Loans for bankrupt

Loans for bankrupts

Bankruptcy doesn’t have to be the end of the road. Here’s how to get a personal loan after you’ve been declared bankrupt.

Filing for bankruptcy is not an easy step for anyone to take. However, the most difficult process usually comes when you’re trying to rebuild your finances, your credit and your life. During your bankruptcy or after you are discharged you may find yourself in need of a loan – but are there lenders who will be willing to consider you for a second chance?

Can I get a loan if I’m bankrupt?

You may be able to get a loan if you are a discharged bankrupt or even if you are currently bankrupt. Keep in mind you will be more limited in terms of the lenders you have to choose from and the fees and rates will also be considerably higher on bankrupt loans. You may also be required to attach an asset as security or apply with a guarantor. Find out about your loan options below and see what you might be eligible for.

Before you apply for a loan while bankrupt…

  • As your assets and income may have been affected by bankruptcy, deciding whether or not you can afford the repayments is an important consideration. What will your repayments be and how will they work with your budget?
  • Applying for a loan when you’re in any challenging financial situation isn’t a decision that should be taken lightly. This is especially true when you are bankrupt. Consider why you are taking out the loan and if there is any other way you can pay for what you need.
  • Speaking to a free financial counsellor might be an option for you to consider before you apply for any financial product. You can give one a call on 1800 007 007.

What kind of bankrupt loans are available?

If you’re in need of financing and you’re currently bankrupt or have a bankruptcy listed on your credit report, the following loan options might be an option for you:

  • Payday loan. These are short term loans up to $2,000 with repayment terms between 16 days and one year. You can also find loans up to $5,000 or even $10,000. Lenders have flexible lending criteria, and while they won’t all consider bankrupt applicants, some will.
  • Personal overdraft. Your current bank may be willing to approve you for a small personal overdraft if you have a good history with it.
  • Personal loan. Bad credit personal loans are available from lenders, some for large amounts.
  • Business loans. If you’re bankrupt you still may be able to apply for a business loan. These loans are larger, some for amounts up to $500,000, and are designed to finance a range of business purposes.
  • Car loan. Secured loans can be easier to be approved for than car loans as they are less of a risk to a lender. You can consider a bad credit car loan and attach your newly purchased vehicle to the loan as security

Sunshine Short Term Offer

Sunshine Short Term Offer

  • Bad credit applicants considered
  • Fast approval service
  • Borrow up to $2,000
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Sunshine Short Term Offer

A short term loan with a fast and easy application available to those with good or bad credit. You can apply today and get approved for up to $2,000.

  • Loan amount: $2,000
  • Loan term: 9-15 weeks
  • Turnaround time: 30 minutes (conditions apply)
  • Fees: 20% of borrowed amount + 4% of borrowed amount each month
  • Income requirement: 50%+ of income cannot be from Centrelink
  • Bad credit borrowers OK
  • Quick and easy Approval
  • No Credit Checks
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Promoted
Updated October 16th, 2018
Name Product Maximum Loan Amount Term of Loan Cash Deposited In Costs Fornightly Repayment (for $1500 Loan)
$2,000
9-15 weeks
30 minutes - conditions apply
20% of loan amount + 4% of loan amount each month
$396
A small loan up to $2,000 that you repay over 9-15 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income

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How can I get approved for a bankrupt loan?

While there are lenders who will consider applicants who are or who have previously been bankrupt, filling out the application is not all it takes to be approved. Here are some of the criteria that will be in place when you're considered for a bankrupt loan:

  • Employment. You may be required to be employed, although unemployed loans are available. Different criteria are in place, for instance, your employment may need to be regular and ongoing and you may not be accepted if you're self-employed or part-time, etc. Check what the lender’s restrictions are before applying.
  • Centrelink. While you may still be considered for a loan if you receive Centrelink payments, lenders often have restrictions as to what percentage of your income can be made up of benefits (usually 50% if the restriction is in place). Another common restriction is that your loan repayments can’t exceed a certain percentage of your Centrelink income (typically 20%).

Here's how to get a home loan if you're a discharged bankrupt

  • Income. How much do you earn? Lenders often have minimum income requirements in place. They may allow your income to be from employment and Centrelink, or may need it to be solely from regular employment, but it will usually need to be over a certain amount per week or month.
  • Assets. For bankrupt loans, the lender may require you to secure an asset to the loan as a guarantee in case you default on the loan.
  • Ability to manage your repayments. This is the main requirement lenders have when considering you for a loan. Does your income allow you to easily manage your repayments after taking into account your liabilities and debts? If your repayments will be manageable and you meet the lender’s other criteria, you will be able to apply.
  • Guarantor. If you don’t meet the lender’s criteria, you may be able to apply with a guarantor to increase your chances of being approved.

