Hi. I'm looking for other people's experiences with bankruptcy. My husband and I are considering bankruptcy. We are waiting to see a financial counsellor. My husband has lost his job and is struggling to find work in his field, actually any job, I work 2 jobs and study full time. I am still paying off debt from my previous marriage, he is still struggling from the debt from his previous relationship and I now have a massive legal debt from my sons neonatal death. We pay everything, but its at the point, more is going out than comes in. It seems everything just keeps going wrong, we just get one top of it and something else screws up. We think bankruptcy is our only option now. I am wanting other peoples experiences, was it like a death sentence?, is there a light at the end?, what happens after bankruptcy?.
4 Replies
Been there done that... Don't do it unless it is a last resort. Talk to your financial counselor. They should be able to help you negotiate reductions, more time, etc. You are only actually bankrupt for three years but it takes 10 before anyone will touch you for any finance - even interest free store loans or a credit card. Forget a home loan :( It also has a significant toll on your relationship - doesn't stop the financial pressure - just changes it. Good luck.
It sounds like in ur case that it would be the right thing to do! It's 3 years and 1 day. You may find issues for up to 5 years after declaring to get loans but after you have been in so much debt it would be the last thing you want more debt. It clears all the debts you list apart from government debts. The only list after discharge your name will appear on is the insolvency index but people have to pay to search that. There is light at the end of the tunnel. It is like a fresh start! Good luck!
Whatever you decide dont let anyone tell you a Debt Agreement is better. It is a form of Bankruptcy and you will still be listed on the npii. You will still be unable to obtain credit for 5 years. Also, it's not so bad. You can get credit once the listing drops off your Equifax report. I have done a debt agreement, it was the biggest mistake. If this situation happened to me again I would not hesitate to go Bankrupt. Also now work in this field.
Ive done my time amd am just over 5 years since declaring, i have a credit card and a phone contract for the first time in 7 years (no one would touch me due to drowning in debt prior to declaring) 3 years and 1 day of no travel, no problem with that. Working towards buying a house after the 7 year mark (around 18months away). I had 150,000 debt due to owning a house with my mum, repossession from the bank when she walked out and declareded bankruptcy the whole thing fell on me. When i declared i was a single mum on a pension so there really was no choice for me.