Got an Answer?
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.
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.
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.