Bankruptcy Threas

fc123

tomterm8 wrote: »

i think there are many reasons people go bankrupt... but 95% of it comes down to people being irresponsible or making bad mistakes. the characterisation of bankrupts being irresponsible is therefore not unfair.

As Alan M posts also, businesses have to take risks...OK, they have to decide how much risk at each stage but without some risk, the business may just wither away to nothing eventually.

I know of someone who got done big time on an order 2 years ago. 80k. A risk taking it on but nothing extreme, checked them out, usual day to day business for them.
The customer never paid, they carried on for a further 2 years, used up reserves ('savings' in business) but the cashflow and loss could never be recouped.
They went BR recently. Very prudent owner, long standing business but this bad debt eventually took them down.

I have read posts (not on MSE ) about taking loans and how long should they wait to go BR...apparently it's 3 months.

I agree with Aln M. Different BR for business and personal.

As you go through life, the blk/white view from when one is younger becomes more grey as judging people is bad form IMO.

Mozette

I know a few people who have gone bankrupt because others have quite cynically avoided paying them. I also know of a few people about to go over the edge because there is no more equity to take out of their houses.
There are all sorts of people with all sorts of reasons, much like anywhere else in life.

Thrugelmir

Alan_M wrote: »

This is the typical ignorant understanding most people have of bankruptcy and why the one size fits all system we currently have is simply outdated.

I'm a discharged bankrupt due to a business failure, in my case I had a customer go bankrupt owing me £250,000, who in turn went bust due to his customer going bust....kind of a domino effect, my customer was confirmed by my bank to be a low credit risk.

My credit file simply states "bankrupt", so I'm classed the same as anyone who did overspend on holidays and Plasma TV's.

It is not a soft option, it can be depressing and humiliating and can genuinely be through no fault of your own.

What do you base your 95% figure on? The day I arrived in court for my hearing, all the other people I spoke with were without fail businesses being wound up.

It's about time we had categorised bankruptcy.

Every case is different whether it be personal or business.

We need tighter rules, education etc for both individuals and smaller businessess to manage their financial affairs better.

divadee

reffered to the forum team