Bankruptcy... Is it to easy?

blind-as-a-bat_2

http://www.timesonline.co.uk/tol/money/consumer_affairs/article5489226.ece

Just food for thought

Broken_hearted

Bat you know fine well its highly unlikely that a creditor will make you bankrupt.

blind-as-a-bat_2

Broken_hearted wrote: »

Bat you know fine well its highly unlikely that a creditor will make you bankrupt.

That was not the point, its the use of it as a scare tactic.

Its a flip side view of how the BR system is abused

Besides those that dont know may decide to call it a day and do it themselves anyway.

Oh and to say they never will make you bankrupt is not true, if you have equity in a property, i think you will see that changing very soon, its the fastest way to get a return of there money, if they think there is enough equity in your property, if the goverment makes it hard or imposible to get a order for sale after obtaining a charging order BR will be used a lot more in certain situations.

missk_ensington

As some of you on here may remember from nearly 3 years back, I discovered that my partner who I lived with and had lived with for about a year, had over £90,000 of personal, unsecured debt that he just kept avoiding by putting the unopened demands in a cupboard, until one day I found them and opened the whole lot.

I told him all he could do was declare BR and I looked into it for him, he could wipe away his debt, and since he had no assets except a works van which they cant take anyway, he would make little contribution to his debt.

He had resolved that as a self employed tiler earning £200 a week legit and another £800 a week in his back pocket, that he could carry on with the same lifestyle make a few contributions for a year and then be discharged. For people with no assets and large debts bakruptcy is extremely easy.

Needless to say I ended the relationship and havent heard from him since!

Darth_Marty

Explain one thing if someone wouldnt mind, i read the times article and it says in a part of it - "Relatively small unsecured debts (with higher rates of interest) are suddenly becoming secured on property and then leading to this situation"

HOW DOES THAT HAPPEN?
How does a relatively small unsecured debt become secured?

Thanks.

missk_ensington

Darth_Marty wrote: »

Explain one thing if someone wouldnt mind, i read the times article and it says in a part of it - "Relatively small unsecured debts (with higher rates of interest) are suddenly becoming secured on property and then leading to this situation"

HOW DOES THAT HAPPEN?
How does a relatively small unsecured debt become secured?

Thanks.

Im no expert, but I guess if you take out unsecured credit and you default over and over again, they take you to court, you get a CCJ, they arent going to let you just walk away and not pay it whilst you have an asset (ie your house) so although you didnt secure your debt on your house, they can try and get the money thats in your house to repay your debt.

Its like banruptcy, a lot of people are made bankrupt and have their houses taken away to help pay what they owe, for debts that were all unsecured. Whilst you have an asset I dont think theres such thing as 'unsecured' debt, why else would they ask you if youre a homeowner when you apply for an UNSECURED personal loan/CC, what possible difference should it make to them if it isnt secured on your home anyway?

WTF?_2

missk_ensington wrote: »

Im no expert, but I guess if you take out unsecured credit and you default over and over again, they take you to court, you get a CCJ, they arent going to let you just walk away and not pay it whilst you have an asset (ie your house) so although you didnt secure your debt on your house, they can try and get the money thats in your house to repay your debt.

Its like banruptcy, a lot of people are made bankrupt and have their houses taken away to help pay what they owe, for debts that were all unsecured. Whilst you have an asset I dont think theres such thing as 'unsecured' debt, why else would they ask you if youre a homeowner when you apply for an UNSECURED personal loan/CC, what possible difference should it make to them if it isnt secured on your home anyway?

Homeowners are reckoned to be a better risk as they are tied to a place by ownership of their house (i.e. Unlikely to do a runner and simply disappear). Therefore whether or not you are a homeowner could affect whether or not you get an unsecured loan and the rate of interest of that loan.

mitchaa

I can walk into a bank with a gun and walk out with £100k 5mins later. I would of course be criminally convicted and spend 10yrs or so behind bars but i could do it.

