I broke up with my abusive husband 1yr ago now, since doing so, he has refused to pay any debts that we had, an they're all in joint names as we had a business together, my car and vehicle I use for work are still under finance, I have no equity in either, I have paid all debts off over the last year totalling tens of thousands, kept up with the two above loans, but hvent been able to afford the mortgage on our house and prooerty, and have had it for sale unsuccessfully, the price is now much lower than what's still owed to the bank, (about 50k deficit ATM) and there's still $7k owing to ato for our BAS for our cancelled partnership, and about $4k behind on rates. He took everything we online outright, and left me with all the debts. We have 3 kids he has seen for some time, due to abuse issues etc, he also refuses to pay child support. I no longer know where he lives or works. It's going to take me far longer than the 3yrs of bankruptcy to pay off that debt, and with rent and two loans I don't think I'd really be able to afford it anyway as my works seasonal, never know how much I'm going to earn. I don't plan on going o/s, I'm self employed in agricultural work, and I can't see it affecting me too badly over the next 3yrs as the youngest is only 3, I just want to hear from anyone who has had experience with bankruptcy, how hard it was to move on afterwards...... I will be able to continue to pay my loans and keep my vehicles while bankrupt apparently as they're under the required level as I owe more than what they're worth, and they're secured loans. Will I be able to borrow afterwards?? I have spoken to financial councellors and attained legal help, and it seems like the best option.... Thanks if u can help sorry it's so long :)
4 Replies
I would still do my best to avoid declaring bankruptcy. At the end of the day if you have no other option and you've seeked professional advice then go for it and don't let anyone on here make you feel bad about it. You have to worry about you and your kids not your ex husbands debts. However, still do your best to avoid it. It does work out for some people but for the most part it is very difficult after bankruptcy. You will not be able to borrow any money, and if something very serious comes up you will be stuck. It may even effect your ability to rent. My sis did it and it has damaged her life, even though she's stress free because of the debt been swiped away she now struggles to obtain a car loan etc
First thing first go see a financial advisor find out if you can consolidate all the loans into one loan with one payment that way your not getting charged heaps of interest. Also call the ATO and explain your situation and try and work out a payment plan with them. In times that we have struggled I have found if your up front and honest with your debtors they are usually willing to work with you. Also keep in mind when your house does sell all the debits you have paid ur husband will owe you back pay for them so even if he gets out of paying them now he will pay eventually.
I forgot to mention I'm waiting to be served with papers from banks solicitors, I hve already been thru the ombudsman service, the house is getting taken, we're over $20k behind in repayments and I can't afford $525 a week mortgage let alone the arrears. I feel like Why should I pay the rest of it off it will take me more than the 3 yrs of bankruptcy to do so and adversely affect our quality of life. I haven't been through property settlement but court orders mean nothing to creditors and when he ignored them as well all I can do is breach him over and over and the courts can't make him pay, they'll eventually send him to jail, he's been before 3x and has told me he'd rather go to jail than pay me a cent. He has also gone back to self employment as he was workin for wages for 2 mths so I actually received child support off his employer
I'm normally pissed with people declaring bankrupt because they sound like they are taking the easy way out, not owning their problems etc.
it sounds like you've tried so very hard and there is absolutely no realistic way you could do anything else.
I think as long as your prepared to live in a cash economy (buy second hand, pay cash and save up etc) I think that declaring bankrupt is the way to go for you.