Jane is 35 years old and has been separated for the last six months. She has three children under 10 years of age. Jane has no formal work skills or training, and has been ‘a stay at home’ mum for the entirety of her marriage. Prior to her separation Jane’s husband worked in the home building industry and could earn up to $2500 per week, however there were some weeks where there was no income and Jane was never sure that there would be enough money to run the house and pay the bills. Prior to the separation, Jane and her husband were in the process of renovating their home. Jane and her husband had a mortgage debt of $770,000. The house has remained unfinished but upon completion would be worth approximately $900,000.

The financial situation produced constant tension in the family and despite her many attempts to find a solution it always ended up with Jane’s husband blaming her for all their problems. Jane’s mental health deteriorated and she has been diagnosed and receiving treatment for depression. The couple had two trial separations, and Jane was unsuccessful in influencing her husband to attend counselling to sort through their relationship difficulties. Jane’s husband left the family and their home.

Since the separation, Jane has received Centrelink benefits, and has attempted to look for work. This has proved difficult as she has been unsuccessful in finding day care for her two year old child. Jane’s husband does not pay any child support, as his declaration shows that in the last year he has only earned $24,000. Jane has been attempting to exist on Centrelink benefits alone and has been unable to meet all of the bills.

As most of the debts are in joint names and because Jane has continued to live in the family home, she was worried that the bank would for-close on the mortgage and she would be locked out of the house and subsequently lose all the household possessions.

Jane has received a ‘Statement of Claim’ from the bank and had 21 days to file a defence. At the time of seeing a Financial Counsellor at Wesley Mission, it was noted that Jane was in a very depressed and tearful state. The children have had no contact with their father since he left the family home. The children do not understand why they have not seen their father, they have been acting out and their behaviour has been difficult to manage. As a consequence, Jane has had additional stress and worry. Jane has no forwarding address for her husband; although she has been told that he is now residing with another woman. Jane feels angry that her husband has left her and their children in such a difficult situation.

Jane has decided to move interstate to live with her parents so that she will have emotional support and assistance with the care of her children. Jane is also aware that the move will be difficult for her children who will need to leave their school and friends. Jane wants to be free from financial worry so she can start again. She is planning to divorce her husband as soon as the financial situation is solved. Jane has decided that going bankrupt is the only solution and has now lodged the appropriate paperwork.

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