WA Bankruptcy - Will It Affect My Husband?

[Hopeless]

I am very, very scared. I have a debt of about $100,000.00. I had a failed business. I am married but everything is in my husband's name as I have not had good credit for quite a while now. I am desperately trying to make enough money to pay my debt but I am getting nowhere.

It's a massive amount of money and it's all business related. I have been advised to go bankrupt. My fear is that they will go after my husband. He has a house ( unfinished ) but livable and 2 cars but they are not worth much, one is worth $5000, the other maybe $10,000. He has no other assets and, of course, I have none.

I am just so petrified to go through the process because if my husband gets caught in this, he will leave me. I really don't know what to do. If I don't go bankrupt, I will paying this debt over 20 or 30 years with low payments as possible. I make about $500 a week. I have suffered Depression and Anxiety which on some days is debilitating so I don't work full time.

We have a child together. I'm so worried and just want this to be over. My husband and I are already going through major stress as he is very unhappy with me. Is it possible for me to go into bankruptcy without it affecting him in any way?

Please please help! I should have sorted this out a long time ago.

 

[Sophea]

Hi Hopeless,

I'm sorry to hear about your situation. Generally speaking, if you go bankrupt, your trustee in bankruptcy can only come after assets that you own. That is assets you own by yourself individually and those that you may own jointly with your husband. Therefore, if you jointly own the house with your husband then the trustee is entitled to your half share of the property, but he would have the option to buy out your half share from the trustee etc.

It would only be in the case that you have disposed of your assets within 3 years ago in order to defeat your creditors, that the trustee may have grounds to claw back assets that were transferred from you to your husband as well.

As a matter of course, the following assets would vest in your trustee - meaning the trustee has power to deal with the asset(s), take physical possession of and control of the assets, including the right to sell them.

• houses, apartments, land, farms and business premises (including leases)
• motor vehicles (other than exempt ones)
• shares and other investments (including shares held in your employer’s business)
• tax refunds for income earned before you became bankrupt
• proceeds of a deceased estate where the person dies before or during your bankruptcy
• lottery winnings and other competition prizes.

Here is an article which talks about some other consequences of bankruptcy: Bankruptcy - What Does It Mean For You? - Legal Blog - LawAnswers.com.au