Bankruptcy Wagga Wagga, Liquidators Wagga Wagga, Insolvency Wagga Wagga

Although bankruptcy has a lot of financial repercussions, it certainly does not signify the end of the world. Many folks file for bankruptcy for a number of reasons, and this figure only increases with the tough economic conditions that we observe today. According to data from the Australian Financial Security Authority (AFSA), there were 7,466 cases of bankruptcy in Australia in the September 2014 quarter alone. Getting bankruptcy advice is imperative so you become aware of exactly what happens financially when you declare bankruptcy.


There are two types of bankruptcy: undischarged bankruptcy and discharged bankruptcy. Undischarged bankruptcy means that you’re still in the process of bankruptcy and are unable to secure any kind of loan. Discharged bankruptcy signifies that you are no longer bankrupt, and can obtain a loan with various specialist lenders. Bankruptcy generally lasts for three years but can be extended in some circumstances.


Unfortunately, the banks do not specify the reasons for your bankruptcy and this can make it very difficult to get a home loan approved when you are eventually discharged. Whether you will be able to purchase a home after bankruptcy rests on various factors, including the kind of loan you’re seeking and how you manage your credit rating once declared bankrupt. What is definite is that your spending capability will be constricted, and repossession of property is common.


Can you get a home loan approved after bankruptcy?


There are a variety of specialist lenders providing home loans to borrowers that have been discharged from bankruptcy for as little as one day. Even though many of these loans feature a higher interest rate and charges, they are nevertheless an option for individuals that are serious. Most of the time, a bigger deposit is required and there are stricter terms and conditions in comparison to standard home loans.


There are various differences between lenders for discharged bankruptcy loan approvals. A couple of lenders will even supply reduced rates to people whose finances are in good condition and who have excellent rental history, if applicable. The period of time between your discharge and loan application will equally influence the end result of your application. Two years is typically recommended. Additionally, maintaining a regular income and employment are likewise details which will be taken note of. A lot of bankrupt individuals will also proactively try to strengthen their credit rating quickly to decrease the difficulty of bankruptcy once discharged.


Factors to consider when applying for a home loan once discharged.


Deciding on a suitable lender is crucial, so it’s a good idea to choose a lender that not only grants loans to discharged bankrupts but one that is renowned and trustworthy. By doing this, you’ll feel comfortable that you’re getting decent terms and conditions and your application is more likely to be approved. There are a few untrustworthy lenders on the market that take advantage of the financially vulnerable, so please be careful. Another useful factor to consider is that you should not apply to more than one lender at a time. Every loan application surfaces on your credit history, and numerous applications all at once are viewed negatively by lenders.


Pros and cons of home loans for discharged bankrupts



You can still a loan. Even though it may be difficult, it is still feasible for discharged bankrupts to get a home loan approved.

The longer you have been discharged, the easier it gets. Spending time restoring your finances shows the lenders that you’re financially responsible.

Your credit rating will improve. Effortless tasks like paying your bills on time and producing steady income will improve your credit rating.



You can’t obtain a loan until you are discharged. A lot of lenders will not approve any loans to those that are undischarged to prevent risking any additional financial hardship.

Increased rates and fees. In general, interest rates and fees will be increased for discharged bankruptcy loans. You can only acquire lower interest rates with a larger deposit.

Record of bankruptcy. You will have a record of bankruptcy on your credit history for seven years after discharge, and your name will always be on the National Personal Insolvency Index (NPII).


Bankruptcy is never an enjoyable experience, but it does not imply that you will never own a home again. As a result of the complexity of bankruptcy, it’s vital to seek professional advice from the experts to make certain you understand the process and therefore make sensible financial decisions. For more details or to speak with someone about your circumstances, contact Bankruptcy Experts Wagga Wagga on 1300 795 575 or visit