10 Myths about Bankruptcy

Minxz

what a useful thread- many thanks!!

Neyo

Excellent stuff will help so many people whom come to this section

get_me_out

debt_doctor wrote: »

A very good and interesting post, except........




Council tax IS a provable debt, and 'advance' c/tax will go in until (for this year) March 2010 if you have been issued a final bill or liability order.

DD

That's interesting as my council would only wipe my council tax liability until the date I went BR. They insist the balance of the year 14/8/08 til 04/04/09 is still owed. Even though they have a liability order in place for it, I also thought it was included and cleared until next finanical year.

philnicandamy

Hmm by the little ammount of posts you have made (and some of your past postings..)you dont really have a clue about the ins and outs of bankruptcy.....I suggest you do some further reading & we'll talk again...meanwhile have a read of this first

http://forums.moneysavingexpert.com/showthread.html?t=443692

if you need a hand with the bigger words i'll be happy to help...

Bleddry

There are always exceptions to the rule, but I would say that most people, on this site especially, are victims of 'irresponsible lending' by various banks and other loan companies. Now the credit crunch is upon us, these companies are being a little more careful with their lending. I certainly don't think many people are having a laugh about their financial difficulties - just check out most of the Log on names, makes for quite sad reading really. Anyway, I'm no expert, but I expect the courts take a tough stance on repeat offenders.

fiveyearplan

freak01 - I would say the people who run up debts and laugh their way to bankruptcy are few and far between plus it is fraudulent to run up debts knowing you are insolvent or have no intention to pay - that is not why a person typically goes bankrupt.

dollparts

Freak01- is your wisdom based upon your username?

Emby_2

but I would say that most people, on this site especially, are victims of 'irresponsible lending' by various banks and other loan companies

Hmmm...... The person who takes the loan is as irresponsible as the bank who lends easily im afraid. Yes the banks had been lending way too easily but the person who takes that loan/credit card should be fully aware of their own financial position.

Taking responsibility is is an essential adult trait and if people keep passing the buck or blaming other institutions/individuals for their own circumstances they never learn.

Very very important!

fiveyearplan

Lets not start a slanging match! Yes it is important people take responsibility which is why some people choose to go bankrupt. I agree you can't put 100% of the blame on the banks who lend irresponsibly just as you cannot say all bankrupts are 100% to blame. There is a whole myriad of reasons people go bankrupt. We are not here to judge.

lee316

Talking about irresponsible lending, couple of weeks ago I've got summoned by the bank to go and see one of the managers to talk about our joint account. I went by myself, as hubby was at work. It went something like this: bank manager: see you have councelled a few direct debits, mainly mortgage and secured loan
me: (whole sob story about being made redundant, being in arrears on mortgage, hubby low wage earner blah blah, all honestly and kept to the facts)
bm: you had a couple of dd's that came back as insufficient money in the account
me: can you tell me why do you let dd's out when you can see we haven't got money to cover them, surely you can refuse to let them out
bm: I cannot answer that
me: but than you charge me a fee for returned dd, which puts us further in debt
bm: you have got some bank charges due on 1st, in the sum of £96, we want to help you out, as you have banked with us for years, how would you like us to do that, anything we can do to help?
me: waive the charges
bm: we cannot do that
me: give me £100 overdraft
bm: sorry, credit rating is bad, we cannot do that
me: so what can you do to help?
bm: well lets see, your credit rating is bad, but your husbands isn't so bad hmm
Isnt bad? Are they having a laugh?
And than came the bombshell:
bank manager: WE CAN GIVE YOU A £2000 LOAN, WOULD YOU LIKE THAT, THAT WOULD HELP YOU OUT

!!!!!!, After I told them that house will get repossesed, we haven't got a penny to rub together, they see how bad things are, and they offering us 2000 pounds?

Now how many people would be clatching to that straw? If your fridge is empty and there is two weeks left till payday, and you got exactly £27.50 left to last you untill then, what would you do? I know we did in the past, another contributing reason as to how we ended up so much in debt, when you are desperate you do things you normally wouldn't, don't you, and someone waives 2000 pounds in front of your face like that you take it.

Well needles to say I declined her offer, and proceeded to tell her exactly what I thought of her money and the bank and where to shove it, they weren't going to put me further in debt this time.
And we made that £27.50 last, and nobody starved. It can be done.