Bankruptcy is one of the most difficult times a person can go through, with far-reaching effects on their finances, emotional health, well-being and lifestyle. However, all is not lost - at Pepper Money, home loans for people who have been discharged from bankruptcy are still a possibility.
Bankruptcy at a glance
Bankruptcy can affect anyone regardless of age, income, gender or occupation. It occurs when someone – either an individual or a company – is unable to repay their debts. Sadly, circumstances like unemployment or redundancy, an uninsured loss or some other completely unforeseen difficulty that was out of your control can all have such a serious effect on your financial situation.
In the event of being in a situation where you are no longer able to pay your debts, you can either declare bankruptcy voluntarily or legal proceedings can be taken against an individual or a company by a creditor in the hopes of recouping some or all of the money owed.
You can find information on bankruptcy and how it works on The Australian Financial Services Authority.
Getting your finances back on track
If you have been declared bankrupt, you can help get your finances back on track if you:
- Co-operate with your Trustee in Bankruptcy.
- Avoid applying for loans until your bankruptcy is discharged.
- Get into the routine of running a realistic household budget.
Once your bankruptcy has been discharged, you can work your way to restore your financial goals and potentially buying a home.
Many bank lenders can be uneasy about lending to someone who has previously been declared bankrupt, and for this reason many such applicants have had their loan application declined. However, don’t think that because you have been declared bankrupt no lender will ever want your business again.
At Pepper Money, we have flexible home loan solutions which may be suitable for people with an impaired credit history, provided we can be satisfied that your application otherwise complies with our normal credit assessment and loan suitability criteria.