Article in Independent today (Sat)

LilyBart

The article reads as though it was written in a hurry and largely based on basic website info. But I expect we'll be seeing a lot more of these. It's going to be the big story this year. So far, most of the "human interest' angles on the credit crunch have focused on quite well-to-do folks having difficulty shifting their £600k Battersea/Fulham house in a stagnant market.

So_Sad_Angel

Hi All,

I feel that the worrying effect of the `credit crunch` will be that BR becomes more common..I feel this will be inevitable. Banks are no longer passing on rate reductions & already `tight` financial positions for many people will become untenable.

Just a shame that there is`nt a journalist out there prepared to `tell it as it is`with the facts about BR & enlighten those who are out there , like us. knowing that there is no `other way out`about the true BR procedure.

I think that they are scared that if they do there will be BR overload !!!

Angelxx

fermi

I've seen worse articles.:eek:

The Channel 4 guide to bankruptcy springs to mind.

http://www.channel4.com/money/feature.jsp?pageParam=1&id=334

Talk about poor research.:rolleyes:

Guide To Bankruptcy

Only the naive believe bankruptcy lets you start again with a clean slate

Got personal debts?

Can't be bothered to pay them off? Hey, why not consider bankruptcy! Or perhaps not.

Of the many sins committed by Jeffrey Archer, one he is frequently lambasted for is one he didn't actually commit: he was never declared bankrupt.

Although he might have tried to pervert the cause of justice - and was banged up for doing so - even Jeffrey wasn't stupid enough to declare himself bankrupt in 1973, when his creditors began clamouring for their cash after he had invested £420,000 (half of it borrowed money) in a fraudulent Canadian company. Instead, he wrote a best-selling book and paid them off.

Only the naive believe bankruptcy draws a line under past financial cack-handedness and the bankrupt starts again with a clean slate. The truth is markedly different.

How it works

Technically, anyone can go bankrupt. Previously, it was mainly companies and partnerships; increasingly, it's individuals who've been reckless with credit cards.
A court makes a bankruptcy order only after a bankruptcy petition has been presented - either by you (debtor's petition) or creditors who are owed at least £750 by you (creditors' petition) - and can be made even if you refuse to acknowledge or agree to the order.
So, once the bankruptcy proceedings have begun, it's in your best interest to co-operate fully. Even if you dispute the creditors' claims you should try to reach a settlement before the bankruptcy order is made.
If you want to make yourself bankrupt you should contact your local court to obtain the contact details of the nearest county court dealing with bankruptcy. Ironically, you'll have to pay a fee to the court.

The Official Receiver

The Official Receiver is a civil servant and the officer of the court responsible for administering bankruptcies. One of the Official Receiver's main duties is to investigate your financial affairs for the period before and during your bankruptcy.
He may report to the court - and he has to report to your creditors. If he considers that you've committed criminal offences in connection with your bankruptcy, the police will get called in.
You'll have to provide a full list of your assets and what you owe. Then you hand over these assets to the Official Receiver, along with all your financial records, bank statements and property.
The Receiver then puts an immediate block on your bank, building society and similar accounts. And if you try to obtain further credit, you'll be committing a criminal offence.

What happens to your assets

The Official Receiver informs your creditors that you're a bankrupt and tells them how much money will be shared out in the bankruptcy.
The costs of the bankruptcy proceedings, including any fees owed to the Official Receiver, are paid first from the money made available by the sale of your assets. Creditors then have to make their formal claims by a certain date.
If you own your own home, it will almost certainly have to be sold to go towards paying your debts. However, your husband or wife, whether or not a joint owner, may be able to put the sale off for up to a year.
If you rent, although the Official Receiver has no powers to repossess, he'll inform your landlord that you're bankrupt.
Once bankrupt, it's a criminal offence for you to obtain credit of £250 or more, either alone or with another person, without disclosing your bankruptcy.

Discharging the debt

Generally you'll be automatically freed from bankruptcy (known as 'discharged') after three years, but new legislation could mean this takes as little as six months.
Debts discharge releases you from most of the debts you owed at the date of the bankruptcy order. Exceptions include debts arising from fraud, certain crimes and fines.
If that sounds like a honeymoon to you, then apply to the court. However, if an utter chancer like Jeffrey Archer fought a huge battle to prevent his creditors from forcing him into bankruptcy, that must tell you something about life as a discharged bankrupt.

It ain't pretty.

rog2

Whilst I admire the Independent for highlighting 'Bankruptcy' in what is, for such a publication, quite a positive manner, the report itself is riddled with inaccuracies. The reference to 'writing off student loans' can be quite misleading, making bankruptcy seem like an 'easy way out' when Student Loans are one of the few debts that Bankruptcy does NOT wipe out.

tigerfeet2006

Bloomin' 'eck Fermi :eek: That is a corker :mad: . I would expect better from them :rolleyes:

fermi

tigerfeet2006 wrote: »

Bloomin' 'eck Fermi :eek: That is a corker :mad: . I would expect better from them :rolleyes:

So did I until I saw that last year.

tigerfeet2006

Maybe we all ought to email them and ask them to change it and sugest they talk to the likes of NDL, CCCS or the CAB to get a better article. That article is not going to help anyone.

fermi

tigerfeet2006 wrote: »

Maybe we all ought to email them and ask them to change it and sugest they talk to the likes of NDL, CCCS or the CAB to get a better article. That article is not going to help anyone.

I did last year. Didn't take a blind bit of notice.:rolleyes:

tigerfeet2006

Hmm! maybe a mass email might do it Though I thought I just saw a pig in the sky just now :rolleyes:

wherediditallgo

fermi wrote: »

I've seen worse articles.:eek:

The Channel 4 guide to bankruptcy springs to mind.

http://www.channel4.com/money/feature.jsp?pageParam=1&id=334

Talk about poor research.:rolleyes:

My goodness! :eek: All they needed to add to that was "Pick a card, any card". It's sheer laziness for them to allow such a piece into the public domain - it wouldn't take them 15 minutes to ascertain the facts & provide a far more accurate piece. The words "It ain't pretty" at the end sum up that piece perfectly.