Which lenders consider bankrupt or discharged bankrupt applicants?

Brand Does it approve bankrupt applicants? Criteria
Cash Converters Yes You can be approved if you've been discharged from a Part 9 Debt Agreement.
Cash Train Yes You can apply as long as you meet the minimum requirements.
ClearLoans Yes You can apply once your bankruptcy has been discharged.
Credit24 No You must have a reasonable credit history to apply.
Fair Go Finance Yes You need to have entered into bankruptcy at least 12 months previously.
Ferratum Yes You cannot have declared bankruptcy in the prior 12 months.
enably No You cannot apply.
Nimble No You cannot apply.
Rapid Finance Yes You can apply, your application will be judged on a case-by-case basis.
Speckle No You are note eligible.
Sunshine Loans No You cannot apply if you are a current bankrupt.
Swoosh Finance Yes You will be considered if you are under a Part 9 or currently bankrupt.
Wallet Wizard Yes You can apply if you're a discharged bankrupt.

What to know about bankruptcy and Part 9 Debt Agreements

Are you bankrupt or under a debt agreement? Understanding the differences, and similarities, are important.

  • How long it lasts. Bankruptcies last for a minimum of three years and a maximum of eight. You are only under a debt agreement until you repay your debts.
  • Your credit report. Bankruptcies will show on your credit report two years after the date you were discharged or five years from the date you became bankrupt, whenever is later. A debt agreement appears on your file for five years from the start date. Remember you can check your credit report for free with finder to and and receive regular updates to see how you're tracking.
  • Your name on the National Personal Insolvency Index. If you're bankrupt your name will be listed forever, those on debt agreements are only listed for a limited amount of time.
  • Eligibility. Bankruptcy has no income, asset or debt thresholds but debt agreements do. You can't be bankrupt if you were previously bankrupt, and you can't enter a debt agreement if you've been bankrupt or under a debt agreement in the past 10 years.
  • Employment and income restrictions. Those under debt agreements have no restrictions, but bankrupt people have their income restricted and certain industries may have restrictions regarding employment.
  • Other restrictions. If you're bankrupt you have many restrictions, such as not being able to travel overseas without consent, and those under debt agreements usually need to disclose it if you own a business in another name.

The questions we've been asked about bankruptcy

Here at finder.com.au we get questions from readers all the time about bankruptcy. We’ve brought together some of the most common questions to help shed some light on a complicated financial process.

How long does bankruptcy last?

You are usually considered bankrupt for three years, but this can be extended to five or eight years if your trustee lodges an objection to your discharge.

When will my bankruptcy end?

Bankruptcy is considered ended as the result of an annulment or you being discharged.

  • Discharged. If you became bankrupt by presenting your own petition, you will be due for discharge three years and one day after you filed that petition and your statement of affairs. If you became bankrupt by a sequestration order of the court, you will be due for discharge three years and one day after your statement of affairs was accepted.
  • Annulment. This is the cancellation of your bankruptcy and can happen when your debts are paid in full, your creditors accept a composition or agreement, or you successfully appeal to the court for an annulment.

How long does my bankruptcy remain on my credit file?

Your bankruptcy is listed on credit reporting agencies records for two years from the date you are discharged or five years from the date you became bankrupt, whichever is later.

After the listing is removed from my file will lenders be able to see I’ve been bankrupt?

Following the end of your bankruptcy, your name will remain forever on the National Personal Insolvency Index (NPII) as a discharged bankrupt. This information is publically available and any person can pay a fee to conduct a search of the NPII – this includes creditors, journalists and potential reporters.

Can I apply for a no credit check loan without telling the creditor I’m bankrupt?

There is a legal requirement for you to disclose your bankruptcy when applying for a loan over a certain amount. Currently, the threshold is $5,447.

Can I apply for a personal loan to take a holiday?

While you’re able to apply for a loan, overseas travel is restricted if you’re still currently bankrupt. You need to apply for permission to travel overseas with your trustee if you are currently bankrupt.

Elizabeth Barry

Elizabeth is an editor for finder.com.au specialising in personal finance and fintech. She enjoys reading PDSs so you don’t have to.

