Important Information Related to Bankruptcy Loan Applications
- Don’t apply while you’re bankrupt – wait until you’re discharged
- Keep on top of your finances in the meantime
- Find a finance broker that specialises in bad credit
It’s a scary feeling when your financial stability slides. A financial adviser can help you create and stick to a budget, and your utility companies may offer you a hardship payment plan if you speak to them about your situation.
Occasionally, however, there are certain aspects of your financial situation that are out of your control, and you may find yourself looking at bankruptcy. And if that does happen to you, you’re not alone. Every year, hundreds of people in Australia go through this stressful process.
The most important thing is that you don’t give up. You can improve your financial health by taking all the right actions – starting today.
Pay your bills on time, clear your debts, and do all you can to keep your finances in check. This will all pay off eventually, showing creditors you’re back in control.
Loans after bankruptcy
Obtaining finance (for example, a bad credit car loan) while you still hold your bankrupt status is pretty slim; lenders want to see that you have improved your position and are on the road to financial recovery before taking that risk.
Bankruptcy typically lasts for three years; however, it stays on your credit profile for five years. This can make it hard for you to obtain a loan after being discharged from bankruptcy. However, it is not impossible.
If you’ve recently been discharged from bankruptcy, be careful not to apply for a stack of loans at once, as this will appear on your credit profile and may drop your credit score. Apply for only one loan at a time, making sure to do your research and look into which company may best suit your needs.
So, in a nutshell, yes – you can get a loan if you’ve been declared bankrupt. However, you’ll have to be discharged from bankruptcy before most lenders will oblige. Brokers such as Rapid Finance have a ‘second chance’ approach when it comes to their clients, helping thousands of people get back on track and on with life.
So if you’ve recently been discharged from bankruptcy and are looking for finance, call us on 1300 467 274