FAQs | What Happens When You Become Bankrupt?
No, bankruptcy will not destroy your credit rating for good but will have a short-term negative effect.
Once you become bankrupt it is important that no further defaults are recorded on your credit record.
Bankruptcy remains on your credit record for 5 years or 2 years after you are discharged from bankruptcy, whichever is greater.
Once bankruptcy has been removed from your credit record, defaults left on your record will determine your rating. If during the period whilst bankruptcy is shown on your credit record, you have met all your financial obligations and no further defaults have occurred, you will be well along the recovery road to having a good credit rating.
Nicholls & Co have a complementary ‘help desk’ to answer your questions on bankruptcy. Call Nicholls & Co on 1300 060 122 or email firstname.lastname@example.org.