Stopping a debt spiral to save the family home

Unable to service growing debts and a mortgage, he relied on multiple credit cards to cover family expenses.


Personal Finance


Brett was a contractor for a mining services company. Over a period of time he had begun living beyond his means, accumulating $150,000 in credit card debt. He did not have an Emergency Fund, and the mine that Brett was working with suddenly terminated all contract workers.

Brett then contacted Rapsey Griffiths to review his financial situation.


Brett was unable to service his growing debts and his mortgage on the family home. While out of work, he relied on multiple credit cards to cover mortgage repayments and day to day living and family expenses. On securing a new job, it became clear that he would never be able to pay off his credit card debt, and he feared the family would be left homeless.


Rapsey Griffiths determined that the best option for Brett was to file a debtor petition for bankruptcy.

  • Brett owned a 50% share in his home with his wife, providing $25,000 in equity.
  • This share was considered an asset in his bankrupt estate.
  • Brett’s wife was consulted and purchased his share in the property for $25,000.
  • The trustee transferred all right and title of the property to Brett’s wife, who became sole owner.


While bankruptcy seemed like a drastic step, it provided Brett with a way out of his debt crisis and enabled him to continue living with his family in their home.

Brett has now managed to find a job and he has surplus income to live his life. He is actually saving money during bankruptcy and has made a fresh financial start.

People often don’t realise the options that are available to them. With the right advice, even the worst possible outcomes can be avoided or mitigated.Brett