Can someone clear this up for me.

computerwoman

Hi an ex-friend of mine told me before xmas that he was trying to make himself insolvent, now he is a single father of 4 (3 still at home) all over 16, he is on benefits, and has rather alot of credit cards, bank accounts and loans, he said that the CAB told him he had to go over £10.000 to go insolvent, so he said he was going to f**k them all off and not pay anyone else a penny as after 7 years it goes away and you credit starts from scratch again, is this right, it doesn't seem as though this would happen to me, I mean do these firms just wipe the slate clean as he seems to think they do, or would he have to offer them something in return, if it is true, then how do people like him get away with it. this is why I said ex-friend, and could he go insolvent anyway, I thought you had to be running a business or something to go insolvent. if anyone can clear this up for me then thanks, as it has been playing on my mind alittle, to think that unsavory characters like him can get away with it.
thanks cw
Hi just realised this is in the wrong place so if some kind soul can put it where its meant to be then thanks.

mistyarthur

You can get arrangements with your banks and that messes up your credit rating for 6 years and then goes back to the start. Sounds like he just wants to be declared bankrupt which I think is only around a few years longer than a IVA before you can start to rebuild your credit rating but I am no expert on this things I'd be interested to know myself.

computerwoman

yes, thanks for your reply, I am just curious as to how it all works, as he seems to think that he can just not pay anyone for 7 years then start again, which is against everything I stand for really.
cw

mistyarthur

I'm not sure but I think to do it he has to be declared bankrupt and that means someone else will take control of his finances and pay of all that can be and then he will have a freeze on being able to get credit for a set number of years(around 7).
If he takes on extra credit in the knowledge that it is impossible for him to pay it back then he is liable to be done for fraud, after going to someone like CAB or a debt counsellor if they advise you not to take on debt then you shoudln't risk doing it because you can no longer claim you thought you could.
I think it's disgraceful banks don't check properly applications they should be able to detect things like people paying of bills with other credit and stop it before it is to late and ruins them.

computerwoman

yes I know what you mean, if I want something I save up for it like mad, its always more enjoyable when you get it that way, just before xmas I got a new cooker then as my Fridge/freezer packed up in between xmas and new year I saved like mad again and got a new Fridge/freezer on 4th feb, now I am saving like mad for my sons 21st birthday on 23rd march, I am going to up-grade his pc for him, the whole thing from scratch again, should cost me around £350 with a 19" lcd monitor as well.
cw