Bankruptcy

I dont' know if annullment means void from the begining or not. If it did it would be like the bankruptcy never happened.

Re getting finance – its hard to give you decisive answer without looking at the whole situation/application. Essentially, you either need to look at a specialist lender which will charge you a higher interest rate of 9's% and a set up fee of about 1.5% of the loan amount. or you can look at a mainstream lender but this is much tougher. Depending on the strength of the application  and how long you have been discharged – you may be able to go onto the loan as a guarantor (if you want to jump on the title) but you will need to have a second applicant (say your wife) service the entire loan without using your income. Getting through a specialist lender will be much easier but more expensive.

Hi can you give me some idea's of theses special finanace lenders are shahn.

Thanks Murray

Hi gags

I've been told that it's illegal to give an undischarged bankrupt credit.  I don't know if this is factually correct but we've always taken it as correct.  This has left us with the option of selling the undischarged bankrupt a property with a Lease/Option (not a credit contract) but, the time involved to have the bankruptcy disappear off the credit report is just too long for us.

We've often sold with Instalment Contracts to discharged bankrupts and, overall, it's worked out well, i.e. we found their default rate to be the same as everybody else.

Cheers, Paul

Adding on…

If you have good banking records for 24 month and you have been discharged from bankruptcy for at least 24 month, i know Westpac is happy to lend up to 90% as i done 2 loans with them only in the last 6 month for discharge bankruptcy…

Specialized lenders like Pepper, Resimac, Perpetual etc…has a special product for 1 day discharged bankruptcy- rates starts from 8.85%!!!! LVR restricted  to under 80%.

A majority of banks won't touch discharge bankruptcy….

But there are still a handful that would consider up to 80% depending on how long the bankruptcy has been discharged for and the reason for the bankruptcy – ie AMP bank, Credit unions, CBA etc..each bank has different tolerance level and LVR.

I think there is kind of 2 types of Bankruptcy , there is Part IX Debt agreement and the full on Bankruptcy .

I am involved with the first one and the restrictions are almost the same except I can leave the country and dont loose my house and so on .

Saying that I am not sure the main difference when I go for a finance , I am sure I may have a easier time to obtain finance but its still on my files for 4 yrs ( I think )

Please inform me if I am wrong

thanks guys

Hi gags

It's just a personal opinion but I won't sell to someone, using any form of VF, until they're discharged.  Of all the mistakes we've made since we started in this business, the one that always comes back to bite us the most is rushing the choice of your buyer.  It's natural because you have holding costs but the grief it causes down the road easily surpasses these holding costs.  The voice of hard earned experience 

Cheers,  Paul