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  • FIRST POST
    • jonnybeegood
    • By jonnybeegood 20th Sep 16, 12:48 PM
    • 20Posts
    • 14Thanks
    jonnybeegood
    Would bankruptcy be allowed?
    • #1
    • 20th Sep 16, 12:48 PM
    Would bankruptcy be allowed? 20th Sep 16 at 12:48 PM
    My cousin claims that he is applying to go bankrupt. He owes 50K but earns over 60K and is able to meet minimum payments. He also has about 90K of equity in his house. Would bankkruptcy be granted? He seems to think that it will be an easy route of of debt but surely they will not allow this?

    I am slogging my guts out to pay back my 40K debt!
Page 1
    • luvsmoothies
    • By luvsmoothies 20th Sep 16, 1:29 PM
    • 463 Posts
    • 300 Thanks
    luvsmoothies
    • #2
    • 20th Sep 16, 1:29 PM
    • #2
    • 20th Sep 16, 1:29 PM
    Your cousin would be mad to file for bankruptcy. The Official Receiver would almost certainly force sale of his house to release equity for creditor repayment. Additionally, if this does not clear his liabilities, and given his high salary an order would probably be given forcing a monthly payment from his salary. I believe this could be for three years but could be wrong. Bankruptcy is only a best option if the debtor doesn't have much to lose in the way of assets. To be honest on his salary, he should be able to sort something out.
    • Muttipops
    • By Muttipops 20th Sep 16, 2:02 PM
    • 245 Posts
    • 227 Thanks
    Muttipops
    • #3
    • 20th Sep 16, 2:02 PM
    • #3
    • 20th Sep 16, 2:02 PM
    He can apply to go bankrupt all he likes, but he will be in a for a very rude awakening when he comes across the Official Receiver.
    I do not think he would be allowed to be declared bankrupt, as clearly he CAN meet his debts. If he tries it on, I hope they give his application fee to the homeless, once they have finished laughing.


    Salary surplus, house, car, ritzy lifestyle all gone, no more credit for years etc, etc.


    Is his name Mr M Oron? Sorry to be rude, but really, he needs to do his research a little more; I would suggest a Christmas present to him of a money management book and in the meantime an email with some links to the Insolvency Service and MSE forum.




    Just thought of a kinder possibility; maybe he is in debt for a lot more than he admits to and is just telling half the truth to you in order not to loose face; in that case, I would have sympathy with him.
    Last edited by Muttipops; 20-09-2016 at 2:42 PM. Reason: Removed a line that was a bit too blunt!
  • National Debtline
    • #4
    • 20th Sep 16, 2:13 PM
    • #4
    • 20th Sep 16, 2:13 PM
    Hi

    If your cousin’s bankruptcy application accurately reflects his circumstances his application should be declined by the Adjudicator. Your cousin isn’t insolvent as he can afford his debt payments as they fall due, and has assets with a higher value than his liabilities.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Muttipops
    • By Muttipops 20th Sep 16, 2:45 PM
    • 245 Posts
    • 227 Thanks
    Muttipops
    • #5
    • 20th Sep 16, 2:45 PM
    • #5
    • 20th Sep 16, 2:45 PM
    Hi

    If your cousinís bankruptcy application accurately reflects his circumstances his application should be declined by the Adjudicator. Your cousin isnít insolvent as he can afford his debt payments as they fall due, and has assets with a higher value than his liabilities.

    James
    @natdebtline
    Originally posted by National Debtline



    LOL, James, I said broadly the same as you, just that you said it in a lot more professional manner; yours reads better, mine reads "Johnny Public".
  • National Debtline
    • #6
    • 20th Sep 16, 3:42 PM
    • #6
    • 20th Sep 16, 3:42 PM
    LOL, James, I said broadly the same as you, just that you said it in a lot more professional manner; yours reads better, mine reads "Johnny Public".
    Originally posted by Muttipops
    It's good to have a variety of different styles and input on here to cover all bases Muttipops.

    James
    @natdebtline
    Last edited by National Debtline; 20-09-2016 at 3:47 PM.
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • jonnybeegood
    • By jonnybeegood 22nd Sep 16, 8:00 AM
    • 20 Posts
    • 14 Thanks
    jonnybeegood
    • #7
    • 22nd Sep 16, 8:00 AM
    • #7
    • 22nd Sep 16, 8:00 AM
    I have shown his these posts! I think he is starting to realise that he actually needs to pay this debt off!!
    • Muttipops
    • By Muttipops 22nd Sep 16, 10:09 AM
    • 245 Posts
    • 227 Thanks
    Muttipops
    • #8
    • 22nd Sep 16, 10:09 AM
    • #8
    • 22nd Sep 16, 10:09 AM
    I have shown his these posts! I think he is starting to realise that he actually needs to pay this debt off!!
    Originally posted by jonnybeegood

    Good for you, johnny.

    I am usually a Mrs Fluffy, but knowing that he was not the one reading it made me a lot blunter than usual, but I am glad you showed it to him, a tonne of bricks is sometimes needed to deflate the ego and bring reality into play; I shall have to remember that for the future.
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