diff --git a/gui/qt/__init__.py b/gui/qt/__init__.py
index 1b725facb..35fabc95c 100644
--- a/gui/qt/__init__.py
+++ b/gui/qt/__init__.py
@@ -185,7 +185,7 @@ class ElectrumGui:
         run_hook('on_new_window', w)
         return w
 
-    def start_new_window(self, path, uri):
+    def start_new_window(self, path, uri, app_is_starting=False):
         '''Raises the window for the wallet if it is open.  Otherwise
         opens the wallet and creates a new window for it'''
         try:
@@ -195,7 +195,11 @@ class ElectrumGui:
             d = QMessageBox(QMessageBox.Warning, _('Error'),
                             _('Cannot load wallet') + ' (1):\n' + str(e))
             d.exec_()
-            return
+            if app_is_starting:
+                # do not return so that the wizard can appear
+                wallet = None
+            else:
+                return
         if not wallet:
             storage = WalletStorage(path, manual_upgrades=True)
             wizard = InstallWizard(self.config, self.app, self.plugins, storage)
@@ -270,7 +274,7 @@ class ElectrumGui:
         self.timer.start()
         self.config.open_last_wallet()
         path = self.config.get_wallet_path()
-        if not self.start_new_window(path, self.config.get('url')):
+        if not self.start_new_window(path, self.config.get('url'), app_is_starting=True):
             return
         signal.signal(signal.SIGINT, lambda *args: self.app.quit())
 
diff --git a/gui/qt/installwizard.py b/gui/qt/installwizard.py
index ac45a0684..9ef2be47e 100644
--- a/gui/qt/installwizard.py
+++ b/gui/qt/installwizard.py
@@ -227,10 +227,10 @@ class InstallWizard(QDialog, MessageBoxMixin, BaseWizard):
         self.name_e.setText(n)
 
         while True:
-            if self.storage.file_exists() and not self.storage.is_encrypted():
-                break
             if self.loop.exec_() != 2:  # 2 = next
                 return
+            if self.storage.file_exists() and not self.storage.is_encrypted():
+                break
             if not self.storage.file_exists():
                 break
             wallet_from_memory = get_wallet_from_daemon(self.storage.path)