Not to create bad feeling, but why bother..

duncans-mum_2

13000 wrote:

when it seems it would be easier to just go bankrupt. I've been reading a lot of stories on here about "how do I go bankrupt" and the like. (some not even knowing how to spell it properly)

It seems some people cannot be bothered to even try to pay off their debts (I KNOW this is a minority and some people on her would rather of not have gone bankrupt at any cost)

Diverting from the discussion that has ensued (which are all good and valid)
People may come on here initially and ask "how do I go bankrupt?" They may still be at a stage at looking at their options, haven't had the benefit of this site before so think that is their only way out. Although I have never been in a bad enough situation to ever consider bankruptcy, certainly coming on this site changed my attitude towards money and how to pay of my debt. These people just need to come on here for a while to get re-educated, and shown that sometimes there are other options first, dependant on how badthe circumstances.

ManAtHome

Penelope_Penguin wrote:

Hi, MatH! Are you suggesting that a bankruptcy lasts for 6 years and an IVA for much longer? Can you explain please?

Hi Penny - quite right, got me IVAs and DMPs mixed up.

rog2

I read this thread with interest - I totally agree that, when taking on debt we also take on an obligation to repay that debt. However, in many cases, the original debt (Loan, CC or whatever) is taken out by people who, quite understandably, can not foresee any short term detrimental change in their circumstances. We are advised to take out insurance, which usually has the effect of increasing the amount repayable by up to 25%, and, when required, there is often an obscure clause which allows the insurer to refuse to cover payments.
Banks may, quite glibly, declare that they will help you if you encounter financial problems - in reality the type of help most often offered is designed to be of more help to the creditor than the debtor.
Yes, of course as in any situation, there will be the minority who know how to 'play the system' who will use 'bankruptcy' to their own advantage.
My impression, though, is that most people, certainly on this forum, who either opt for bakruptcy, or have bankruptcy forced on them, have genuinely tried to manage their debt in unexpected circumstances, over which they have little, or no, control.

kathfisch

How nice that dfws can have a decent 'pub' conversation about this... rather than descending into a slanging match

I was reading this article from yesterday's Guardian: http://www.guardian.co.uk/g2/story/0,,1883665,00.html and thinking that there are so many circumstances that can lead people to declare themselves bankrupt. I agree that those who do it more than once fall into a different category but to those who find it their only option (through whatever circumstances) and learn a new way of life from it - good luck to them :T

There are, no doubt, some first time posters on here who might think of bankruptcy as.... perhaps not an 'easy' way out but certainly a way out of a situation in which they feel completely trapped and hopeless. When you don't know about DMPs and IVAs and you have the pressure of crippling debt on your shoulders... going bankrupt is probably the only solution you can imagine. Making a first post on here is often the first time people have owned up to their levels of debt and looked for help rather than burying their heads in the sand... when you've been refusing to acknowledge a problem for years it can actually seem worse in your mind than it does on paper. And most probably many of those people realise that (with a revolution in their spending and lifestyle) they do not need to go bankrupt and are relieved to find that there are other options available... from simply cutting back and snowballing to a DMP or IVA.

When we understand all the options available and can look at someone's situation objectively their thoughts about bankruptcy might seem overly drastic (frustrating even) but that's what this place offers... non-judgemental advice for people who really need it and who - by definition - don't have all the information at their fingertips yet.

seven-day-weekend

tyllwyd wrote:

From what the other poster said, if his wife is giving him £2.5, I suppose she is effectively buying him out of the house so he doesn't have any equity left in it. I guess he is not losing a roof over his head because she will continue to allow him to continue to live in the house, but financially he has lost it. I don't suppose there are that many couples where one partner goes bankrupt and the other one can afford to buy them out of the jointly owned house.

He is not living in the house, he is renting nearby, but yes, that is what is happening, she is giving him his share of the equity which will go to his creditors and therefore he will have no more equity left in the property.