Liz Porter, 54, who has bought a home after being bankrupt in her 20s.
An Aussie IT manager has detailed the startling string of events that led her into bankruptcy and how she managed to turn things around and become a successful investor and homeowner.
Liz Porter was told she would never amount to anything and, by her 20s, was spiralling – emotionally broken, flat broke and branded a failure by the very people meant to guide her.
Today, at 54, she stands tall as an IT manager in Australia’s health sector and a proud homeowner in Melbourne’s Docklands, an impressive feat considering she was once bankrupt.
She said the chain of events that led her into this situation could happen to anybody, but at the time she felt ashamed.
“I had bad relationships that were abusive,” Ms Porter revealed. “As I was growing up, I was always told I was stupid. Teachers even told me this.
“I remember one teacher in particular said I would never achieve anything, said I wasn’t worth anything.
“When you’re 15 and you hear that, you just take it on. You believe it. It didn’t help with the kind of decisions I made. When you think you’re stupid, you just stop caring. That was a big part of how I go (into debt). I stopped caring.”
Liz Porter said she wished she hadn’t taken on all the negative feedback she got from teachers.
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She explained that her debt problems snowballed after a string of netball injuries and toxic relationships, among other things.
“I didn’t care about life anymore. I just spent and spent,” Ms Porter said.
“I was burning through money. It was retail therapy for all my problems … You go out and drink, buy fancy clothes and shoes, but I didn’t really have much else to show for it.”
She eventually reached a point where she could no longer service her debts. With mental health problems exacerbating, a therapist told her repaying the debt would take too much of a toll on her and recommended she file for bankruptcy.
This would mean not being able to get credit for seven years and she believed banks would frown on any future loan applications she made from thereafter.
“I had to move to a life of paying everything by cash and I lived that way for nearly 25 years.”
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Ms Porter kept her financial collapse largely secret. “I didn’t tell anyone apart from family. It was almost like if you don’t tell anyone, maybe it’s not real,” she said. “You become an angry person.
“People would ask ‘what’s wrong?’ I could never say. I wouldn’t talk to anyone because when people have told you you’re stupid, you think you’ve brought it on yourself. I took it all on hard.”
THE ROAD TO RECOVERY
After hitting rock bottom, she clawed her way back – starting with a job at a major IT company, where she rose through the ranks fast.
With new-found purpose, she rebuilt not only her career but her confidence.
Years later, she was offered voluntary redundancy and she made a bold move. She took the payout and enrolled in a financial management course. What she learned changed everything.
“I thought I’d never be able to buy a home because of the bankruptcy,” she said. “But after a chat with [a financial adviser], I realised maybe I could.”
Financial expert Melissa Browne said it was still possible to build wealth even after bankruptcy.
Despite years of assuming she’d never qualify for a loan, Ms Porter discovered her consistent rental history, strong income, and savings from the redundancy made her an ideal candidate.
A few months, a new job and a mortgage broker later, Ms Porter bought a unit in Docklands – the very suburb she’d been renting in and had grown to love.
Now, she’s eyeing her next move: setting up an SMSF to invest in affordable housing and leveraging her equity to build a future that once seemed out of reach.
PERSONAL BANKRUPTCIES IN AUSTRALIA
Financial guidance expert Melissa Browne said Ms Porter’s debt situation was more common than most people wanted to admit.
She said there was a strong stigma and shame attached to bankruptcy. People often tried to maintain the appearance of success and avoided confronting their financial situation.
Common responses included denial and avoidance, or “burying their heads in the sand,” Ms Browne said. This behaviour often continued until a significant event forced them to face the issue.
Liz Porter with her dog Elliot.
“There are more solutions than most people realise, including free financial services, zero-interest debt help, and guidance tailored to income levels,” Ms Browne said.
Ms Porter said she hasn’t forgotten the dark days. “I wish I didn’t take on board all that nonsense people had told me. I learned to love myself,” she said.
“It’s important to get advice from an expert. Learn. There is always a way out of things. You just need to find someone to help you.”
HOW TO INVEST WHEN YOU’RE BANKRUPT
> Face the reality: Acknowledge your financial situation instead of avoiding it. Change starts with awareness.
> Seek support: Use free financial services, zero-interest programs, or work with financial professionals based on your income level.
> Create a debt-clearance plan: Focus first on eliminating bad debt. This may include budgeting, taking on extra work, or cutting housing costs.
> Shift from debt-free to wealth-building: Once debt is gone, start small with investing (e.g. $20 a day in ETFs) to build long-term financial security.
> Relearn money habits: Improve your financial literacy, tighten spending, and identify new ways to earn or save cash.
> Talk about it: set financial goals to make the journey feel positive and empowering.
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