so I found out recently that an reasonably close acquaintance of ours has gone into bankruptcy. They have ditched nearly $1 million dollars in business debt. (He is in the same industry as us nd she is my hairdresser ...hence all the details ) But.... They have never owned a house, so they continue living in their waterfront rental house. She gets to keep her 2005 BMW because it was valued at less than $10,000. He had to sell his hot commodore, but "sold" it to his brother and is still driving it. They were "advised" to pay as much school fees as they could before declaring. They paid upfront for the next 2 years of private school so the kids know no difference. The same person told them to buy a heap of grocery cards. So they have the next 12 months grocery/grog and petrol sorted. Then I hear that they are allowed to earn around $60k EACH before they lose any to their creditors. She just thinks it is the best thing ever. Only 3 years and (in her words) the perfect stress free life making more $$$$ than they had before. They are planning a cruise for the summer school holidays. When did bankruptcy become so easy? I don't think bankrupts should be allowed to earn anywhere near $60k before paying creditors. How much should they earn you ask? Well I think probably the level of the aged pension would be a good guide. That is apparently what the govt see as a suitable amount to live on. She doesn't care at all that their credit rating has a bankruptcy on it. They have never any intention of buying a house.