Instead of that option, i could do it legitimately, spend an afternoon or so applying for every credit card, bank loan, and finance option under the sun, live the life of Reilly for a year or so, max out the credit limits and then when the threats of bailiffs are mentioned, declare myself bankrupt.

Once im declared bankrupt, wait a year before im discharged from the OR, move to a rental property (Fib about previous addresses) and then start the whole thing rolling all over again.

Hey i can even get the wife to do the same. Rack up £150k debts between us and go joint BR, that would save me having to work for a few years

BR is far too easy, dont let half of the numpties over on the BR section convince you otherwise, the majority have been keeping up with the Jones's and its come back now to bite them in the ar*e.

If there has been an unexpected circumstance, accident, death, redundancy, business not doing well then i support the need for BR 100%.

It's the idiots that abuse the system (probably the same idiots that abuse the welfare system) that boil my blood.

If anything like a Plasma tv or a sportscar or proof of foreign holidays has been paid for with the outstanding amounts then BR should be made about a million times more difficult.

If i was made BR through my own neglicence, i would be ashamed of myself and look at it as a massive failure in life, but hey that's just me.

Rightly so, it does follow you for life, a visa to America/Australia and the likes would i assume be declined as would thousands of job opportunity paths.

That was 1 of the 1st questions asked after the obvious in my job application pack.

mitchaa

http://forums.moneysavingexpert.com/showthread.html?t=1409997

Unbelievable, i had to read it twice.

My car needs new tyres, i'll just lump it on the credit card:mad:

There's taking advantage, and then taking the pis*.

Even the essential shopping and fuel made me laugh, a quick £500 shop and a tanker full of fuel more like:rolleyes: I would jump in on the thread but it will only end up causing me high blood pressure as i vent my anger

System is laughable, just like the benefits system.

louiser123

mitchaa wrote: »

I can walk into a bank with a gun and walk out with £100k 5mins later. I would of course be criminally convicted and spend 10yrs or so behind bars but i could do it.

Instead of that option, i could do it legitimately, spend an afternoon or so applying for every credit card, bank loan, and finance option under the sun, live the life of Reilly for a year or so, max out the credit limits and then when the threats of bailiffs are mentioned, declare myself bankrupt.

Once im declared bankrupt, wait a year before im discharged from the OR, move to a rental property (Fib about previous addresses) and then start the whole thing rolling all over again.

Hey i can even get the wife to do the same. Rack up £150k debts between us and go joint BR, that would save me having to work for a few years

BR is far too easy, dont let half of the numpties over on the BR section convince you otherwise, the majority have been keeping up with the Jones's and its come back now to bite them in the ar*e.

If there has been an unexpected circumstance, accident, death, redundancy, business not doing well then i support the need for BR 100%.

It's the idiots that abuse the system (probably the same idiots that abuse the welfare system) that boil my blood.

If anything like a Plasma tv or a sportscar or proof of foreign holidays has been paid for with the outstanding amounts then BR should be made about a million times more difficult.

If i was made BR through my own neglicence, i would be ashamed of myself and look at it as a massive failure in life, but hey that's just me.

Rightly so, it does follow you for life, a visa to America/Australia and the likes would i assume be declined as would thousands of job opportunity paths.

That was 1 of the 1st questions asked after the obvious in my job application pack.

yes i agree you could do that!

however the majority of people who go bankrupt do so with little other choice, it may be the only option

i would say bankruptcy is a far better soloution than suicide, which a good friend of mine chose as his way out leaving a family behind.

everyones situation is different and debt can occur to anyone after a little life crisis we never saw coming,

agreed some do abuse the system however until you have the facts to each situation i would say its wrong to judge (to quote your saying bankruptcy board numpties!!)

its so very easy to judge when you have never had a life financial crisis and have no idea of the trauma it can cause so be tollerant until you have the facts then judge by all means.