Very quick question re bankruptcy

tallyhoh

If someone owed approx £100,000 with a take home pay of £1000 and outgoings (minimum) £650.00 monthly, would there be any option but bankruptcy? No assets and no home, not even a car.

Richard_S

tallyhoh wrote: »

If someone owed approx £100,000 with a take home pay of £1000 and outgoings (minimum) £650.00 monthly, would there be any option but bankruptcy? No assets and no home, not even a car.

Hi tallyho,

There are other options but I can't think of one that makes sense.

This sounds like an exam question; did I pass??:D

tallyhoh

Hi Richard, not an exam question but you always pass in my books.

The reason I am asking is that a friend owed approx half of this with the same take home pay and outgoings and was advised that the only option was bankruptcy because of the time it would take to repay it. That was payplan I believe.

I tried to work it out myself and for a debt of £100,000 paying £350 a month (not good with maths) I think it came to a repayment time of approx 24 years.:eek:

Richard_S

tallyhoh wrote: »

Hi Richard, not an exam question but you always pass in my books.

The reason I am asking is that a friend owed approx half of this with the same take home pay and outgoings and was advised that the only option was bankruptcy because of the time it would take to repay it. That was payplan I believe.

I tried to work it out myself and for a debt of £100,000 paying £350 a month (not good with maths) I think it came to a repayment time of approx 24 years.:eek:

Hi tallyho,

You're about right with your maths, and really, what is the point of committing yourself to that sort of timescale when bankruptcy will allow you a fresh start.

I'm assuming you've taken appropriate professional advice; bankruptcy is not without it's problems but it does draw a very "clear line in the sand" and allow you to put the mistakes of the past behind you.

Any other queries then please post again.

Richard

tight_jock

tallyhoh wrote: »

If someone owed approx £100,000 with a take home pay of £1000 and outgoings (minimum) £650.00 monthly, would there be any option but bankruptcy? No assets and no home, not even a car.

IMO there is very little alternative with figures like this......but, there are those who will advise you to scrimp and save and pay every penny back.

The only person who can make the decision is the person with the debt..having first been to the debt advice charities and got Professional advice for free.
:beer:

tallyhoh

Hi Jock. regret scrimping aint his thing. I remember years ago (about 16) before his debts got this bad working it all out for him with payments to his creditors and a generous budget for his living expenses. I felt dead proud because there was £50 a WEEK left over for him to play with.

HE WAS AGHAST, he said there was no way he could live on £50. Now if you think that his living expenses had already been taken into account and the £50 was sweetie money, well, there not really much hope for him.

Bankruptcy is the only way out that I can see but then he will just get into a mess again. Its too much of an easy option for him.

I despair.

tight_jock

tallyhoh wrote: »

Hi Jock. regret scrimping aint his thing. I remember years ago (about 16) before his debts got this bad working it all out for him with payments to his creditors and a generous budget for his living expenses. I felt dead proud because there was £50 a WEEK left over for him to play with.

HE WAS AGHAST, he said there was no way he could live on £50. Now if you think that his living expenses had already been taken into account and the £50 was sweetie money, well, there not really much hope for him.

Bankruptcy is the only way out that I can see but then he will just get into a mess again. Its too much of an easy option for him.

I despair.

If he does go BR then he`s gonna have to account for every penny to the OR. And if he is lucky enough to have £50 a week over then he`ll lose some of that in an IPA for 3 years.

:beer:

tallyhoh

He should have listened 16 years ago. In a way I hope he is left with nothing for fun, he may learn a lesson. However he has been bankrupt before and checking the gazette he was refused dicharge after 6 years. Thats serious stuff. And now he's done it again.:mad:

For some people it may be an easy option, I stress some people. It would devastate me.:eek: