[Debi]

Hi

What is the process if I decide to self lodge the forms? Is it simple or should I use a consultant?

Thanks

[PrincessPeach]

As far as I was aware it is relatively simple, just send the forms off to ITSA, they will then assign a case manager to you & any questions you have are to be directed through them.

Be 100% sure you have included all of your debts, including credit cards & the ATO. Although be aware that any debts with the ATO will not be wiped & you will still be required to pay these back, they will simply be put in a separate accoutn & not accrue interest.

[Sassy Dingo]

As far as I was aware it is relatively simple, just send the forms off to ITSA, they will then assign a case manager to you & any questions you have are to be directed through them.

Be 100% sure you have included all of your debts, including credit cards & the ATO. Although be aware that any debts with the ATO will not be wiped & you will still be required to pay these back, they will simply be put in a separate accoutn & not accrue interest.

That's incorrect. ATO personal/business debts get wiped after the period of bankruptcy, however HECS does not, which may be what you're thinking of.

[Debi]

I don't have tax or hecs debt

[Funnington]

I know it's a decision not taken lightly, but are you 100% certain there is no other way out of your current situation?

I've seen friends head down this path, I quietly suspect they regret now. It's affected them for future home loans (for only a 7 year period though I think). They're in a better situation and paying more in rent than they would if they were paying off a home.

I also believe if you earn over a certain amount, you will pay back a certain percentage each pay towards your debt.

I'm not going to ask how much debt we're talking about, I understand that's personal. But, really look into other options first.

This post has been edited by Funnington: 15/01/2013, 06:41 PM

[Sassy Dingo]

Your name only shows up on a credit check for 7 years, however your name is PERMANENTLY listed on the National Personal Insolvency Index - which anyone can access for a fee. It isn't the free ride people think it is.

[Debi]

I don't earn over the threshold and over the past 5 years I've explored and tried every other avenue. My dh is now on disability pension and I'm at that point that if I did this years ago when he got ill I'd be over the 3 years by now!

[Funnington]

My dh is now on disability pension

That's sad Surely there's some type of organisation that can act on someone's behalf and negotiate with creditors. It seems really unfair that you have limited income and are staring down the barrel of bankruptcy.

You're not losing your house are you OP?

This post has been edited by Funnington: 15/01/2013, 07:49 PM

[Debi]

No. Renting now. Sold house when he first got sick.

[naturalgoodness]

Debi - have you seen a Financial Counsellor? The service they offer is free and all avenues/options can be investigated.

Funnington - sometimes bankruptcy is the best option, its not always as easy as having someone negotiate/talk with creditors for someone. The negotiation made with a creditor does not always change a situation enough, and this person is looking at an issue that is not short term - most negotiations and hardship arrangements with creditors are based on the issue being short term not permanent.

I am a Financial Counsellor, bankruptcy is an option that is presented to clients when the situation may be appropriate, however it is usually just one of the options provided with the pros and cons carefully gone through. It can be a great relief for some people who have thought it through and made an informed decision.

ETA - you should not have to pay someone to assist you with completing bankruptcy paperwork. A Financial Counsellor may be able to go through it with you and ITSA has well trained staff that can assist you. Also, you do not have to include all debts in a bankruptcy - eg if you have a secured car loan you can opt not to include this debt and continue to pay it so that you can keep the car (there are calculations/rules around vehicles).

This post has been edited by naturalgoodness: 15/01/2013, 08:19 PM