bankruptcy

Bankruptcy 

Home Loans for Clients Discharged from Bankruptcy 

At Sanford Finance, we understand that life’s circumstances can sometimes lead to financial difficulties, including bankruptcy. Being discharged from bankruptcy doesn’t mean homeownership is out of reach. We specialize in providing tailored mortgage solutions for individuals who have been through bankruptcy, helping you take the next steps towards a brighter financial future. 

How Bankruptcy Affects Your Credit Rating 

Being discharged from bankruptcy can impact your credit score and make obtaining a traditional home loan more challenging. Bankruptcy remains on your credit report for up to five years from the date of listing or two years from the date of discharge, whichever is later. This can limit your borrowing power, but it doesn’t have to stop you from pursuing your goal of homeownership. 

Alternatives to Bankruptcy 

If you’re struggling with financial hardship but want to avoid bankruptcy, there are alternatives that may still allow you to qualify for a home loan in the future: 

• Part IX Debt Agreement
  A Part IX Debt Agreement is a legally binding arrangement between you and your creditors to repay a portion of your debts over time. While this option also impacts your credit rating, it is typically viewed more favourably than bankruptcy by lenders. With the right financial planning, you may still be able to access home loan options. 
• Personal Insolvency Agreement (PIA)
  A Personal Insolvency Agreement allows you to negotiate with creditors to pay off your debts in a way that is manageable for you. This agreement gives you the flexibility to avoid bankruptcy while working towards financial recovery. With a PIA, some lenders may consider offering specialized home loans, although strict lending criteria will apply. 
• Informal Arrangement with Creditors
  An informal arrangement is a private agreement between you and your creditors. It doesn’t require court involvement and can help you settle your debts in a way that is manageable, without the formal process of bankruptcy. Lenders may look at this option more favourably compared to bankruptcy, giving you better chances of securing a loan.  

How We Can Help 

At Sanford Finance, we specialize in providing home loans to clients who have been discharged from bankruptcy or have entered alternative financial arrangements. We work closely with specialist lenders who understand your situation and offer: 

• Home loans up to 95% of the property’s value (LVR), even if you’ve been discharged from bankruptcy. 
• Tailored lending options to suit your financial situation.
• A clear pathway to homeownership, with expert guidance every step of the way.  

Ready to Take the Next Step? 

We’re here to help you get back on track and achieve your dream of owning a home, even after bankruptcy. Let’s discuss your situation, review your options, and find the best solution to fit your needs. 

Call Sanford Finance on 02 9095 6888 or Book a consultation today to explore your home loan options after bankruptcy.