy
Bankruptcy can be intimidating, but it is also a fresh beginning. It is a chance for you to be more in control of your finances. Take this as an opportunity to grow and learn from your experience and make wiser and more informed financial decisions.
You can also get in touch with bankruptcy consultants to help you file and survive bankruptcy successfully.
As a Trustee in Bankruptcy, Ross Thomson is often required to think outside the box. As well as creative thinking, Ross brings compassion to the table.
For Ross, it’s important to see the people behind the financial problem –not just numbers.
Ross recently helped a bankrupt client who lives in a retirement village with her seriously ill husband.
The unit she & her husband live in is not owned by them, but subject to a 20-year lease.
The money to be repaid by the management was due only at sale, when the client finally left the retirement village.
Sale of the unit was likely to take several years &, if he did sell the couple’s unit, Ross realised he would be effectively evicting them from their home, without resources or family to help them.
Ross decided to contact the retirement village management & put a proposal to them that they prepay some of the moneys they would otherwise pay the client.
The village management considered the proposal & have agreed to prepay some of the moneys otherwise due.
The client is relieved that she will not be evicted & can now concentrate on helping her husband through his health issues.
The moneys paid represented about 75% of what would have been available to creditors if they waited two years.
It is a win for the client and for the creditors.
I made an appointment with Andrew after finding him on google. I was nervous and apprehensive about what to expect but he made the process of bankruptcy extremely uncomplicated and stress free, allowing myself the opportunity to get the fresh start I was so desperate for. Thank you Andrew I could not recommend you enough.
Making the decision to go bankrupt was not easy however once I had spoken to Andrew i felt all my anxiety disappear. Andrew does not judge you and he has an innate ability to put you at ease. He took care of the whole process for me again reducing the stress involved with completing paperwork.
Thank you very much.
I will definitely recommend Andrew Bell to anyone contemplating bankruptcy. Don't wait! Andrew is there to help. With his knowledge, he can advise you of the best path to take and assist with the mind boggling paperwork.
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I saw Andrew for 'advice only' on possible bankruptcy due to a divorce. Left an hour later with the paperwork all done and feeling like a new person!
Andrew was extremely welcoming and made me feel so comfortable with my decision to proceed immediately.
This was the best investment I have ever made and cannot speak highly enough of Andrew. He doesn't just give excellent service his follow up afterwards is amazing. Thankyou Andrew you made my 'new' life so easy to achieve!
Andrew was very helpful in helping me through the bankruptcy process, as a single mother left with a massive debt from my ex and our previous marriage. I was struggling to keep my head above water on a week to week basis.
Andrew made me feel at ease immediately and helped me every step of the way, he happily and professionally answered any and all questions I had before, during and after the process. Thanks so much for your help Andrew!
Would highly recommend Andrew to anyone having financial difficulties. Andrew made me feel very comfortable - he took care of everything and keep in regular contact with me throughout the whole process.
Service was fantastic and he also keep in regular contact with me when everything had been finalised Thanks Andrew! can now get my life back on track.
Very prompt service and excellent source of knowledge and information, I highly recommend Andrew's service for a quick turn around of circumstances.
Andrew put my mind at ease in one easy appointment. Very satisfied with the outcome and service provided. Highly recommend Andrew.
Andrew was a steadying hand with his advice.Showing that things aren't as bad as first thought nor any obstacle insurmountable. If you have questions needing answers, Andrew is the person to ask. Thanks for your advice Andrew.
Andrew was very knowledgeable, caring, helpful and compassionate when I went and saw him. He made me feel that I wasn’t the loser and failure that I thought I was being. Even down to the box of tissues on the table.. which I needed. Highly recommend to go see Andrew if your struggling. There is life after!
Andrew and his team do an excellent job of helping their clients with bankruptcy advice and it is a pleasure to work with him.
Don't hesitate contacting Andrew, I was stressed, struggled sleeping through debt. Andrew put me at ease. He listened to my situation and we decided on my next move. Andrew is professional and easy to talk too. I would recommend highly to anyone who wants help to give him a call. I appreciate your support Andrew. Regards Brett.
Andrew has given me back my life!!! After living paycheck to paycheck, I didn’t know what to do. Until I made the big step and booked an appointment with Andrew. As soon as I left his office I felt a huge weight lifted!!!
Andrew was prompt, organised, friendly and efficient with the processing of my documents and made everything very simple for me so I didn’t need to deal with the added pressure and stress. Thank you Andrew for allowing me to start afresh and getting it done within a matter of weeks.
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