Looking to get some expert advice here. Sorry if I am posting in wrong category. I already searched regarding this but could not find any exact situation as I am in (or going to be in)
So here is the situation:
I am currently on EP (since past three years).
Due to personal emergencies (Father's sickness and birth of child), I had to take some loans from banks here and use my credit cards. Untill last month I was able to pay more than the minimum required sum but in last month I have missed it as my expenses kept rolling over and savings became tinier. I have a total debt of 10-times my monthly salary (nearly 70K+ debt in total) to 3 different banks. I am worried that soon I will be in a situation where the Banks will start chasing me.. As I have to pay nearly 30% of the salary as rent, and then I have expenses for newborn, travel, food, electricity and others... at most I can manage with is about 20-25% of the salary in repaying the amounts, but as the amounts are huge I dont think this much would be enough for repaying the minimum every month.. and also repaying the minimum will lead me no where as the interest will keep on adding.
I have no other source of income (cannot get any other payment on EP) and my wife also doesn't work, however she may be able to get an LOC and raise some money but that is a long shot and with the newborn at home it is not something that I want her to do.
I am very much worried that if I go into such a situation where I have to file for personal Bankruptcy will it affect my EP renewal, or will it affect my job? I have read on numerous websites and blog that it should not affect job (for locals) as the court (and the creditors) would like me to remain productive so as to recover money from me, but I am not sure how does it work for foreigners.. please note that I am not try to evade the amounts I have to pay, I am just not in a situation to clear off all at once ..
Also, I read about CCS (credit counseling services) and other debt management agencies, but I am not sure how much can I rely on them.
1. If I land in a situation where I am not able to keep up with the repayments, is it best option to file for personal bankruptcy?
2. Will bankruptcy affect my Employment pass (current valid for next half year) and renewals after that? While its obviously too ironic that if I am not allowed EP then whatever I could pay back that also would not come.
3. How many weeks/months it takes to apply and get the bankruptcy status?
4. In a situation if I dont apply for personal bankruptcy but any bank files a case on me (I will still go to bankruptcy status) - but how long do the banks wait before taking a legal action? Somewhere I read it is 90 days of non-payment, is it correct?
Sorry that it is such a big question, but I hope to get some advice from here, also hope that it can help someone like me in the future.
I have heard/read about some other such people who did a runner to their home country but I do not want to do anything like that, my best intention is to repay but I just dont have enough dough as of now...