23K 'wiped-off' in 6 months...drastic but quick way to get rid of debt

deemy2004

holidayguru wrote:

Was not wishing to tar all with the same brush. The responses from all, given that this is british law & can be used by anyone have been interesting, to say the least.

My final parting shot is that she had a problem-this solved it in the quickest way.This was on the advice of a free debt councelling service-TAKE IT UP WITH THEM.

Wish I'd not bothered posting now-had this site reccomended to me.

Thanks for your post

Though perhaps the law needs to be changed ?

I.e. people spend £23k on having fun, then walk away from the debt ? Does not sound fair or reasonable at all.. Though off course as you mention it is not deemed to be a criminal act.

kevker

Yes, they may walk away from the debt, but they don't walk away from the bankruptcy. As people have said, it's hard to get a bank account, therefore where do your wages get paid to. You can't get a savings account. You can't get any form of credit. For instance I can't pay my car insurance in installments, because that means getting credit, for which they credit check.

Whilst you are discharged after 1 year now, the bankruptcy follows you for six years. Reading in other posts, after your discharge you still cannot get anything but a basic bank account and you will have no chance of getting any credit. Therefore, if you wanted to buy that new sofa on interest free credit, then you may as well try and climb mount everest.

So yes, I can see that some people would see it as a quick solution, but I don't think anyone could ever see it as easy or desirable.

orthopod

Half the blame lies with the banks who would give more credit for someone on such a low income. It just shows the state of banking in this country. Very competitive and everybody wants to lend. Also the fact that bankruptcy has become an easy option makes some people to splash out on credit cards and drive around on flashy cars and expensive holidays. Add to that, people like OP come on a public forum and encourage others to follow suit. I work hard and pay my bills and repayments and still cannot afford life's luxuries. I am certainly annoyed by this easy bankruptcy option.

jazzyjustlaw

I think its disappointing when people get upset when other dont agree wth their point of view. I would like to say also that it matters not whether debts is personal or business it depends whether it was reckless. I have heard of some business of winding up and letting down customers who have paid for goods only to start up again a short while later and their personal assets were unaffected.

thaylock

holidayguru, don't take it personally ! These are just people views on the action you took, Bankruptcy is a kop out & people shouldn't be recommending this as an acceptable course of action to take if somebody got themselves into debt through frivolous spending. Going bankrupt because your business has failed is a different matter altogether. So tell me, why couldn't your g/f get another job to pay the debt off (even if it meant stacking shelves at tesco).

loobyloo1980

kevker wrote:

Yes, they may walk away from the debt, but they don't walk away from the bankruptcy. As people have said, it's hard to get a bank account, therefore where do your wages get paid to. You can't get a savings account. You can't get any form of credit. For instance I can't pay my car insurance in installments, because that means getting credit, for which they credit check.

Whilst you are discharged after 1 year now, the bankruptcy follows you for six years. Reading in other posts, after your discharge you still cannot get anything but a basic bank account and you will have no chance of getting any credit. Therefore, if you wanted to buy that new sofa on interest free credit, then you may as well try and climb mount everest.

So yes, I can see that some people would see it as a quick solution, but I don't think anyone could ever see it as easy or desirable.

Not to make this personal against you, because you make valid points, but why would someone who had just gone bankrupt WANT to have any more credit. Surely they should be staying well away from credit? My in laws managed to get a basic account easily after bankruptcy, and they can't get into debt with it so surely that is a good thing?

Put it this way, bankruptcy stays on your file for 6 years even though you get discharged earlier than that. I defaulted on a credit agreement when my relationship broke down. That stays on my file for 6 years too, hindering my chance of a mortgage. AND I have to pay it all back. Bankrupts have the same 'sentence' of 6 years hanging over their heads BUT they have walked away from their debt so for those 6 years I spend repaying my default, the bankrupt person next to me has no debt at all hanging over their head and their wages are all their own. Looking at it like that, I would say bankruptcy is an easy way out. However, I do not know about any effects lasting longer than the 6 years it stays on file. But on the face of it both would get the same 6 year sentence but one has to pay and one doesn't.

loobyloo1980

orthopod wrote:

Half the blame lies with the banks who would give more credit for someone on such a low income. It just shows the state of banking in this country. Very competitive and everybody wants to lend. Also the fact that bankruptcy has become an easy option makes some people to splash out on credit cards and drive around on flashy cars and expensive holidays. Add to that, people like OP come on a public forum and encourage others to follow suit. I work hard and pay my bills and repayments and still cannot afford life's luxuries. I am certainly annoyed by this easy bankruptcy option.

I agree banks shouldn't glorify borrowing, but they don't force it in your account - you still have to apply and make that conscious decision.

However I agree entirely with the rest of your post. I would love nothing more than a foreign holiday every year and a nice flash car and a big house, but that will have to wait until I am debt free. In the meantime we will continue to live modestly in our 2 bedroomed terrace with 3 kids in one room as it is the only way we can afford to get out of this mess the honest and responsible way - repaying.

loobyloo1980

thaylock wrote:

holidayguru, don't take it personally ! These are just people views on the action you took, Bankruptcy is a kop out & people shouldn't be recommending this as an acceptable course of action to take if somebody got themselves into debt through frivolous spending. Going bankrupt because your business has failed is a different matter altogether. So tell me, why couldn't your g/f get another job to pay the debt off (even if it meant stacking shelves at tesco).

Because it was "quicker" to take the easy option than actually work harder and cut back and budget like the rest of us mere mortals.

boltonangel

i work for a building society, and currently have a customer that i am trying to help. he was declared bankrupt a few mths ago, and has had to start a new job, the problem is he cannot have his wages paid into anywhere because his bank acc's have been closed by the major banks. as my work allows un discharged bankrupts to open ac's he came to us, however he is struggling for id, as he lives at home with parents,so does not get utility bills etc, obviously no bank stmts,not on voters roll yet,psprt out of date but no point in renewing as wont be going on holiday. this guy is really struggling just to get his wages paid to him.

Luvly.cuppa.T

I have to add my view here, as this has got my goat. Not in the way that everyone seems to be going on, but rather at the fact that you are all going on at OP!!
Face it, this world is full of unfairness- it's just the way it is. WE all have choices, whether they are good or bad, and the OP's OH made a choice that was available to her, alongside choosing to get into debt. That's just the way it is.

I don't speak as a 'credit angel', I have debts that I am paying off from a numerous amount of years ago,(plus student debts, that I have not finished with- so are growing as we speak) and I have low income too with 3 kids. I also have a CCJ (unfair the way it dealt with, but I wasn't that wise then), over a gas bill,(company went bust) yet my next door neighbour in the same position choose not to deal with and got away with the debt. Totally unfair, but heck- that's just the way it is!!

Yes, it does seem that those of us that are honest and do try to sort out our money problems just seem to be stung (hence CCJ!!!) , while those that don't give a damn get away with it.
You still have a choice though, and armed with the knowledge you too could go bankrupt!! I CHOSE not to however , but I would love to know if going bankrupt would wipe these too? (I don't intend to as I want to get to finish my degree starting again(!) next year)

People- it's just the way that life is!!