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End of bankruptcy
When your bankruptcy ends, you are released from most of your debts and no longer need to pay them. However, there may be some debts you still need to pay. Find out more at what happens to my debts.
Your name continues to appear on the National Personal Insolvency Index showing your bankruptcy has ended.
Managing your money
Now that you no longer need to pay back most of your debts, you can have a fresh start with your finances.
Keeping to a good budget can help you track your income and expenses and avoid falling into debt again. Set aside a small amount each month to cover unexpected expenses. And if you can, save for your future which can go a long way toward helping you build a new life.
Applying for credit
After your bankruptcy has ended, there is no restriction on applying for credit or loans (including home loans). It can take time to rebuild your credit rating and it's up to the credit provider to decide if they will lend you money.
Your credit report will continue to show your bankruptcy for either:
- 2 years from when your bankruptcy ends, or
- 5 years from the date you became bankrupt (whichever is later).
For information regarding credit reports and credit reporting agency contact details, visit ASIC's Moneysmart.
If you do borrow money or buy things on credit, make sure the repayments are within your budget.
Overseas travel
When your bankruptcy ends, you no longer need your trustee's permission to travel overseas.
Are there any employment restrictions?
The Bankruptcy Act 1966 does not impose any restrictions on employment, either during or after bankruptcy. However, some professional or licensing bodies impose restrictions in some trades or professions.
We recommend you contact the relevant agency or association to see if your bankruptcy will impact your employment. Common professions that bankruptcy may affect are listed under employment restrictions.
Do I need to keep in contact with my trustee?
After your bankruptcy has ended, you normally don't need to keep in contact. However, in some cases your trustee continues to manage your bankruptcy, even after it has ended.
Your trustee may still request that you:
- provide information about your financial situation
- make any outstanding compulsory payments
- cooperate with obtaining valuations/appraisals of property
- keep your contact details up to date.
What happens to my house when my bankruptcy ends?
If your trustee has claimed your house as an asset and they haven't sold it yet, they may still be able to sell the property to recover money owed to your creditors.
Trustees will regularly recalculate equity in a property to determine if there is value in selling the property to repay creditors. If there is a significant increase in available equity, from paying down a mortgage over a long period of time or an increase in overall property value, the trustee may sell the house and realise the asset even after your bankruptcy ends.
A trustee may attempt to sell their legal interest to any co-owner of the property or sell the property in the open market to gain a return for creditors.
There are limits that apply to the amount of time your trustee has to deal with the property. The time limit is generally 6 years from discharge from bankruptcy, however there may be variations depending on your circumstances. Contact your trustee for more information.