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71 Responses

  1. Default Gravatar
    SenayOctober 9, 2018

    I have 0 $$ to my name and are minus and owe alot of money to online loan companies how do I get a loan

    • finder Customer Care
      JohnOctober 9, 2018Staff

      Hi Senay,

      Thank you for leaving a question.

      I understand your predicament and would highly advise you to speak with your current lenders to discuss repayment options that are available for members who are experiencing financial hardship. You may also reach out to the National Foundation for Credit Counselling (NFCC) at 1-800-388-2227 for assistance as well. Hope this helps!

      Cheers,
      Reggie

  2. Default Gravatar
    ColinMay 4, 2018

    I was made bankrupt in March 2008 but did not get paper work too fill out do I have too do a notheir 3 years when I fill paperwork out statement of affairs or how Can I get it removed right know from my credit file

    • finder Customer Care
      NikkiMay 4, 2018Staff

      Hi Colin!

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      Your bankruptcy is listed on credit reporting agencies records for two years from the date you are discharged or five years from the date you became bankrupt, whichever is later. The cancellation of your bankruptcy or ANNULMENT can happen when your debts are paid in full, your creditors accept a composition or agreement, or you successfully appeal to the court for an annulment.

      Since you mentioned that you were not able to fill out a petition, the duration of 3 years and one day to be discharged is not yet in effect. Given this, to start a petition to discharge, you must file this along with your statement of affairs.

      Hope this helps! Feel free to message us anytime should you have further questions.

      Cheers,
      Nikki

    • Default Gravatar
      CraigMay 31, 2018

      Colin was was made bankrupt in March 2008, thats over 10 years ago which exceeds the 3 years 1 day timeframe.
      Doesn’t the bankruptcy get removed automatically after that timeframe, so the credit reporting agencies wouldn’t see the bankruptcy?

    • finder Customer Care
      NikkiMay 31, 2018Staff

      Hi Craig,

      You are usually considered bankrupt for three years, but this can be extended to five or eight years if a trustee lodges an objection to your discharge.

      Following the end of bankruptcy, your name will remain forever on the National Personal Insolvency Index (NPII) as a discharged bankrupt. This information is publically available and any person can pay a fee to conduct a search of the NPII – this includes creditors, journalists and potential reporters.

      Hope this clarifies.

      Best,
      Nikki

  3. Default Gravatar
    NatApril 24, 2018

    I entered into bankruptcy last week. Am I able to apply for an advancement of my Centrelink payments?

    • Default Gravatar
      ArnoldApril 24, 2018

      Hi Nat,

      Thanks for your inquiry

      After bankruptcy, you won’t immediately be able to qualify for most conventional mortgages, car loans and the like. For most people who file bankruptcy and then pay their bills on time, however, those loans will be within reach 2-3 years after discharge. So while bankruptcy won’t be a quick fix for helping you get a new, big loan it can help you achieve good credit standing in a fairly short period of time.

      It would be difficult to apply for an advancement of your Centrelink, but it is not impossible. However, you will need to show them that you are able to repay the advance payment and still have enough money for your day to day expenses.

      Hope this information helps

      Cheers,
      Arnold

  4. Default Gravatar
    philApril 9, 2018

    I am about to be declared bankrupt but I am desperately in need of a loan for a car to get to work, can I get one?

    • finder Customer Care
      JeniApril 9, 2018Staff

      Hi Phil,

      Thank you for getting in touch with finder.

      Yes, you can still apply for a car loan or personal loan even if you declare bankruot or not.

      You may visit this link for more info on getting a loan. You’ll be more limited in terms of the lenders you have to choose from, but there are options available to you. The fees and rates may be considerably higher on loan after bankruptcy, and you may be required to attach an asset as security or apply with a guarantor.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

  5. Default Gravatar
    JoshuaMarch 9, 2018

    I need a 2000 loan for bills. I had a part 9 debt agreement but not anymore. I’m a full time worker 1100 a week.

    • finder Customer Care
      JhezelynMarch 10, 2018Staff

      Hi Joshua,

      Thank you for your comment.

      As most lenders use credit scores as part of their assessment, you’ll have to make sure that you’re already realeased from bankcruptcy. You may refer to our step-by-step guide to getting free credit score and credit report.

      Please also check our guide on how to repair your credit file after bankruptcy.

      Moreover, there are also lenders who might consider you for a loan in exchange of high interest rates given that you have a stable income to repay the loan. The lenders listed on this page may consider you for a loan.

      Regards,
      Jhezelyn

  6. finder Customer Care
    MayFebruary 23, 2018Staff

    Hi Tal,

    Thanks for your inquiry and sorry for the delay.

