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

  • Centrelink borrowers considered
  • Fast approval service
  • Borrow up to $2,000
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100% confidential application

Sunshine Short Term Offer

This is a short term loan offer with a fast and easy online application for bad credit borrowers who are employed. You can apply today to get approved for up to $2,000.

  • Loan amount: $2,000
  • Loan term: 9 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 - Must be employed
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Rates last updated September 25th, 2017
Name Product Max. Loan Amount Term of Loan Turnaround Time Costs Fortnightly Repayment $1,500 Product Description
Sunshine Short Term Loans
$2,000
9 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.
Cash Train Loans
$2,000
10 weeks or 3 months
1 Business Day
20% of principal amount (establishment fee) + 4% monthly charge
$396
Apply for a Cash Train loan and get up to $2,000 sent straight to your bank account. Fast online application
Ferratum Cash Loans
$1,900
up to 6 months
Same Day if approved
20% of borrowed amount + 4% of borrowed amount each month
$396
A small loan from Ferratum lets you borrow up to $1,900 without a credit check

Compare up to 4 providers

How can I be 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.

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54 Responses

  1. 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.

    • Staff
      JonathanJuly 27, 2017Staff

      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

  2. 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.

    • Staff
      JonathanJune 20, 2017Staff

      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

  3. 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
      AnndyApril 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

  4. 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

  5. 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

  6. Default Gravatar
    JulieannJanuary 28, 2017

    Hi,
    My bankruptcy began on 21st March 2014 and ends on the 21st March 2017.
    However, due to a car I purchased in August 2012 which was mortgaged I think it’s called through a finance company it was not able to be included. I have managed to make every payment for this car and the will be paid in full with final payment on the 14 August 2017.
    Will it be possible for me to get a personal loan for approximately 13000 to pay out a hex debt do you think, considering even while bankrupt I made every payment on my car.
    Or is that irrelevant?
    Thank you for your time.

    • Staff
      MayJanuary 31, 2017Staff

      Hi Julianne,

      Thank you for your inquiry.

      You’d be best to get in touch with a lender featured above to discuss your loan options and chances of approval. Please note though that your approval for a loan will still be on a case by case basis, depending on the lender’s assessment your ability to service the loan.

      Cheers,
      May

  7. Default Gravatar
    PaulDecember 20, 2016

    Hi, I’m currently bankcrupt and my credit history has gone below average.
    I’ve been trying to get a loan for several weeks to no avail.
    I have a full time job and been with with the company for years. My only asset left though is an old car worth probably 2K.
    I just need to get a loan for emergency as a back up as I don’t have any credit cards nor savings at this stage.
    My credit rating is actually just 191..
    Can I possibly still Get a loan specially foe this upcoming Christmas?

    • Staff
      AnndyDecember 20, 2016Staff

      Hi Paul,

      Thanks for reaching out and I’m sorry to hear about your experience in trying to get a loan.

      Please note though that multiple loan applications in a short period of time may negatively impact your credit score and ultimately your future credit applications. It would be good to only apply for a loan where you think you have a good chance of approval.

      You may consider applying for a no-credit check payday loan as listed here. You can get in touch first with the lender you are interested in and enquire about your chance of approval given your situation. This way, you’ll avoid unnecessary enquiries on your credit file.

      Cheers,
      Anndy

  8. Default Gravatar
    JohnDecember 5, 2016

    Hi Elizabeth,
    I was recently discharged from bankruptcy, am cash poor, total assets worth 20k. I am self employed in logistics. I have been asked if I would be interested in stepping up into a larger vehicle and was offered a guaranteed $1950 gross per week. Obviously I want to take advantage of that offer but need $60k to purchase a suitable vehicle. The lenders above do not offer suitable loans. Can you suggest alternative options?

    Thanks in Advance

    Jon

    • Staff
      HaroldDecember 6, 2016Staff

      Hello John,

      Thank you for your inquiry.

      There are now a range of specialist lenders willing to offer business loans, some of which will consider borrowers who have been discharged from bankruptcy for as little as one day. We understand that you just recently discharged from a Bankruptcy, we hope this option will help you.

      I hope this information has helped.

      Cheers,
      Harold

  9. Default Gravatar
    stephenSeptember 19, 2016

    Im a pensioner on disability,im hoping to find someone who will help me pay my debts off.Im also bankrupt till march next year.My debts come to $1600.I just want to clear my name.Is there anyone who can help.I have tried for so long,to get a loan,but i keep getting knocked back.Can you help.

    • Staff
      ElizabethSeptember 19, 2016Staff

      Hi Stephen,

      I can’t give you any personal advice but there are a number of restrictions when it comes to lending money to currently bankrupt individuals. As your bankruptcy is intended to repay your debts, you’ll have trouble being approved for a debt consolidation loan while currently under bankruptcy.

      You may want to call the free financial counselling service who will be able to advise you of some suitable options. You can call them on 1800 007 007.

      I hope this helps,

      Elizabeth

  10. Default Gravatar
    MichelleJuly 28, 2016

    What kinds of % do you offer in a round about way

    • Staff
      ElizabethJuly 29, 2016Staff

      Hi Michelle,

      As a financial comparison service we don’t offer the loans ourselves, but you can compare your options on the page above. The lenders offer a range of loans that come at different costs depending on how much you borrow and for how long. You can click through to the individual review pages (by clicking on the name of the lender) to find out more about the cost structure and if it’s the right option for you.

      I hope this helps,

      Elizabeth

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