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Just that.....what does it involve?
We rent, and currently have almost $30k in personal debt, basically refinancing loans, and a credit card.
We struggle BIG time. I am forever fobbing off the banks calls. Our personal loan is the biggest bane ever.....and it's for nothing. Began as a car, then another car, then refinancing, then refinancing, etc.....
You might want to look into a debt agreement, before bankruptcy, especially for what would be considered a small amount. Bankruptcy is a black mark for a long time and can make getting any kind of credit very difficult in future.
I know, it does seem like a small amount but gosh it feels huge!!! It wouldn't be bad if we had a nice newish car in the drive or something but it's for nothing really!!! And as far as a black mark goes......doesn't it only last for 5 years?? We are screwed with our debts for at least that already so I don't see the difference really.
Do you mean a debt agreement with the credit holders?
Look up the ASIC website wrt debt agreements.
As a current bankrupt i agree with Jennifer13, try all other options first. You will be an undischarged bankrupt for 3 years and one day from lodgement. During this time you will have no personal credit, and may find getting a mobile phone under contract difficult, and even some of the cheaper insurers wont insure you. If your loan is secured, the provider is legally entitled to take it and sell it to recoup costs. You will be allocated a trustee, and if you have a passport, it has to be forfeited and you have to get permission to leave the country. You can't sneak out, you are put on a watch list. Your name will be permanantly placed on a bankruptcy register that is publicly available. After discharge you can't be knocked back for credit on the bankruptcy alone but you may have to provide a lot more proof that you can service a loan. Also you have to report income yearly and make repayments if you earn over a certain amount.
Please please please seek independent financial advice before going down this route. I had no choice as our business failed and we owed hundreds of thousands