Have you done it?
, Dec 15 2012 07:57 PM
28 replies to this topic
Posted 15 December 2012 - 07:57 PM
Okay so I'm looking for advice (obviously) about our current situation.
My partner and I have both been married before and both walked away from the marriages with debts. These debts have been sinking us for the last 12 months and it hasn't been getting any easier.
Our options recently have been pointing towards each of us going bankrupt.
My partner, luckily found out he could get his overseas super released and we will be able to pay off his debts in NZ with the balance he has received.
My debt on the other hand still looks like ill have to go bankrupt in order to get us out of the financial hole.
Has anyone else gone bankrupt? Even the lady at debt assist said bankruptcy is my best option. I'm really struggling with this.
I guess I'm just wondering what experiences other people have had with bankruptcy. Obviously it's not at all ideal and I can forget about getting loans in the future (not that that is an option for me anyway as my ex husband still won't take me off his home loan even though the property is transferred to him)
Just feeling a bit lost and most of all don't want to make the wrong move for our/ my financial future.
Posted 15 December 2012 - 08:13 PM
My Mum went bankrupt and it did free her.
Posted 15 December 2012 - 08:14 PM
I have just finished my bankruptcy. Basically no credit for 3 years but you get used to that, plus restrictions on travel. Ask away.
Posted 15 December 2012 - 10:17 PM
My partner is nz and we would like to go there at some point. Can I be stopped from going?
How did it change things for you? Was it hard?
Posted 15 December 2012 - 10:25 PM
You have to be discharged for usually around 7 years before you can get some types of insurance again. In my job, I've turned down many business owners due to being bankrupt in recent years.
Posted 16 December 2012 - 12:35 AM
What kind of insurance?
Posted 16 December 2012 - 12:08 PM
be careful if you have a loan with ex hubby as i would say that it would also affect it. i would check with the bank that the loan is held at
Posted 16 December 2012 - 12:45 PM
I reckon if you casually mention to your x husband about being on his home loan and how you going bankrupt will affect that he will take you off quick smart.....!
Posted 16 December 2012 - 12:56 PM
My ex and I had loans together and while together he went bankrupt. I personally really didn't want too, but 3 months later I did. When I look back now, it was the only way out.
After three years, I had saved enough money for half a car and I got a loan for the rest. I paid that off in 2 years. In my 6th year from filling paper work I got a loan for a mortgage, and didn't have a problem getting it. I was very up front about the bankruptcy and had letters from itsa to show when my 7 years was up. Have since this year 7.5 years out and got a loan for car (brand new) without a problem.
I've never had a problem with getting insurance, in the first three years if you wish to travel overseas you need to write a letter to itsa asking to leave the country and they will need to know all details.
I don't have a credit card and nor do I wish to have one. If I want something I save for it. I layby a lot of things and really to this day I hate oweing money.
It's not something to do light hearted, have a good think about the next 7 years of your life.
Posted 16 December 2012 - 03:23 PM
We had a business fail and had to go bankrupt. Basically you have to surrender your passport and have written permission from it's a to leave the country. They can refuse permission if they feel you are a flight risk.
You might have trouble changing mobile providers even if you have a perfect record at your current one. Some of the cheap insurance providers like youi won't insure current bankrupts either.
To be honest I haven't missed my credit card, and we never bought things like furniture if we didn't have the cash anyway.
At the time going bankrupt was our only choice and the relief after signing those papers was immense. I felt really bad for the people we owed money to though. You do know that it's a will wont a complete list of debts and assets from you? So I would start compiling them now. They will demand a certain percentage of your income once you earn over a certain limit as well. Also they can take any extra super payments you have made (not your compulsory employer paid ones). Do you ugly own your car or have a decent equity in it? If it worth over $7000 I think and you have that much equity in it,they can take it and sell it and use anything over that $7000 to help settle your debts. You get that first $7000 back.
Posted 16 December 2012 - 06:44 PM
I have a car that is supposedly worth 9k but the trustee doesn't think it's actually worth that considering there is damage to three panels. Other than that I don't really have anything.
Posted 18 December 2012 - 02:45 PM
I went bankrupt 8 years ago, after XH walked away and left me with all debt (I was very young), I had a car repossessed and sold for nearly nothing before this and really struggled to live and pay off the remaining debt, as well as a large loan we had from my family friend for our wedding and consolidation of debts. I couldn't deal with this large loan and the remaining money for the car loan, so I filed for bankruptcy.
During this time I got a payout for a car accident I had, so paid off the family friend ($25K) and brought a new car. I've only this year applied for credit and got a new car loan - my loan is a lot higher interest and fees because of my past credit history, so I pay higher repayments
Hopefully after this I will have a good credit rating again, although I'm very hesitant to get into debt again and prefer to save up for things I want. I will never own a credit card! I am sad to realise that I will probably never own my own home as I'm now a single mum at 32 years of age, and just lost my job.
But hey, it's not the end of the world.... And who knows, I might win the lotto tonight!
Posted 18 December 2012 - 02:49 PM
Give ITSA a call - they are the bankruptsy administrators.
I do know though that if you have ATO debts, these are no longer wiped, however they do no longer charge interest on the amounts. You are however still required to pay the principal back.
