Tell me why declaring bankruptcy is bad

[Pandora]

There is a govt website with a lot of information on this topic I will see if I can find it for you.

ETA: Here it is, on consumer affiars website

[mr dad of many]

if they declare bankruprty it takes 5 years after the date to even try to get a loan from anyone , or any other credit like mobile phones , store credits cards . she will be stuffed .when they do the person has have pretty good assets to back them up to get another loan , tell them to work out the company that they owe money , payment arrangements etc. you said she has no assets , computer , tvs , fridges ,washings machines, cars furniture they are assets . the company can reprosses items like that , she cant say my husband owns because then they have to show receipts in his name . her best advice talk to company thats she owes money . i know now companys that r owed money are using commercial agents to chase people to get there money back. the above items i mention are assets .

[AnyDream]

Muppity, have you spoken further with your friend about this? How did she take it?

[Kitt3n]

bankruptcy lasts for 3 years - but stays on your credit record for 7. your name will also be viewable for life on the public register.

for the first 3 years you cannot travel overseas without permission.

you cannot apply for credit for over appx $2500 = and you must make the debtor aware of your status.

they do not take your basic living essentials (contrary to popular belief!)

you cannot own a vehicle worth more than $5k

she may find it difficult to have utilities connected in her name.

thats about it

[Neenee Jellybeanie]

You STILL have to repay the money! You don't get out of your bills! They just take out a small amount over X number of years so while it prevents legal action being taken against you etc. you still have to pay the money back in the end anyway (if there's interest such as on a personal loan I THINK the interest stops but I could be totally wrong).

[Kitt3n]

You STILL have to repay the money! You don't get out of your bills! They just take out a small amount over X number of years so while it prevents legal action being taken against you etc. you still have to pay the money back in the end anyway (if there's interest such as on a personal loan I THINK the interest stops but I could be totally wrong).

no you dont hun

[nagromeyk]

You STILL have to repay the money! You don't get out of your bills! They just take out a small amount over X number of years so while it prevents legal action being taken against you etc

Agree with Kitten on this one sorry, you only have to repay if your income is OVER a certain amount per year (think its about $45,000)

[~Raven~]

She doesn't have any assets in her name so her DH is saying "why don't you just declare bankruptcy then it will go away".

The DH is saying she should declare bankruptcy? What about him? Sounds like a bit of a rotter to me. Tell her it he thinks it's not so bad he should declare bankruptcy himself!