Bouncing back after bankruptcy
- Posted Managing a Loan
Bankruptcy is one of the most difficult times a person can go through, with long-reaching effects on their finances, emotional health, well-being and lifestyle.
However, all is not lost – at Pepper, home loans for people who have been discharged from bankruptcy are still a possibility.
Bankruptcy at a glance
Sadly, bankruptcy can befall anyone – circumstances such as unemployment or redundancy, an uninsured loss or some other unforeseen difficulty can all adversely affect your financial situation.
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.
You can either declare bankruptcy voluntarily or 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.
The Australian Financial Services Authority has more information on bankruptcy available on its website.
Getting your finances back on track
If you have been declared bankrupt, you can help get your finances back on track with these little tips:
• Co-operate with your Trustee in Bankruptcy.
• Avoid applying for loans until your bankruptcy is discharged.
• Get into the routine of a realistic household budget.
Once your bankruptcy has been discharged, you can work to restore your financial goals, including potentially buying a home for your family or purchasing an investment property.
Many bank lenders can be uneasy about lending to someone who has previously been declared bankrupt, and for this reason such applicants have had their loan application declined. However, there are reputable non-bank lenders, such as Pepper, that may be able to assist you, as we have flexible home loan solutions which may be suitable for people with an impaired credit history, provided we are satisfied that your application otherwise complies with our normal credit assessment and loan suitability criteria.
Don’t think that because you have been declared bankrupt that no lender will ever want your business again. Lenders, such as Pepper, may have home loan products that work for you.
Speak to a Lending Specialist or submit an enquiry online today to see how Pepper may be able to help.