Looking for a mortgage after bankruptcy?
Last updated: 06 October 2025 | Estimated read time: 3 Minutes
If you’ve experienced bankruptcy, you’ll know how challenging it can be - emotionally, financially, and personally. It’s a difficult chapter, but it doesn’t define your future.
Once your bankruptcy period ends, there are steps you can take to rebuild your financial wellbeing and even work towards home ownership again.
How long does bankruptcy last in Australia?
Bankruptcy typically lasts for three years and one day. If you apply voluntarily, it ends three years and one day from the date the Australian Financial Security Authority (AFSA) accepts your application.
If a creditor initiates the process, it ends three years and one day from when AFSA receives your statement of affairs.
After this period, you’re officially discharged and can begin focusing on restoring your financial standing.
How long does bankruptcy stay on your credit report?
What is bankruptcy?
Bankruptcy occurs when someone is unable to repay their debts. It can affect anyone — regardless of age, income, or occupation. Often, it’s triggered by unforeseen events like:
- Job loss or redundancy
- Illness or injury
- Uninsured financial loss
If you’re struggling to meet your financial obligations, bankruptcy may be declared voluntarily or initiated by a creditor through legal proceedings.
For more information, visit the Australian Financial Services Authority.
Tips on how to recover from bankruptcy
Rebuilding takes time, but there are steps you can take:
Once discharged, you can begin restoring your credit profile and exploring financial options.
Can you get a home loan after bankruptcy?
Yes, there may be options available. If you’ve been discharged (even by just one day) or entered into a debt agreement, some lenders may be able to help.
At Pepper Money, we understand that real life happens. We look beyond credit scores to understand your full story, including how your financial situation has changed since bankruptcy.
How can Pepper Money help with a mortgage after bankruptcy?
As a non-bank lender, we take a more flexible approach. We’ll talk with you to understand:
- What led to your credit issues
- What’s changed since then
- Whether you’re now in stable employment with reliable income and savings
If you meet our eligibility criteria, we may be able to help with:
- Finalising a debt agreement
- Consolidating debt into your home loan to reduce the payments you may have to manage
- Finding a mortgage that suits your current situation
We’re here to help.
If you’re ready to explore your options, we’re here to help without judgement.
Call our Lending Specialists on 137 377, enquire online or speak with your Pepper Money accredited broker.
Contributor | Neil Culkin, Head of Credit and Settlements
Neil has a 20-year career in credit provision. At Pepper Money, he oversees the underwriting and credit control of all consumer finance loan applications. He is also responsible for updating lending policies and guidelines. Read more.
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Resources to help with credit issues
It can be tough to recover from a credit event. We've put some resources together to help you get back on-track.
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