Let those with the debts pay the price, not the prudent and sensible.

homelessskilledworker

I think what most supporters of a property crash dislike most is the fact that so many people are sitting on so much bad debt and apart from every conceivable trick in the book allowing 100's Billions of pounds just to be written off at the stroke of a pen many are allowed to still sit it out in an asset they could be using to pay debt off... PROPERTY.

I have no problem with people borrowing as much as they like, but what really gets my goat is when people do not honour their debts, and what makes it criminal in my eyes is when I have to be part of paying it back.

I am not just on about problems within the housing market here, I am talking Bankers, even whole countries where there is a strong chance some will now go bankrupt.

Why have I gone into rant mode:), had three emails today advising me that I too could write my personal/business loans off, not that I have any to write off.

I really hope we are going back to a time when it was seen as a favour, even an honour for a bank to trust you enough to lend you a sum of money, and a time when there was a stigma to not paying that money back.

People who pray for interest rates not to go higher as they would be in serious trouble, did none of them allow for a few percentage points either way, so now the savers and pension pots have to bail them out.

Lets hopefully go back to a time when to not pay your debts was seen as an anti social problem.

Mr._Pricklepants

homelessskilledworker wrote: »

100's Billions of pounds just to be written off at the stroke of a pen

What are you on about? Greece?
Hmmm....no...you're talking about property market, so it must be hundreds of billions of mortgages written off. When did that happen?
Or maybe you're talking about SMI or personal bankruptcies?

Please elaborate because your OP is just waffles.

wymondham

I wonder if the new proposed rulings on bailiffs might be abused so people who are not vulnerable will be able to keep them at bay?

homelessskilledworker

wymondham wrote: »

I wonder if the new proposed rulings on bailiffs might be abused so people who are not vulnerable will be able to keep them at bay?

I have recently taken a hit because of a bankrupt, and in this instance I was not too best pleased.
The guy was just reckless, and as someone who used to come and watch me play rugby and share a pint I was not to happy to find out about his circunstances by mail.

I have taken on work where cashflow was an issue, but I would sooner sell a kidney than let a handshaking customer down.

Far too many people in the UK know "their rights" these days, to the point wher people are now acting the victim and using the sysyem to steal
An example is a buisness that borrows to the hilt and where the director lives a champagne lifestyle only to end up doing a so called "deal" with the bank or going bankrupt, for crying out loud!! this is even happening with the HMRC, people doing deals with their taxes, there was a time when people treated tax issues with fear.

Carl31

I think Bankruptcy is a far too easy option for many nowadays, its like its a few years of inconvenience after living many years of enjoying yourself to the max

ILW

I believe that bankruptcy was originally meant as a way of creditors getting the fairest distribution as possible whilst still taking a hit. It does appear now that it is more geared towards to creditor getting a fresh start with no ongoing liabilities.
Corporate insolvency is a complete con with pre packs being bought for peanuts by the people that ran up the debts in the first place. Many on a serial basis.

ukcarper

I wonder what proportion of people going bankrupt are homeowners because the way I understanding your house would be sold.

Thrugelmir

homelessskilledworker wrote: »

this is even happening with the HMRC, people doing deals with their taxes, there was a time when people treated tax issues with fear.

People are still getting hit with sizable penalties. So the "deals" are still far worse than originally declaring the income and paying the tax.

DirtyDick

On the one hand, I agree. Moral responsibility for one's actions is very important.

On the other, however, a lot of successful businesses emerge from people who've already gone bankrupt in the past. Sure, they should be personally liable for their debts up to a realistic level, but someone should not be marked and in debt for life as a bankrupt.

Moreover, corporate taxes at the level of massive multinational companies are extremely complex and they will rightly contest what they see as mistakes by HMRC trying to tax them too much, same as the small businessman will want to write-off all expenses possible. Of course, if these companies also happen to pay a significant amount in tax and employ a lot of people, it makes for a more flexible discussion.

MrRee_2

Homelessskilledworker - you do talk rubbish most of the time - BUT, you are spot-on with this one ... nice OP.

KrytenIceCubeHead

I agree! The imprudent banks should take full responsibility for lending money to people patently unable to pay it back - and take the loss. No haircut of 10 or 20%, a haircut of 100%.