Bankruptcy... Is it to easy?

evilwitch

mewbie wrote: »

Where do you put accountability? Week after week we received offers of credit - a 10k cheque here, a 6k credit card there, and all just requiring a signature. Not asked for, just stuffed through the door. I don't think companies offering credit should be allowed this form of marketing - it is obviously very tempting to some.

no-one makes you sign. Accountability lies at your own doorstep. CC companies/the governement/the local stray dog aren't the ones making people go out recklessly spending on things they don't need and can't afford. These offers are from businesses trying to make money, which AFAIK is the purpose of being in business to stop them marketing is like stopping any other business from advertising.

Individuals that went bankrupt through over spending have themselves to blame and should be 'punished' to the point where it is enough of a deterrant to make damm sure they don't go that route again. Businesses and circumstances beyond your control (redundancy/illness/death etc) are different and should be treated as such. currently IMO the few that abuse the system are unfairly tarring everyone who needs the lifeline and second chance that bankruptcy can offer.

I know someone who is merrily spending her way towards her third bankruptcy. She isn't findnig it difficult or prohibitive to get there. After each case she changes her name, claims harrasssment so she gets a new housing association house and therefore new address. Makes minimum payment on each CC so there are no missed payment marks on credit record. In the time building up to the bankruptcy (week or so before I believe) she applies for more credit cards/new bank account with overdraft which aren't declared at hearing. The spending then starts all over. Naturally she retains her car/tv/sky tv as they are all 'vital' for her and her son. As is the £500 pm grocery bill. She also ends up with a nill payment to the OR. Working PT and making sure income=outgoings sees to that. Plays the system to the extreme

I think the system needs some revision so it everyone isn't treated the same as the circumstances leading to the bankruptcy aren't the same.

Dan:_4

Adebisi wrote: »

I have never been in debt ever, always worked hard, bugeted, saved through my life so far, only had a credit card for holidays and paid it off in full after using it, never had a loan. But I bought a flat in 2005 and now it is in negative equity.

The chavs who spent all their money on going out and huge TV's only to get the neighboring flats reposessed and their credit card and loans wiped off get to come back in a few years (is it 5?) and pick the bones of the properties they lost. They could get them for less than 50% of their original price (they have already dropped below 30%) and will be sitting pretty while I pay the price of my own stupidness, the estate agent's/bankers greed, and the frivolous people who wanted mountains of things.

I am most probably stuck here for life, in a !!!!!! flat, while everone around me is being repossessed. I can't move home, move jobs or see any future. I just wait the sweet blessed relief of death the only other way out is to get fired from my job (which I love and will struggle to find a better one) and go bankrupt.

ahhh, bless you.

olly300

neverdespairgirl wrote: »

If only it were so fast!

I got a Legal Aid cheque last week for work I did in Nov. 2003.

I know it's not that fast hence I put the even later if they can get away with it.

Some of people I know are being royally screwed by this.

olly300

evilwitch wrote: »

no-one makes you sign. Accountability lies at your own doorstep. CC companies/the governement/the local stray dog aren't the ones making people go out recklessly spending on things they don't need and can't afford. These offers are from businesses trying to make money, which AFAIK is the purpose of being in business to stop them marketing is like stopping any other business from advertising.

Individuals that went bankrupt through over spending have themselves to blame and should be 'punished' to the point where it is enough of a deterrant to make damm sure they don't go that route again. Businesses and circumstances beyond your control (redundancy/illness/death etc) are different and should be treated as such. currently IMO the few that abuse the system are unfairly tarring everyone who needs the lifeline and second chance that bankruptcy can offer.

How do you tell if someone has been made bankrupted through redundancy/illness/death or is just an over spender?

evilwitch wrote: »

I know someone who is merrily spending her way towards her third bankruptcy. She isn't findnig it difficult or prohibitive to get there. After each case she changes her name, claims harrasssment so she gets a new housing association house and therefore new address. Makes minimum payment on each CC so there are no missed payment marks on credit record. In the time building up to the bankruptcy (week or so before I believe) she applies for more credit cards/new bank account with overdraft which aren't declared at hearing. The spending then starts all over. Naturally she retains her car/tv/sky tv as they are all 'vital' for her and her son. As is the £500 pm grocery bill. She also ends up with a nill payment to the OR. Working PT and making sure income=outgoings sees to that. Plays the system to the extreme

I think the system needs some revision so it everyone isn't treated the same as the circumstances leading to the bankruptcy aren't the same.

