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?

Yes, you are able to get a loan if you are a discharged bankrupt or even if you are currently bankrupt. 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 bankruptcy listed on your credit file, 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
Security Logo

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
  • Bad credit borrowers OK
  • Quick and easy Approval
  • No Credit Checks
Go to site
Promoted
Rates last updated April 21st, 2018
Name Product Max. Loan Amount Term of Loan Turnaround Time Costs Fortnightly Repayment $1,500 Product Description
Sunshine Short Term Loans
$2,000
9-15 weeks
30 Minutes - conditions apply
20% of loan amount + 4% of loan amount each month
$396
Apply online with Sunshine Loans and you could borrow up to $2,000 paid directly into your account. Family Business since 1999.
Ferratum Cash Loans
$1,900
up to 6 months
Same Day if approved
20% of borrowed amount + 4% of borrowed amount each month
$396
Ferratum lets you apply for up to $1,900 without a credit check.

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.

What options for I have for a loan while bankrupt?

BrandDoes it approve bankrupt applicants?Criteria
Australian Lending CentreYesYou're able to apply. Standard lending criteria will apply.
Cash ConvertersYesYou can be approved if you've been discharged from a Part 9 Debt Agreement.
Cash TrainYesYou can apply as long as you meet the minimum requirements.
Dollars DirectNoYou cannot apply.
Fair Go FinanceYesYou need to have entered into bankruptcy at least 12 months previously.
FerratumYesNo credit checks will be conducted when you apply.
Loan RangerNoYou cannot apply.
Max FinanceYesYou can apply if you are a discharged bankrupt.
MyCashFinanceYesIf you're bankrupt you are not eligible but can apply with a guarantor, if you are a discharged bankrupt you can apply.
NimbleNoYou cannot apply.
Needy MoneyYesYou cannot have entered into the bankruptcy or Part 9 in the past 12 months.
Payday 24/7YesNo credit checks will be conducted when you apply.
Rapid FinanceYesYou can apply, your application will be judged on a case-by-case basis.
Sunshine LoansNoYou cannot apply if you are a current bankrupt.
Wallet WizardYesYou can apply if you're a discharged bankrupt.
Yes LoansYesCurrent or discharged bankrupts can apply.

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 file. Bankruptcies will show on your credit file 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.
  • 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.

Understanding bankruptcy: The questions we’ve been asked

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.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

63 Responses

  1. 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?

    • Staff
      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

  2. 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.

  3. Staff
    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

  4. 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?

    • Staff
      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

  5. 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

    • Staff
      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

  6. 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

  7. 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

    • Staff
      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

  8. Default Gravatar
    ArnoldApril 17, 2017

    I am a discharged bankrupt (16 months). Now retired on 2-pensions. I can afford a new car payment now. Had A1 credit rating before. My only asset is the car I have but is costing so much in repairs. The reasons for my bankruptcy were due to bad advice. Really feel embarrassed re current situation. Would it be possible to obtain a low interest loan preferably with Toyota. How do I find out my credit score. Many thanks.

    • Staff
      LouApril 18, 2017Staff

      Hi Arnold,

      Thanks for your question.

      The lenders we have listed above may consider you for a loan, subject to other eligibility criteria. You may apply for a car or personal loan and use the proceeds to buy a new car.

      You can check your free credit score through this page.

      Cheers,
      Anndy

  9. Default Gravatar
    AdamApril 11, 2017

    I was wondering if I could apply for university fee help while I’m bankrupt, ie hex?

    • Staff
      HaroldApril 12, 2017Staff

      Hi Adam,

      Thank you for your inquiry.

      Typically the eligibility requirements for HECS‑HELP are the following:
      – be studying in a Commonwealth supported place;
      – be an Australian citizen; or
      – be a New Zealand Special Category Visa holder who meets the long-term residency requirements; or
      – be a permanent humanitarian visa holder;
      – be enrolled in each unit at your university by the census date;
      – meet the relevant HECS-HELP residency requirements;
      – submit a valid Request for Commonwealth support and HECS‑HELP form by the census date (or earlier administrative date) to your university.

      You can always contact Study Assist to confirm your eligibility and the available options for you.

      I hope this information has helped.

      Cheers,
      Harold

  10. Default Gravatar
    SoniaFebruary 25, 2017

    Hi,

    I was wondering if I need to declare that I have been bankrupt when applying for a loan after the 5 years?

    I am looking at a $10,000 loan and bankruptcy date Aug 2011.

    Thanks in advance for your help.

    • Staff
      MayMarch 13, 2017Staff

      Hi Sonia,

      Thank you for your inquiry.

      Sorry for the delayed reply. Although bankruptcy stays on the credit file for five years, please keep in mind that once you’ve been bankrupt your name is permanently recorded on the NPII. So yes, when you apply for a loan, you may need to mention to the lender that you have been bankrupt so they would be able to offer you loan options that suit your situation.

      Cheers,
      May

Ask a question
Go to site