Tell me why declaring bankruptcy is bad

[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!

[Kitt3n]

sash, its $65k(ish) might vary by state. I helped a friend go through this, she was in nasty trouble and it was her only option, wasnt so bad in the end. It was like a fresh start for her - she is even now looking at buying a house, but lots of places wont touch her, the ones that will charge .5 to 1%higher interest.

But her hubby should look into how this can affect him too, my friend didnt have a partner and I dont knwo how it could affect their assests - even if its in his name they are still married so one would think the 50/50 rule might come into play?