I went bankrupt 10 years ago due to some huge debts I was left with after leaving a bad relationship. I tried for 2 years to pay these off myself and just could not get anywhere. So I decided I deserved a fresh start, so I went backrupt. I applied for early release after 6 months and that was granted (I am actually unsure what this actually did for me). After 5 years, I applied for a small car loan through RACV and this was approved. The year after we purchased a house but just put it in my husband's name only (I had married the year before). 3 years later we purchased a investment property in both our names, nothing came up. I also changed our home into both our names and there was no issue.
Now I don't know if because I was very young and had no asset (except a car), my debts were wiped and now it is like it was just a bad dream (just how it should be). Now that 10 years have passed my credit file is clear. Other than my 2 mortgages I aim to not have anything on credit. If it means not having a brand new car or putting something on lay buy rather than my card then so be it. Now the bank are always sending me letters asking if I want a higher credit limit, I guess I am not seen as a risk anymore.
I was so stupid when I first moved out of home and get GE money finance for the things I needed to set up house. I couldnt pay it off and the interest at 28% was klling me. I have recently set up an agreement with a credit agency that now has the debt that I have a fortnightly direct debit (that is going to hurt me) to pay it off within a year. No more interest either.
Like CQueen said, look at gettign your debt put into one payment which freezes all interest then you should get somewhere with your debt. Soem of these agencies can even compromise with the people you owe money to to lower the amount that you owe.
There's always ads for Fox Symes at the top of the page - they will consolidate all your debts into one, and make special arrangements with the companies so you can pay it off slowly, with no interest. They take into acount how much you earn and how much you need to live as well, and most of the people I've heard from say they are actually better off NOW than they were before Fox Symes
I think your relationship and stress is worth a million times more then being bankrupt for 5 years. BIG DEAL.. 5 years is nothing, save what you can during that time if you can. Otherwise you and your partner have each and that is the most importnant.
Buying a house is to me so not important.. it will be nice one day down the track but having each other and being stress and being a stay at home mum is much mum more important then buying a house or a car or getting a personal loan for something.
Yep I agree but I think people are just explaining that there are options other than bankruptcy. And it's longer than 5 years...it's still affecting me now and it's been nearly seven years.
Hmm, I'm no expert but I'd try to avoid bankruptcy if possible. It can affect a lot of things. For an example, even when you take out an insurance policy for your car, home or business etc. the application form asks the question "have you ever been declared bankrupt?" and it can effect an insurers decision to insure you because you might be seen as higher risk. That's just an example of how it can filter into other area's of your life.
What about debt consolidation like someone else mentioned?
Also, not sure if you are already working, but if not, would you consider getting a PT job on weekends?
PS: FWIW we have one car. it's hard but it's do-able.
Last edited by ~mamaspice~; December 19th, 2009 at 06:58 PM.
I should say that even if you're still paying off the car then you'll get to keep it if you do declare yourself bankrupt as long as you're not behind in the payments. They won't take the car as it's still financed it doesn't belong to you does that make sense? It's the same if you go into the debt agreement.
What about a night/evening job? Packing shelves? Cleaning? Working in aged care? That way your partner could be the carer? If you put every cent you earnt into the debt you would prob be debt free in less than 5 years? I would think that bankruptcy would be an absolute last resort and while your debt probaby feels insurmountable - to stuff your credit for such a (relatively*) small debt would be a shame.
* I don't want to discount the stress your debt is causing but I believe with good advice you could avoid bankrupcy as $41K isn't huge
Have you thought of trying a financial budgeting company? My bro and his wife were getting themselves into a bit of financial trouble early last year and signed on with My Budget and are now doing quite well. They told them all their debts (including to parents) and I think they organised payment plans with creditors AND they even set aside money each month for savings....I think all their pay goes to them and they then give you money each week to live on....My bro thinks it is great - and if he ever needs money (e.g. broken down car) he just rings them and he can access his money (savings and money set aside for bills) from there, but they just let you know how this will affect your financial situation first (he describes it as 'a conscience' talking to him).
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