A mate has gone bancrupt

Pobby

Anecdotal but maybe worth mentioning.A friend,aged 29,has just declared bancruptcy.He ran his own shop but in about 6 years he ran up £60k of cc and loan debt.bearing in mind that he doesn`t own anything bar a £3k car which is in his mothers name I feel that the lenders have been very rash in lending thai amount.

So last Tuesday morning he trots into Bath and gets a one year order.I think his case number for this year was 388:eek: .The judge asked if there was anyway he could pay off the debt.Friend replies no and the judge stamps the papers and says``sign of the times``!

Kevicho

Sign of the times

Hate to say it and not having a go at your friend here but i think thats a disgrace, there are many people here in more debt who are willing to make the sacrifices necessary to take responsibility for there actions and pay the money back

I hope your friend can at least learn from this and make a good second go at his life

Pobby

Yes,let`s hope this is a lesson but in my line of work I deal with a lot of small retailers and for most it`s tough going right now.I know that many,who just a couple of years ago were doing OK are now struggling.Rising business rates,internet and so forth are giving them a battering.I think,for many ,they are waiting for the good times again and so they remotgage,borrow,anything to keep it all going.Ah the joys of Gordon Browns miracle.Seem to remember a miracle economy 20 years ago.Now what was her name,I rember Thatch or something!

cookiesncream

Kevicho wrote:

Sign of the times

Hate to say it and not having a go at your friend here but i think thats a disgrace, there are many people here in more debt who are willing to make the sacrifices necessary to take responsibility for there actions and pay the money back

I agree, my OH had a judge who was sympathetic but the OR wasn't (they treated him worse than the agressive DCA's). OH's debt was £75K that ran up over a long period after a divorce and a re-morgtage went wrong.

I do think they're are people who run up debt irresponsibly with the attitude of 'Oh, I can just go bankrupt' Gets me very :mad: (not that I'm saying it's the case here)

earwig

let me say that giong bankrupt is not a case of trotting in and forgeting about it my oh went bankrupt last year after having to take a paycut of 120.00 per week yes not month a week we tryed to do an iva and was turned down as we didnt have enough money and we would have to live well past 100 to do a dmp so we was adived to go bankrupt so dont tar us all with same brush with your holly than thu act you spent it you pay it back line as we tryed to pay it but coundnt even the judge said somtimes you just have to give up and try again a change in your situation may happen and you may end up having to do this and then you will see how easy it is and may then not be so quick to slate us what have had to do this

cookiesncream

Woooaaahhhh, hold the phone! I'm not slating the people who are genuine.

I understand how difficult it is, I really do. I was referring to irresponsible spenders (and I did say that), not the people who have no choice.

No-one has a holier-than-thou attitude here, we're all in the same boat supporting each other, whatever route we decide to take to get us out of debt.

earwig

hi im not saying you soley its just this is not the first time i have read somthing like this and usally bankrupcty on this site is often slated

i just wanted to piont out that we are not all like the op freind i was told to go bankrupt as well but with oh debts gone we felt that we should repay mine as the was jointly run up and with a bit of cutting back we could do this

my oh did not take the decsion lightly to go bankrupt and worried himself silly about doing it and even after the court date still worried about it

we have not got away with his debts my oh has to do overtime to make ends meat and the or will take between 50 70 % of his overtime but he still dose it so we can pay back my debts and by the kids birthday pressants ect

please dont take it to heart it was not you i was getting at but i wanted people to know that we are not all irresponsable people what have to take this route i do understand your point but wish people wouldnt allawys think its the easy way out if it was i would go bankrupt and lose my debt instead of my oh working overtime to pay them back

cookiesncream

I know what you mean. My OH put off going bankrupt for 7 years. It's 6 months on and he's still dealing with the stress of it. We also decided not to add my £3K on top of it but in hindsight it might have been better for us as a couple.

I also agree that there are negative posts towards people who have no other choice. We looked into IVA but didn't have enough disposable income.

I'm truly sorry for taking it to heart. I'm so used to people doing that when I speak my mind on here! Thank you for giving everyone a perspective from someone who's been through it and working out to the other end.

brokenwings

I see both sides of this - i am in debt about 2.5 times my annual gross salary and just keeping my head above water

i am fortunate enough that most of mine is loans with end of dates set in stone as long as i keep up payments, once thats done ill have £1000 per month to put onto the credit cards

i would dearly LOVE to be able to go bankrupt - id like to say that what stops me doing it is a sense of responsibility - that my reckless spending was the cause of my debt so i want to be responsible and pay it back

BUT

if i am honest - what stops me is the fear of what my family would think, the sense of shame i would feel at seeing my name in the paper, of my employers finding out

so i can see that although it looks like an easy option - bankruptcy may be easy physically but to anyone with an ounce of self respect its impact is deep

CTT_2

Pobby wrote:

Anecdotal but maybe worth mentioning.A friend,aged 29,has just declared bancruptcy.He ran his own shop but in about 6 years he ran up £60k of cc and loan debt.bearing in mind that he doesn`t own anything bar a £3k car which is in his mothers name I feel that the lenders have been very rash in lending thai amount.

So last Tuesday morning he trots into Bath and gets a one year order.I think his case number for this year was 388:eek: .The judge asked if there was anyway he could pay off the debt.Friend replies no and the judge stamps the papers and says``sign of the times``!

At least your friend tried to run his own business but unfortunately it failed. Happend to a friend of mine who ran his own flower shop. When the going got tough the bank manager just offered him more loans. Ok my friend could have said no but he was desperate. I hope your friend is soon back on his feet.

Addicted2Chocolate

his case number was 388 of 2006? that is not a busy court then. a court lcoal to my is in the high 800's!!