Are you sure she is bankrupt?

As it stands now, you're all tarred with the same brush no matter the circumstances. If anyone tells you banckruptcy is easy, it's not, it's a hard slog and you're basically persona no grata for 6 years.

If you then go a second time, you face not being discharged for 15 years, that's a big deal, as you can't hold bank accounts never mind obtain any form of credit, mortgage, rent etc.

Wicked_witch

The ease or difficulty of going bankrupt depends largely on your emotional standpoint imo. We had to declare personal bankruptcy some years ago because my husband's disability worsened, making it impossible for him to work full time. Debts that had been payable suddenly became out of our reach. Although the process was not that 'hard', the stress, depression and fellings of humiliation at having someone go through every part of your life, having to take all the savings books, bank statements etc to hand over, having banks and creditors ringing us at all hours of the day- it was horrendous. Never will I go through that again!

Coversely, if you don't have enough self respect to care about that sort of thing, even a harder process will be 'easy' for you.

Kenny4315

Adebisi wrote: »

or a get out of jail free card for the irresponsible spendaholics?

That's ginkcuf bang on the mark.

Alan_M_2

piggeh wrote: »

I do believe Official Receivers sometimes need to look into the background behind bankruptcy more thoroughly to pick up on anyone who is 'abusing' the system but generally I find the system fair. People take some risk in living a 'normal' life, you can't expect everyone to operate totally risk free.

My OR had an obsession with gambling debts, that's all they seemed to be interested in. Repeatedly questioning me if I'd had debt derived by any form of gambling etc etc.....I think I had a transaction on a bank account for £20 which was a flutter on the grand national...The time and energy put into this £20 was mind boggling....

They didn't seem in the slightest bit intersted about the rest of it.

Is there something special about the way gambling debt is dealt with? I never did get to the bottom of it.

Kenny4315

Alan_M wrote: »

The problem as I see it is the one size fits all system we currently have.

Good post bang on the mark, sensible business should be encouraged while spendaholic keep up with the Jones BAR STEWARDS that have racked up £100k buying SH*TE should be MADE AWARE THAT IF YOU CAN'T PAY FOR A 50" top of the range TV DON'T BUY IT. Perhaps a public flogging would do the trick. :mad:.

Certainly the system at present doesn't work and hence the country is in a total ginkcuf mess.

cuddlymarm

Hi

We went BK in the summer (we had a small business and could have told you this credit crunch was coming long before the government said anything. ) We struggled badly for 2 years before taking the decision to go BR and you do feel shame and you don't take the decision easily. The OR isn't there to punish you because quite often you've been punished enough already. An earlier comment was that you should have to manage on benefit levels but the aim is for you to have a fresh start so that you don't get into trouble again so you rebuild your life rather than just struggle along (its the strugging along that gets you in trouble in the 1st place)
I'm sure there are people that don't agree with me here but if you have been through bankrupsy and have had to explain this to your family and friends you will agree with me that it isn't an easy option

Cuddles

Kenny4315

I don't think anyone on here attachs a stigma to businesses that go under that were well thought through but have gone under.

Those that wind everyone up to the point of explosion are these BAR STEWARDS that have spent spent spent with virtually no chance of the PAY PAY PAY bit, on SH*TE SH*TE SH*TE they did not NEED, or could afford. I'd have 'em flogged, they wind me up something chronic.

They also have been taking up all the parking spaces at the gym with their ginkcuf 4X4's paid for by a 25 year remortgage of 'equity' in there home. :mad: These are the real culprits in the housing and credit boom, they are often the type 1 BTL chancers :mad: (remortgage to buy without any idea), and have with the aid of stupid banks :mad: , a doozy government :mad: and slack credit :mad: managed to kcuf the whole country up.