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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100% confidential application

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 May 24th, 2019
Name Product Maximum Loan Amount Term of Loan Turnaround time Costs Fortnightly 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
$2,000
up to 12 months
Within 48 hours
20% establishment fee + 4% monthly fee
$396
Cash Converters offers this loan from $400 that gives you up to 12 months to repay.

Compare up to 4 providers

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.

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79 Responses

  1. Default Gravatar
    FrancisMarch 27, 2019

    Hi im currently bankrupt it started may last year im in need to get a loan $2500 for my dental expenses and some bills too im working at the moment but still under probation how can i apply for loan or is there a way where can i get a loan in a week?

    • Avatarfinder Customer Care
      JohnMarch 28, 2019Staff

      Hi Francis,

      Thank you for reaching out to Finder.

      The page we are on offers a selection of lenders that you could approach and inquire about applying for a personal loan. Please note that most lenders will require you to have a guarantor in case you do not meet the requirements necessary to take out the loan on your own. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!

      Cheers,
      Reggie

  2. Default Gravatar
    RebeccaFebruary 14, 2019

    I’m currently in a part 9 agreement with less than 18 months left of 5 years.
    I’m desperately trying to get finance for some new household appliances as my current ones are on their last legs.
    I work full time and have a decent amount of my wage left over cover any repayments. However, I can’t seem to get a loan from anyone.

    • Avatarfinder Customer Care
      JoshuaFebruary 20, 2019Staff

      Hi Rebecca,

      Thanks for getting in touch with Finder. I’m sorry to hear about your situation.

      Upon checking, I could see that you are in the right place. Have you tried the lenders listed above? You can compare your options based on maximum loan amount, term of loan, and cost, to name a few. You can then click on the “Go to site” green button to be redirected to their website where you can start your application or get more information.

      Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  3. Default Gravatar
    January 22, 2019

    I need a debt consolidation loan for a total of approx. $8000 to reduce my fortnightly/monthly repayments and I am a discharged bankrupt. I am not currently in arrears and all my current payments are up to date. What is available for me?

    • Avatarfinder Customer Care
      JoshuaJanuary 27, 2019Staff

      Hi Ray,

      Thanks for getting in touch with finder. I understand you want to consolidate your loan.

      As a discharged bankrupt, you can still apply for a loan. However, you might have limited options and lenders might charge you higher interest rates.

      On this page, you will read some tips on how you can apply for a loan to consolidate your debts. You can also check the table above that lets you compare lenders based on term of loan, costs, and fortnightly payment, to name a few. However, please note that the maximum loan amount for the lenders listed above is only $2,000. You might still try other lenders on this page but the higher the amount you try to borrow, the harder it is for you to get approved. As this might be the case, you might still want to give them a try.

      Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  4. Default Gravatar
    December 3, 2018

    Looking to apply for $2400 loan for workplace
    re-training to gain employment. Currently unemployed
    and Part 9 active participant, yet to start receiving payments from centrelink. I have a fully operational car worth $7500 to put as security. Is this a possibility or will i be wasting my time? Thanks, Paul.

    • Avatarfinder Customer Care
      JohnDecember 3, 2018Staff

      Hi Paul,

      Thank you for reaching out to finder.

      finder provides guidelines as well as articles like this to help users who are currently seeking loans while in bankruptcy or unemployed. You may want to check the panel of lenders that are on this page to assess your eligibility in taking out a loan through them. There are lenders who assist users who are currently a Part 9 active participant like your self. Hope this helps!

      Cheers,
      Reggie

  5. 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

    • Avatarfinder 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

  6. 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

    • Avatarfinder 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?

    • Avatarfinder 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

  7. 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

  8. 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?

    • Avatarfinder 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

  9. 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.

    • Avatarfinder Customer Care
      JhezMarch 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

  10. Avatarfinder 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

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