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Declaring Bankruptcy

Has anyone ever had to do this?
How did it impact your future?
Will I forever have to tell people that I have previously declared bankruptcy and never be able to obtain credit again?

I am in about $40,000 worth of debt that I have no means to repay at all.

Before the trolls and nasty's come out, Yes I will seek proper financial advice but today is a public holiday and this is some thing that is worrying me right now.


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Answers (6)

There are ways! Get some free financial advice (many charities offer this, they may be able to arange payment plans on your behalf). Get a second or third job. It's really not a huge amount! Things may be tight for a while but declaring bankruptcy is a bloody copout!

Depends. I was forced to declare bankruptcy after my marriage broke down. I exhausted every possibility beforehand. In most ways it has no impact on me at all, I own a vehicle under the threshold and I fill in some paperwork once a year with financial details. Ways it does impact are that I will most likely never be able to own a home again. It's next to impossible to get a rental property. And I couldn't get a new phone on a contract. I also wanted to change my name due to hiding from my violent ex husband, but as a bankrupt I was advised that they may decline the application. It really depends on your individual circumstances.

 Just a quick question, why does it make it harder to get a rental property? I was under the assumption that real estate agents are not supposed to have full access to credit files, just information that would be available to normal public, is bankruptcy public info?
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OP That poster may not be in Australia. In Aus real estates don't check your credit history.
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 OP of this comment- I'm in WA, you have to disclose on applications if you are an undischarged bankrupt. At least through the agencies anyway. Every joint application where I disclosed was turned down. When my partner applied on his own there were no problems.
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 Me and partner went bankrupt, we never had tell realestates that we were. We never had problems getting rentals we rented 3 different houses while bankrupt
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It's not as simple as deciding to go bankrupt. You may still have to pay some of the debt. For that amount of money you would be better off consolidating the debt and pay it off that way.

 Consolidation usually means high fees.... more debt & a shitload of interest.
You only have to pay ato & sper. Everything else you can file for.

helpful (0) 
 Is it worth not being able to get a loan again though?
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In the whole scheme of things, $40,000 isn't a lot, not enough to ruin all future prospects and declare bankruptcy. Speak to a financial planner and see what other options you have. I would exhaust all possibilities before even considering it, especially for such a small amount (small I mean it's not in the 100s thousands) good luck.

Answered by OP

Thanks everyone, since posting this I have received proper financial advise.