Posted 18 December 2012 - 02:52 PM
My DH is bankrupt. Following on from his hit and run accident 3yrs ago, he is unable to do the job he was in and resigned to study.
We were struggling the whole time going further into the hole instead of managing to dig ourselves out! So, we decided to proceed with the bankruptcy.
As PP said, you need to write to ITSA for permission to leave the country but we went OS recently with no issues.
Posted 18 December 2012 - 03:05 PM
I went bankrupt at the end of 2004 after just not earning enough to cover my debts. It was the best decision I ever made when it came to easing financial stress. I used to work in the insolvency industry and I knew that it is never as dire as people seem to think. Unless you are a company director, lawyer or real estate agent, it can be a relatively easy way to sort yourself out.
TBH I haven't been brave enough to check my credit record - it has been 7 years now so technically it should be wiped and I can borrow again. I haven't missed having credit and paying cash makes you honest if you know what I mean. I have been very strict since on paying my bills so here's hoping I'm squeaky clean again.
(I even managed to get a small mortgage with a bad rating, although I did have a substantial amount of cash to pay into the house and the repayments were 1/3 of the rent I was paying)
Posted 19 December 2012 - 08:41 AM
Freakypet... My partner and I have struggled with our ex marital debts for the last two years. As I said his is now wiped thank goodness but my debt is still badly effecting our family and we have basically just had to stop paying it while I get all my papers filed for bankruptcy.
Just one example of the payments we were making was $200 per week to an NZ bank which did not bring the loan down at all in the 18 months we were struggling with it!
I have credit cards and old bills from the ex husband which we just couldn't keep up on the repayments of.
It's not an easy decision to make. I'm still sort of struggling with it tbh. But I have to look at the bigger picture, me going bankrupt really truly is in the best interest of our family. I can't just look at it as me, this is effecting my partner and our three kids.
This year I couldn't even afford new school jumpers for my son so he had to wear last years. Which might not sound so bad to others but they are all too short in the arms for him this year.
My family and friends have been very good to us and I havent had to buy any casual clothes for DS due to my aunty having boys a size ahead of him and her (thankfully) handing down some amazing clothes for him. My middle DD has had minimal new clothes, I've maybe spent $50 on $3 t shirts and clearance rack stuff. Couldn't even replace a couple of cheap jumpers she lost in winter.
My baby DD has had all clothes given to her. Some new some second hand but I haven't spent a cent.
I really loathe to think how we would have clothed our kids without the support network we have.
I know I've focused just on clothes there but it was just to demonstrate how hard it has been in one area. We struggled just to replace work pants for my partner earlier in the year ( only $60 but we had to save over the month to do it because we didn't even have that spare.)
I never thought it would come to this as we kept the attitude of "she'll be right" I guess and kept hoping it would sort itself out. Our tax returns were meant to pay some of our debts but it didn't happen because we had to use it to pay every day expenses like rent, food and electricity when my partners boss decided to close the restaurant for three weeks even though none of the staff had enough holiday pay to get through that time.
Posted 19 December 2012 - 09:09 AM
My ex went bankrupt and it put an end to a very stressful time. He traded insolvent for about 6 months.
Other than difficulties getting loans and leaving the country, it didn't penalise him at all.
He basically spent way too much over the years, couldn't pay it back (banks gave him ridiculously high loans) and he declared bankruptcy and walked away happy.
He only owed money to the bank and the tax office and didn't feel at all bad about walking away from that debt, it gave him a new lease on life.
For some people bankruptcy is not the easy option, for him it definitely was.
Posted 19 December 2012 - 09:34 AM
OP, if you're at the point where you're struggling to clothe your children, then it's time. Bankruptcy is a safety net so that entrepreneurship is widespread, people take loans, and the economy prospers - if there wasn't this safety net, people would be far more reluctant to do the above. Case point is India, where intergenerational debts and a lack of bankruptcy options has stifled the economy to the point where very few hold so very much of the overall wealth.
I know there's a stigma around bankruptcy, but I doubt anyone who'll be judging you will have walked a mile in your shoes.
Posted 19 December 2012 - 10:15 AM
I wouldn't even worry about the stigma, no one needs to know.
Posted 19 December 2012 - 10:47 AM
Just wanted to say thank you for the posts here. It actually is helping me see its not the end of the world and I'm not a total failure.
I had mentioned it to mum last week and she has a way of making me question myself (not in a good way) so I am glad I posted here.
Posted 27 December 2012 - 03:12 PM
Hi, can someone please help me out with how to start the process??? It's something I've been thinking about for a while.
Posted 28 December 2012 - 08:32 AM
I called debit assist to go over my options and the lady I spoke to is doing all the paperwork for me.
Posted 28 December 2012 - 08:55 AM
Is that a Part 9 agreement company???
Posted 28 December 2012 - 11:03 PM
If being a part 9 company means they can file bankruptcy or make debt agreements on your behalf... Then yes they are.
Posted 07 January 2013 - 09:03 PM
But what happens in terms of utilities companies, renting houses etc?
I have heard (not sure if correct) that if you are bankrupt and apply to change to cheaper elec/gas providers they can request a bond before taking you on....
Is this correct and does anyone know how much it would be approx? Also can you inc utilities in your bankruptcy application?
What cant you inc?
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