    There are still lenders who might approve you for a loan but the amount may not be as high as $50,000. Nevertheless, they will assess your overall financial situation and see if you can service the loan. Please check this page to find out which lenders who offer personal loan to bad credit. Please also get in touch with the lender you want to go with to discuss your option/eligibility.

    Hope this helps.

    Cheers,
    May

  7. Default Gravatar
    ColleenFebruary 5, 2018

    I am currently in bankruptcy due to unfortunate circumstances and I desperately need to purchase a new car for work. What can i do and who can i turn to?

    • finder Customer Care
      JoanneFebruary 6, 2018Staff

      Hi Colleen,

      Thank you for visiting finder, we are a financial comparison website and general information service.

      You may still be able to get a loan even if you are currently bankrupt. You will be more limited in terms of the lenders to choose from, and the fees and rates may also be considerably higher. You may also be required to attach an asset as security or apply with a guarantor.

      For car loans, a secured loan can be easier to be approved for than car loans as they are less of a risk to a lender. You can consider a bad credit car loan and attach your newly purchased vehicle to the loan as security. You may read more and compare lenders on this page .

      Cheers,
      Joanne

  8. Default Gravatar
    PaulOctober 14, 2017

    Hi I’m a full time miner who travels 700 kms every 5 days for work my vehicle I use to travel and is also my family car has blown the engine and in order to replace the engine I need $10000
    Over 12 months ago I entered into debt consolidation unaware it was something called a part 9 debt agreement witch hinders me greatly from acquiring a loan.
    I’m in desperate need of a new engine and don’t have the savings to purchase one.
    Can you offer any advice
    Cheers Paul

    • finder Customer Care
      JoanneOctober 14, 2017Staff

      Hi Paul,

      Thanks for reaching out.
      Debt agreements are kept on one’s credit file for five years and will affect credit applications in the future. After the debt agreement has been paid in full, you may apply for credit however chances of being approved will be lower until you improve your credit rating. Here is a page you can use a guide to help repair bad credit.
      You may want to visit this link, check the eligibility criteria and reach out to lenders directly to get additional information.

      Cheers,
      Joanne

  9. Default Gravatar
    TaniaJuly 13, 2017

    Hi,
    Thanks for taking the time to get back to me, my husband and I will be discharged in April 2018, unfortunately we declared bankrupt when he was out of work for 9months, would NEVER choose this route ever again.
    Our house we are still in and has a caveat on it (we are probably in the trustees too hard box, as 40% of the house we purchased was with protected monies),. We would like to consider purchasing a 5th wheeler and living in that full time some time next year:
    We both are employed full time and have been for over 2 yrs,
    We both work in jobs that we don’t need a permanent base for.
    What are our options for finance as we are considering either forcing the trustees to sell our property so we can some of our protected monies back, or just walk away and start again. Advice appreciated.

    • Default Gravatar
      JonathanJuly 27, 2017

      Hello Tania,

      Thank you for your inquiry today. As of the moment, we are unable to give you a specific advice which route to take, as we don’t know all the present circumstances that need to be weighed on. Usually, your options may be around no credit check loans, small personal loans, and bad credit loans.

      Please be advised that you may need to deal with higher rates/fees for loan application, so you and your husband must be ready for this responsibility to avoid re-occurrence of hardship.

      You may also talk to a free financial counselor at the 1800 007 007.

      Hope this helps.

      Cheers,
      Jonathan

  10. Default Gravatar
    KrystalJune 5, 2017

    Hi my partner and I are in need of a new car, however he is on bankruptcy until Jan 2018. He is the sole income earner and I receive FTB. We do have dependents and are finding it very difficult to find a company who can help us out in our current situation. Are there any companies which could help us out with a car loan?
    Thanks.

    • Default Gravatar
      Maddo1June 19, 2017

      If that’s the case, can your partner not get a loan or car finance through a car yard? I am currently bankrupt until Dec 2017 and my partner just got a car loan.

    • Default Gravatar
      JonathanJune 20, 2017

      Hi Maddo1!

      Thanks for the comment.

      Approval of your car loan would depend on many factors and it’s recommended to talk this out with your prospect lender.

      Hope this clarifies.

      Cheers,
      Jonathan

    • finder Customer Care
      HaroldJune 5, 2017Staff

      Hi Krystal,

      Thank you for your inquiry.

      Typically, Secured loans can be easier to be approved for the car loans. You may want to check the available option/s for car loan here.

      I hope this information has helped.

      Cheers,
      Haro

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