And the Judge’s Gavel Fell



I have a court judgment against me for a $10,000 credit card debt, along with other credit card and personal loan debts that have accumulated to over $20,000. Over the last three years I have recovered from addiction and mental health issues, as well as homelessness. Through hard work I have finally landed myself a stable job in the industry I studied at uni for, earning $96,500 a year. Still I cannot get ahead. I would like to go bankrupt to wipe the slate clean and start again. Is this a good idea?


Scott's Answer

Hi Natalie

Rising strong!

Congratulations on your continued recovery. That shows courage and perseverance. You’re a fighter.

Yet bankruptcy, in my opinion, is not an option ‒ you’re earning too much dough!

So what should you do instead?

First things first, get a copy of your credit file and see what’s on it.

Then, you have a couple of options:

You could contact your lenders (specifically, their hardship departments) and disclose that you took out the debt when you were suffering from addiction, mental health issues and homelessness. If you can provide supporting documentation from doctors and case study workers, you may be able to have the debt waived on hardship and compassionate grounds (and there may also be ways to have the $10,000 court judgement waived as well).

Or you could choose to negotiate a realistic repayment schedule. On your income you’d pay if off inside of a year.

You Got This!