Bankruptcy... Is it to easy?

repoamuse

I have refrained from asking this question on the bankruptcy board as it's maybe a little too sensative.

Does anybody feel, as I do, that the bankruptcy system in this country, has too many loopholes and makes it too easy for a large section of society to 'wipe debt'.

Could this be a barrier to risk-taking and future investment? Could it deepen coming recession?

I know personally 2 couples that have gone 'bang', kept their cars, homes and jobs, repayed nothing, and been able to keep the consumer junk and big tv's that got them in the position in the first place.

geoffky

i think its a essentail lifeline for people.just think of all the pressure put on people to follow the other sheep and go out and get credit .everywhere you looked there was pressure to go out and spend beyond your limits.so its no wonder so many people fell for it and its no wonder so many are going bankrupt.....good luck to them at least they wll be able to get a good night sleep once they realize they have fell for the biggest con trick in history...

chris_spackman

Compare the above post to 2 people i know who are self employed in the service industry. They have both had to go down that road as they have no choice. Customers wouldn't pay and local suppliers put their prices up.

What with all the bills coming in they couldn't keep going on. They both did their best to stay away from it but know they have lost their home, one had his wife walk out on him leaving him with a 5 year old boy. With threats from his local council he had to do something

One ran a showroom and had to let 5 people go which was very hard for him. When i spoke to him the day before he did it he was trying to work out what to say and how to say it and he did have a lump in his throat saying he did not want to place his workers in the same position he is in.

For some it's a must for others it's a way out of their own mess.

PasturesNew

I think the thing that surprises me most is how much they're "allowed to keep to live on" in the time between when they go BR and when it ends. e.g. A family of 4 could reasonably say their food/groceries bill is £500/month. When you tot up all the outgoings they're allowed to keep it's a fortune. I'd have thought they'd have been allowed similar to "dole + work costs" for the two years. After all, they've had their choices/fun with the money, it would seem "only fair" that they were told how much they had to live on and not the other way round.

Years ago it was a total "shame for life" thing, now it's more like "just popping out to the court, won't be long, when I get back we'll go out for dinner because it's back to normal"

repoamuse

geoffky wrote: »

i think its a essentail lifeline for people.just think of all the pressure put on people to follow the other sheep and go out and get credit .everywhere you looked there was pressure to go out and spend beyond your limits.so its no wonder so many people fell for it and its no wonder so many are going bankrupt.....good luck to them at least they wll be able to get a good night sleep once they realize they have fell for the biggest con trick in history...

I agree. I do think it is a much needed lifeline for some, however the system needs 'tweaking', to catch those who deserve harsher treatment

Did anyone see that programme 'how to rob a bank', shown on bbc3 a couple of months ago?

bo_drinker

It surprises me how many educated people are absolutely useless with money. I have met some over the years, you get talking and they have not got a clue how to run their finances. And some file for bankruptcy so easily, they don't learn from it. They get a bit slow on the work front and live off the credit card etc etc. The slippery slope.

puddy

personally i am not sure exactly how bancruptcy works but even with this ignorance i believe that its not as easy (in the following years) as people on this and other boards say. its difficult to get credit, take out loans, enter into contracts etc etc, even bank accounts are limited, why would someone want that
however, as OP says, i really dont understand how someone gets to keep stuff like that, i was under the impression that all that stuff was taken away

PasturesNew

jenner wrote: »

personally i believe that its not as easy (in the following years) as people on this and other boards say. its difficult to get credit, take out loans, enter into contracts etc etc, even bank accounts are limited,

Mostly these are things I've managed to live without. Mostly these things aren't needed for life. In fact, being able to get them so easily was the start of the problem, so not being able to is a bonus. People stopped appreciating the benefits of these and started taking them for granted.

silvercar

I know people who went bankrupt and managed to keep their cars, personalised number plates, kids at private schools etc I also know of someone left without anything by bankruptcy. Like everything else in life, I guess it effects people differently.

olly300

silvercar wrote: »

I know people who went bankrupt and managed to keep their cars, personalised number plates, kids at private schools etc I also know of someone left without anything by bankruptcy. Like everything else in life, I guess it effects people differently.

I know from having friends and family educated privately that it's not always the parents paying the school fees it can either be:
1. The grandparents paying
2. Due to a bursary/scholarship (which occurs in most of the cases as private schools are charities).

GDB2222

I was surprised that quite recently the discharge period was reduced to 1 year, although the bankrupt person can be required to go on paying for a total of 3 years. Bankruptcy has certainly become an easier option.