I owe $20k in legal fees and am wondering if I can declare bankrupt for this? I am a single mum in fulltime employment and am currently paying back $100 a week and this is killing me. I didn't even win the case, which is even more insulting. Basically I had a lawyer and we went to court twice over property issues and I was slapped with a $20k legal fee from them. I just to declare bankruptcy. I still live at home and definitely not intending on buying a house anytime soon.
4 Replies
Speak to a financial coubsellor through Centrelink, salvos etc it's usually free and they can tell you your options
Not everything can be made to just *go away* by bankruptcy.
Those exemptions are usually debts which are to the government but there are other exclusions such as those you have been ordered to pay.
I know someone who is a single mum to a 20 something year old who moved back home (she refers to him as her dependent in all cases even though he spends more time in services than at home, he isnt thst dependent he is a cheque). Went through the whole divorce bit had no kids with him. Wouldn't have been covered by legal aid because they had no kids together. And the settlement she wouldve been forced to pay wouldve been about $20 000 for a car she wanted to keep but didn't want to pay for. But she kept going back because she was determined that she was due alimony even though she was married to the guy for less than 2 years. She has terminal cancer so is more interested in raging at the world and anyone in range than just living out her last year or couple of years peacefully because how dare anyone else live in peace while she is dying. While I'd love to support her in this time support isnt what she wants. She wants to be worshipped and fawned over to some incredible degree I dont know how high it reaches because nothing so far has satisfied her and she lashes out at everyone including her adult son and elderly mother.
Legal fee's of $20k for a single mum for property cases while it's not that I don't believe you. Sounds more like a property settlement.
And the situation I know of that would involve such amounts are due to retaining the property. There would be other consequences for not paying. So you can declare bankruptcy but without the full story I cant say what consequences there would be of such an action if you get my drift or even if the settlement would be included in the bankruptcy or if the asset would be forfeit.
In her case the car would be forfeit.
I doubt you are that woman the one I know has never had a job in her entire life.
Her plan had been to cash in early on her life insurance throw her mother in a public nursing home and her son in public system drug rehab and hit cruise liners until she died on the $40k early terminal diagnosis pay out but her insurance isnt that kind of insurance and the chemo and cancer have induced psychosis so she has just locked them all in the house and gone feral in her last year's living off her mother's aged pension and her sons disability pension. As the settlement would literally eat the lions share of her carers payment and otherwise without being tied to them she has nothing. Very bitter woman.
As someone who has declared bankruptcy for more than that... Please don't.. It stick with you and takes away a sense of achievement in getting ahead on your own.. I was left with no other choice I had level 9 debt agreements in place for everything and then lost my full time job ... putting me in a situation where I could no longer afford to pay them.. I wish I hadn't and just struggled through.. I haven't been able to get any kind of finance now for 5 years and I have 2 years to go...
I have declared bankrupt in the last few months so if you need advice feel free to let me know and I will give you contact details.