MSE News: Record number declared insolvent 2 December 2009 at 2:28PM edited 5 February 2010 at 2:55PM in Debt-free wannabe 4 replies 1.8K views

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"A record number of people were declared insolvent in England and Wales during 2009 and the figure looks set to continue climbing this year, data shows today ..."

Read the full story:
Record number declared insolvent

Paul_Varjak

But the figures for 2009 include Debt Relief Orders - which were only introduced in 2009! Not sure how many DROs there were though.

davidgmmafan

I'd guess at a lot, no scientific I know, but they are basically a cheap way to go bankrupt. Personally I think the banks taking what they see as a hard line will come back to bite them.

If someone is in genuine difficulty and the banks keep piling on charges and interest (as they are entitled to do under the contract) it pushes the person more towards insolvency. Where I assume the bank gets very little return even by selling the debt on.

I thought insolvency always went up after a recession, and we may not be out of the woods yet.

pepe2008

I just wonder how many people are being made/ taking Insolvency even when the Lenders haven't done their job correctly in the first place.
Incorrect advice, reckless lending and unenforceable debt have a lot to answer for.
Pity the Banks keep getting away with it.

edit; 'Sorry, taxpayers, we cant afford to pay back the Billions this month because of all the Bad Debts we are being forced to write off.'

davidgmmafan

Frankly I a disagree with with all this debt write off stuff. I mean yes the banks should keep proper records and it reflects badly on them they did not, and debts should certainly be struck out if, as has occured in some cases, the person has been disadvantage by them making an error because they didn't keep the original agreement.

However if you've borrowed the money you know you owe it. I agree banks need to do a HELL of a lot more to help people. They should freeze interest in bad situations, but they don't. They just keep piling it on making the most rational course of action, in some cases, for the debtor to STOP making any payments so that the debt gets sold on (at this point the bank gives up on getting the money and stops charging interest).

Totally agree about lending too much.