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Ask Paul: I want to travel overseas then declare bankruptcy

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Q. I am 35 years old, single with no children and have about $21,000 in personal loans that have now been sold by the bank to a debt agency.

I was out of work for a few years and the debt got out of hand. I feel that due to earning only about $33,000 a year at the moment, going bankrupt would be my best option.

Do you think this would be my best choice? If not, what do you suggest?

I have about $8000 in super and have no savings.

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I plan to go overseas soon to visit family I haven't seen for many years and would like to see older family as they might die in the time period of bankruptcy. I would be applying for bankruptcy once I got back from the trip. - Paul

A. Crikey Paul, I really do have to say that I am not overly delighted to hear that you would spend a fair bit of money going overseas and then go bankrupt.

Going bankrupt is far from ideal.

What I would really like you to do is to phone the National Debt Helpline on 1800 007 007.

It is a confidential free service.

Have a chat with a professional debt counsellor and see whether there is a better way of doing this.

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Paul Clitheroe AM is a respected financial adviser and Money's chairman and chief commentator. He is chair of the Australian Government Financial Literacy Board, and author of several personal finance books. Got a money question? Ask Paul.
Comments
Chris
November 2, 2017 9.41am

You can afford an overseas trip but can't afford to pay your debts. How does that work ?

How about you "man up" first, work hard, pay back your creditors and take some responsibility, instead of taking the easy way out ? Plus, the feeling of personal pride and satisfaction you will get from travelling the hard road ? Priceless.

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