At least 2 out of 3 people declared bankrupt are not home owners.

Thrugelmir

lostinrates wrote: »

Where does the money come from, to the system, if they have no assets? Tax? Banking fees? (i'm sure I used to know more about this, weren't we taliking about this a year ago?)

Lenders price the risk of default into their lending margins.

ninky_2

i think there is a potential issue with bankrupts who hide assests by putting them in other people's name (partner) or hiding them overseas. i know of some cases of repeat bankrupts in the uk who have done this. they own several properties as a result and are literally laughing all the way to the bank.... i wonder what percentage are this sort of astute 'professional' bankrupt and what percentage are those who have just mismanaged money or found themselves in unexpected circumstances?

Really2

lostinrates wrote: »

Well, presumably its recovered...just not from them.......via charges? Via taxes? Absorbed as commercial loss (back to assumed from charges)

Exactly (recovered from others:)). So in the end of it all we will be paying for everyone's loss.

I wonder if the "have it now" outlook as changed or will it reappear when credit is eased?

I just hope all card companies are now checking with each other to stop multiple cards with high credit limits.

Really2

ninky wrote: »

i think there is a potential issue with bankrupts who hide assests by putting them in other people's name (partner) or hiding them overseas. i know of some cases of repeat bankrupts in the uk who have done this. they own several properties as a result and are literally laughing all the way to the bank.... i wonder what percentage are this sort of astute 'professional' bankrupt and what percentage are those who have just mismanaged money or found themselves in unexpected circumstances?

But you could not do that unless you are in full ownership, (mortgage free) or the assets are not loaned against.

lostinrates

Really2 wrote: »

Exactly (recovered from others:)). So in the end of it all we will be paying for everyone's loss.
.

Yes, thank you. This is what I was trying to say.

lostinrates

ninky wrote: »

i think there is a potential issue with bankrupts who hide assests by putting them in other people's name (partner) or hiding them overseas. i know of some cases of repeat bankrupts in the uk who have done this. they own several properties as a result and are literally laughing all the way to the bank.... i wonder what percentage are this sort of astute 'professional' bankrupt and what percentage are those who have just mismanaged money or found themselves in unexpected circumstances?

Trying to sort through my mind, didn't the Hamiltons get to keep their home by having it in Christine's name not Neil's? I'm trying to remember if this was a famous case of the ways this was ...flawed..or whether it was just something I imagined.

Thrugelmir

Really2 wrote: »

I wonder if the "have it now" outlook as changed or will it reappear when credit is eased?

The screws are being applied ever so slowly to ease credit out of the system. The "have it now outlook" will change as people find they can't. The contraction of credit is going to be a long drawn out process as any sudden moves will impact severely on the economy and would merely make the current situation worse. Abundant credit instantly available at cheap rates of interest is being consigned to the history books.

Really2

Nice to have something to debate about.

ninky_2

Really2 wrote: »

But you could not do that unless you are in full ownership, (mortgage free) or the assets are not loaned against.

well it's quite possible for the mortgage and house to be in one partner's name (assuming they have the income) whilst the other partner takes out the debts and declares bankruptcy.

i'm not sure how much tighter the unsecured lending criteria have got since the so called credit crunch. consumer credit cards and loans seem as easy as ever to come by.

all storing up bigger problems for the future. how much are out taxes going to be expected to prop up a very flawed system.

DVardysShadow

silvercar wrote: »

Bankrupts can keep their home. For a start if there is no equity in it, or even negative equity, the official receiver will let them buy back the beneficial interest in it for £1 plus legal costs. Even if there is equity in it, this can be bought from the official receiver by an associate of the bankrupt, or even the bankrupt themselves, upto 3 years after banktruptcy. The OR will allow bankrupts to continue paying the mortgage if it is not significantly higher than rent would be.

Lesson being, if you are going to go BR, it will be far less pain to have MEWed to the max and to have no equity in the home.