debt bankruptcy

Replies to This Discussion

Permalink Reply by Maria on August 26, 2009 at 17:04

Hi Nikki

Thank u so much for your help.

Maria

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Permalink Reply by Bandwidth on August 25, 2009 at 20:39

You are confused

I am confused in one post you say you have bought a house in another you say you have pre-approval ,yet the financial advisor says you have more expenses than earnings. I very much doubt an Australian Bank, knowing all the facts would lend under these conditions.

In my calculations you have 104,000 worth of debt yet in a posting to Jeff you mention 85000 and no mention of a house.

I can hear your stress but there are no magic answers to a situation like this and people are certainly not going to be able to help when there is confusing information.

As Nikki is suggesting you need to have a serious talk with someone authorised to give financial advise and listen to there advice

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Permalink Reply by Bandwidth on August 26, 2009 at 19:29

Thanks Maria

From what i read buying a house should not be high on your priority list, it will only create more stress. My advice to most home purchasers is that the first three years are the worst and I feel you are not in the position to go through that.

My thoughts are look at what you are spending and how much of that is needs and how much is wants. While it is not nice to be in a position such as you are, you are there and need to start working your way out of it.

More debt, as in a house will only add to the situation. At least you can move to a cheaper rental or even to a location with better employment.

Reading the other posts I agree, pay off tthe debt that will reduce your obligations the fastest and then get rid of the other ones.

Learn from the situation you are in and work your way out of it.

You are going to financial advisors and clearly documenting your position that is a great start.

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Permalink Reply by Maria on August 28, 2009 at 12:35

Hi Bandwidth

After reading my situation would u recommend that I should be filing bankcruptsy since I have 1 child and another on the way and have huge expenses ahead and on top have 100 k debt.

Do u have any contacts of Bankruptsy lawyers who doesnt charge heaps.

Can u pls let me know if we file bankruptsy we can not even get rental house ? Is it true ?

Thanks
Maria

Permalink Reply by Bandwidth on August 30, 2009 at 10:04

Hello Maria

I am not in a position to offer any specific advice as I am not a financial advisor so any further advice you will have to get from a licensed advisor. Sorry

Permalink Reply by Sophia on April 15, 2009 at 15:18

Hi Nikki so basically ur husband did apply for debt agreement but it was showing as a bankruptsy on the credit file , thats scary as even I was planning to apply for debt agreement but my husband is stopping me to do this. I am very confused I have more than $80000 debts including credit cards and personal loan and have a baby as well.

Wat would u suggest ? If I apply for debt agreement will that be a best option or just not to pay to the creditors and get unpaid defaults on ur credit file as applying for debt agreement will anyway give u that Bankcruptsy stamp on ur credit file.

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Permalink Reply by nikki on April 16, 2009 at 1:03

Hi Sophia
My advice is to make an appointment with a financial councillor. Take all your paperwork with you and ask them for unbiased advice as to what would be the best and safest way for you to go. $80000 is alot of debt and you need sound advice from a knowledgeable person.
Lifeline and other welfare organisations do financial counselling and you dont have to be a welfare recipient to get their asistance.
Good luck with it and be informed.
Let me know how you go :)

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Permalink Reply by Maria on August 5, 2009 at 10:12

Hi Nikki

I ahve posted my query under the name of Maria on the 12th of JUly and I havnt recieved any feedback. Would u be able to help me with this pls.

thanks
Maria

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Permalink Reply by Keith Musgrave on April 16, 2009 at 17:13

Hi Everyone,
I just thought I might add a little bit here.
My understanding of the credit reporting process goes something like this: Most overdue accounts that are left unsolved will be listed on your credit file as an "overdue account". Once they go past a certain point they become a "default". All overdue accounts and defaults will drop off your credit file after 5 years. Normally "bankruptcies and Part IX's" become bankruptcies and Part IX's because they are usually a much larger amount. Bankruptcies and Part IX's will drop off your credit file after 7 years.

Most companies who extend credit, wether it be for monthly account phones or store accounts and the like, simply do a credit reference check and if there is a default listed on the applicants file then they will not approve your application for whatever. They do not look at why you have a default or who it is with. They simply see on the front page of your credit file that you have an "outstanding account or a default or a bankruptcy, end of story, no credit!!
When you are making application for a substantial amount of money, home loan, car loan or the like, they will have a look at who the default is with and when it occured and, most importantly, if it is paid.
No finance company will extend credit to you if the defaults are still "unpaid". Unpaid accounts are viewed dimly, as they show that you have little respect for the credit provided.
There are exceptions to these rules, and they are called "non conforming lenders" who assess your credit history and will extend credit, even if you have unpaid defaults. The premium you pay is higher application and settlement costs and usually substantially higher interest rates. (Where standard rates for home lending are around the 5% mark, a non conforming lender might charge you 10%. If standard rates were 8% they might charge 13%)
In the mortgage market, telco defaults and the like are now usually overlooked up to about $500 as long as they are listed as paid and that you have a reasonable explanation why the default has occured. If the default is over about $1,000 or you are a bankrupt, then the lenders will still consider your application but with different terms. You will require 20% deposit for a home purchase and your "statement of position" (what you own verses what you owe) is strong, and your employment history is good, then you should still be able to get a home loan. Casual incomes will be considered if you have held the job for over 12 months. New jobs will be considered if you have been in the same industry for 2 years. Most lenders require that with new jobs, that you get a letter from your employer stating that you have satisfied the "probationary period", usually 3 - 6 months.
As a matter of interest, for those of you who are currently struggling with your finances, the absolute best thig to do is to contact your credit provider and discuss with them your situation. Many times they will simply make arrangement with you to reduce payments or they might waive or reduce the interest rate being charged. In these cases, the credit provider will not list a default or overdue account UNTIL you break the arrangement. I once had a Grace Bros account and due to me moving, I did not receive the most recent statement. I happened into a Grace Bros store and purchased clothes with cash. I then proceeded upstairs and paid $100 off my account. 1 week later I received a phone call to say that I had not met my minimum payment required and was requested to pay the account in full. As I explained I was unable to do that at the time, they agreed for me to pay $100 per month for the next 10 months. I got 8 months through the agreement and overlooked the payment. I received another phone call to say that I must pay the remaining amount in full within 7 days. It was only then that they listed the default on my credit file.
In most cases these days credit applications are assessed on the lenders credit policy. Outside the policy, no getty approval. However, if you can find a supportive shoulder to cry on and they believe in your situation and circumstances, they might help. (Not many of them around these days, because there used to be too many of them and they generally made poor credit decisions.)
I hope this helps and apologise for the long winded reply.
All the best
Keith

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Permalink Reply by arti sham on June 26, 2009 at 16:18

I have done a debt 9 agreement ,
I am about to accept a job offer with comminsure which is CBA,they about to do a probity check have disclosed to them that i have done the debt 9 agreement.I am worried whether they will declined the offer to me i am very worried

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Permalink Reply by nikki on June 26, 2009 at 20:38

You were honest and disclosed your information. Did it say anywhere on the application that Bankruptcy excluded you from applying? I don't know if it would preclude you from acceptance but you never can tell.
I sympathise with you and am curious to see if it does.
Good luck and don't lie awake worrying about it as worrying does'nt change anything.
Hang in there and good luck with the job application
Nikki

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Permalink Reply by JeffK on July 28, 2009 at 18:38

Good advice Nikki!

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