Prior Bankruptcies And Finding The Grey Area


Our client sought to refinance a warehouse property that he owns but he was not having success because he had a bankruptcy within the past 5 years. Typically banks won’t consider loans where the sponsor had a bankruptcy within the prior 7 years. This rule stands firm for many banks and they won’t consider any exceptions.

Some banks, however, will make an exception to this rule based on extenuating circumstances. In effect, they are willing to hear the story of what happened, and if warranted, will make an exception to credit policy.


We were able to identify one of those banks who was willing to take the time to hear the story, understand what occurred and build a relationship with the customer. We were then able to get financing arranged because we were able to tell the story, even though the buyer had a bankruptcy within the past 5 years.

We were able to take what is typically a black and white rule, and find the grey area to get the deal done.


Keep in mind that every deal is unique, and just because you’ve found one door closed, doesn’t mean there’s not an open door right around the corner. Raisal is here to find the solutions you need to close the deal.

Leave a Reply

Your email address will not be published. Required fields are marked *