I am a single parent carer who’s been left with $50000 debt out of the relationship. I’m going to speak to CAP next week about declaring bankruptcy.
For the past two years I’ve been struggling to keep our heads above water. I can’t work any more than 25 hours per week due to the carers requirements. I’ve drawn down on my super but I’m just getting no where.
I’d love to hear people’s experiences with bankruptcy. I understand basics but I’m concerned about affects on my insurance etc
Bankruptcy
Bankruptcy
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Money
15 Replies
Bankruptcy shouldn’t even be on your radar yet.
Speak to a financial advisor. There’s many places that can help you moving forward and paying off the loan (which is what bankruptcy makes you do anyway!)
There’s even commonwealth support that puts an injunction on you, pays your loan and you pay it back WITHOUT interest. It does mean you WONT be able to get another loan for at least 7 years. No credit cards and no phone plans.
But honestly, look at the debt. How much of it is actually yours ?
That’s my part of it. After 2 years? Really. I’ve seen a financial advisor. Even they threw their hands in the air over it.
You need a new financial advisor !
The commonwealth one was amazing. My sister had Been paying it off for 6 years and getting no where due to the Intrest, but when she went under the new scheme with the commonwealth help thing, she’s paid back just over half ((it’s been 7 months)) so look at another financial advisor ASAP
The commonwealth one? Can you provide more details. I’ve searched it and come up with nothing
She started by calling the National Debt Helpline on 1800 007 007 for free. She didn’t pay anything to get it started.
But if it’s as serious as you say, the debt help line could also talk you through bankruptcy
Or call debtfix
It’s not as bad as people make out and it gives you a fresh start! It’s easy to do, go to afsa website fill out the forms and email them. It is usually approved within a few days!
I’m not currently overdue anywhere (because my parents who are also pensioners) have been helping me but I can’t continue to be a burden on them. I ‘rob Peter to pay Paul’ every month.
You don’t need to be overdue and it won’t cost you to do it! Go to afsa.gov.au and click on insolvency and bankruptcy. There is all the info you need and has assets limits and what can/ can’t be sold.
Speaking as a financial counsellor please see one of us - not a financial advisor.
There is options that can be considered - debt waivers, negotiated affordable payment plans, full and final payments etc. By the sounds of things these debts are not all yours and this needs to be considered.
Bankruptcy lasts for 3 years and 1 day - don’t let anyone make the decision for you. I’ve assisted clients to go bankrupt and mentally and financially it was the best thing for them, just ensure you seek legal advice.
Good luck with whatever you decide xx
3 years ago my partner declared full bankruptcy on our $50,000 joint loan. I took the frozen interest debt in a part 9 debt agreement. Which means we’re still paying it off but at a no interest agreement with our bank. We have 2 years to go and it was the best decision we have ever made. We have savings and a life now. It’s not something we entered into lightly and it was scary as hell. But with all of the information we made an informed decision.
Bankruptcy saved us.
We have just been released from the 3 year term of actual bankruptcy. We have 2 years to go of it being on our file. You don’t repay the debt, that’s what’s bankruptcy is, no money to pay it, so they wipe it, hence the timeframe of it affecting you. UNLESS you earn over 1050 per week, then they take 50% of anything early over that. You are looked at in terms of assets and anything of high value gets taken, however we still were able to keep our 2 cars, kept all our household goods etc. We didn’t have money to own expensive things in the first place. You have a trustee for the time of bankruptcy (3 years) and must consult with them regarding large purchases Eg expensive car, boat etc, overseas trips and job changes etc. If you can prove the o/s trip is a gift, you’re still able to go. Not that we did, again couldn’t afford it, but they inform you of all this.
During this time we had phone plans, electricity and rentals without any dramas. It’s not the financial death trap is once was. During this time we taught ourselves how to budget, save for things we wanted and live within our means. Sure 5 years is a long time, but the financial relief we are feeling plus lessons we learnt in the meantime, far outweighs having massive debt hanging over your head with a suffocating feeling of no way out. I say call and enquire about it, there’s no harm in finding out the facts from them directly before making a decision.
I have done it before and honestly it was the best thing I ever did. I had separated from my daughters father and I was drowning! I spoke to financial counsellors and advisors and the available options for debt agreements etc, but I just couldnt get it be able to work for me. To be honest, those 3 years taught me to live within my means, create savings plans and not be such an impulsive purchaser. It has created great money managing habits. I came out of the bankruptcy period in 2009, I purchased a house in 2013 with my husband. I havent had a credit card since then by choice and I have only just gotten a car loan now (by choice, not because I wasnt approved, I just chose to buy only what I could pay cash for and to be honest a little afraid of getting into debt again) It hasnt really impacted any financial matters for myself and I have a very high credit score currently (750-800) In saying that, banking & financial matters have changed significantly in the last couple of years with the royal commission so my experience may not be the same as it would be today. Good Luck!
Please don't do that. It took me 15 years to get past it even mentally. Here I am nearly 30 years later having to declare that's part of my past. Please check every single avenue before you use this as an option. 😭
I was in this same position. I lodged bankruptcy and honestly I’ve slept so much better since. Yes it’s annoying not being able to own my own home again for a while or a car loan BUT I can afford the necessities and even relax. My debt was horrible and honestly completely caused by a relationship breakdown so it took a massive toll on my mental health. Life has been so much better