Hi, We are struggling financially with credit cards & other debts. We can manage comfortably with Mortgage repayments it's all the other debts which are crippling us. I have seen when searching online that you can keep your home & car if you declare bankruptcy? Is this possible?

NO!

in bankruptcy you lose everything except for personal effects, your tools of trade and a car up to the value of about $7600. Everything else gets handed to the trustee to handle. You also have to make income contributions of 50% of your income (after tax) of approximately $55,000.
It last for 3 years. It is also on your record for a long time, and makes potential lenders very nervous.
I have seen people use it as a get out of jail option as they perceive it as having no consequences, but it does have some lasting consequences.
And whatever you do DONT sign up to one of of those late night debt consolidation businesses!!!! What they sign you up to (Part IX or Part X debt agreements) are even worse than bankruptcy. Those firms are the lowest form of legalised predator who prey on the weak and desperate people who can least afford to get expert advice.
most good insolvency firms offer some level of support and consultation to individuals who are in debt and cant seem to break out. Go to AT LEAST TWO!!! get some advice about your options and SIGN NOTHING UNTIL YOU KNOW WHAT YOU ARE SIGNING.
Insolvency and bankruptcy practitioners are for the most part there to help. They get no joy from sending people down the drain, and wherever possible they will try to help you get out the situation you are in.

moral of the story is get advice, make it as good as you can make it and act on it. But dont sign up to something you dont understand.

good luck

Brendan

Hello

I may not be the right person to answer that question, however, have you looked into consolidating your debts and refinancing your home loan to a lower rate? (No I am NOT one of those dodgy late night debt consolidation places that Brendan above has mentioned, I'm a Mortgage Professional, we have strict responsible lending guidelines that we must adhere to).

I've helped many customers in similar situations and sometimes all it takes is some restructuring of your debts and re-assessing your monthly budget. Depending on your circumstances, it's possible to save a significant amount of money every month.

If you have defaults on your credit file due to not being able to meet your repayments of debts and credit cards, there are specialist lenders who may still consider you.

Let me know if I can help in any way, no cost to you and no obligation. I'm based in VIC but can chat with you via ph/skype/email.

Alternatively, you could speak to a Free Financial Counsellor for advice.

Kind regards
Caroline Pollard
cp@baysidefinancesolutions.com.au
0418 109 552

Hi J,
Im not a financial adviser or counsellor but this is my thoughts on it.
As Brendan and Caroline have said Bankruptcy should be a last resort and very rarely a good option. Entering into a part 9 is probably worse.
Make an appointment with a free financial counsellor and if you can make sacrifices and make it work, great! If you can’t, sell up and start again. A bankruptcy will affect you for between 9 and 12 years, making anything from renting a house to holding a credit card extremely difficult if not impossible.
Sorry to offer the bad news but you must act quickly and decisively
Best of luck with it
Regards
Scott

Hi J,
I received your message however I am unable to reply directly at the moment.
Sounds like you have done your research on refi/debt consolidation options. Unfortunately based on what you’ve told me, I would be unable to assist.
The best advice I can give you is to call the National Debt Helpline 1800 007 007, this is a free service and you will be able to speak to a free financial counsellor who can explain all of your options and may be able to assist you without you having to file bankruptcy or enter into a debt agreement.
I looked up the website you mentioned and I have no doubt they would charge you fees for advice and for managing your debt, they would most likely enter you into a ‘Part IX’ debt agreement (which is an act of bankruptcy).
With a debt agreement, your creditors can still apply to the court to make you bankrupt and you will also be listed on the public register for a very long time, you'll have trouble getting credit in the future and depending on what you do for living, it may also affect your employment and will affect your income.
As Brendan mentioned, If you become bankrupt, most of your assets (including your house) will be sold to help pay your debts. Unfortunately there is no way around this. Look up debt agreements and bankruptcy on AFSA or ASIC's Moneysmart websites.
I hope this info helps you out a little and that everything works out ok for you.
Kind regards
Caroline

Hi guys. reading between the lines I can only presume you are in between a rock and a hard place right now JJJ. I hope it works out for you and your family, please make sure you get some advice from people who know what they are doing. If I had to limit myself to one piece of advice it would be stay away from those predators who advertise solutions and stitch you up to Part IX or Part X arrangements which end up costing you more than bankruptcy would.

good luck
BC