Bankruptcy, What a farce.

Discussion in 'General Chat' started by KoThreads, Dec 22, 2006.

  1. KoThreads

    KoThreads
    Well-known Member

    Joined:
    Jan 18, 2005
    Messages:
    3,031
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +190
    Sorry i know this has been mentioned before but i need to vent my anger after having the facts clarrified by a legal friend.

    Firstly let me say i know some cases are different but in the majority of cases these are the facts, and it was told to me yesterday by the court officials that if you don't own your home, don't have savings and don't have any posseson worth 5 k and you owe money pay your £450 quid and go bankrupt.

    I gave a friend of twelve years some moral support yesterday who (along with about 50 others in the court) decided to go bankrupt. He had 47 k of debt and had made no real effort to pay them back, some his paid nothing to for 4 months and told them he was doing it.

    He wrote down his wages vs outgoings for the court, who saw that his outgoings including things like Sky/broardband etc didnt cover his and his wifes income, both work bringing in £2500 a month after tax.

    To my amazement the debt was wiped, he can take no new loans for a year and after 12 months that's it , he can then go back to normal. If companies give him loans more fool them.

    All but one of 11 people before us had the same huge grin, one was in tears because he was refused.

    The clerk of the court said it's like it every day and is costing people like myself who has saved, own my own house and been responsible mlllions every year as companies have to get there money back.

    He came out laughing as the court bent over backwards to help him if he gets threatening letters etc.

    He was saying thats it the rest of his money in the bank is to be blown on Christmas and we nearly came to blows as i said his got away with f****** murder and doesn't seem to care.

    Sorry for the rant, but after having it confirmed this morning my blood is boiling.
     
  2. Praxidike

    Praxidike
    Banned

    Joined:
    Aug 8, 2006
    Messages:
    1,992
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    66
    Location:
    Doncaster
    Ratings:
    +117
    I'm a student, £10,000 in debt (and counting), but plan on paying it back as soon as possible, just because.... well, it's not my money so it needs to go back.

    Maybe we should all get ourselves into debt and not care about paying it back, if there's only a one in 11 chance of having to pay it back.
     
  3. Ultima

    Ultima
    Well-known Member

    Joined:
    Mar 3, 2005
    Messages:
    9,609
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    136
    Ratings:
    +1,113
    and I bet the majority of these people claimed back all their bank charges for the last 6 years;)
     
  4. neilmcl

    neilmcl
    Well-known Member

    Joined:
    Oct 29, 2004
    Messages:
    6,238
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    103
    Location:
    Nottingham
    Ratings:
    +292
    To say that it all goes back to normal after 12 months isn't really accurate. Its true his bankruptcy status is removed much earlier now but the fact will still remain on his credit ratings for year to come, for about 7 years I believe, so in that time he's still going to find it very difficult to get credit cards or any standard loans etc.

    Although, I do agree that it has become far too easy to take this route. Having said that I also think its become far too easy to get debt in the first place.
     
  5. gtcarling

    gtcarling
    Active Member

    Joined:
    Aug 1, 2006
    Messages:
    328
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    21
    Location:
    CRAWLEY
    Ratings:
    +16
    If 47k worth of debt had been wiped i don`t think getting a new loan or c.card would bother me in 6 years. What i would say is why the banks etc allow people on moderate incomes to accumulate such high debt, probably because there making so much money out of all the honest people. Like charging people 30 quid bank charges when its cost them no more than a fiver, now im not stupid enough to think these charges would go down if people were not doing what your friend done. Me personally i don`t feel sorry for the banks or bother me what your friend has done why lend someone money when they can`t afford to pay it back.:suicide:
     
  6. Pat_C

    Pat_C
    Well-known Member

    Joined:
    Jun 9, 2006
    Messages:
    2,827
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    83
    Location:
    Berkshire
    Ratings:
    +219
    I agree that this is very wrong, but would anyone really offer them credit after 12 months have elapsed?

    On the other hand I have no sympathy for card and loan companies who go to considerable lengths to create as much personal debt as possible, with little regard for the consequences to anyone.
     
  7. Mr_Wistles

    Mr_Wistles
    Distinguished Member

    Joined:
    Mar 11, 2004
    Messages:
    12,109
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    166
    Location:
    Essex
    Ratings:
    +3,035
    I agree its the banks fault. I have friends who only earn about 15k a year who have got over 20k worth of credit on cards.
     
  8. Ultima

    Ultima
    Well-known Member

    Joined:
    Mar 3, 2005
    Messages:
    9,609
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    136
    Ratings:
    +1,113
    It's about time people started taking responsibility for their own actions. The banks can't win. If they start being very strict on lending then everyone will moan, same as now with it being too easy to obtain credit.

    What would be an interesting fact would be to know the percentage of people who went bankrupt where it was actually not their own fault. Quite low if I had to hazard a guess.

    Martin
     
  9. Ian J

    Ian J
    Banned

    Joined:
    Aug 6, 2001
    Messages:
    25,639
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    166
    Ratings:
    +4,906
    The Government made it easier for people to renege on their debts a few years ago and whilst the credit blacklist may make some older people think twice, many younger people seem to be taking the view that they will still be under 30 in seven years time so plenty of time to jump on the housing bandwagon then.

    Many people get into debt through circumstances that aren't really their fault like redundancy or ill health but many others live the high life then leave others to pick up the tab afterwards.

    I would like to see a few cases examined in more detail to see if their are grounds for a criminal action for fraud against some of these people as a few high profile cases might bring a stop to this farce.
     
  10. KoThreads

    KoThreads
    Well-known Member

    Joined:
    Jan 18, 2005
    Messages:
    3,031
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +190
    Yes but surely as I said above this is the reason why we are paying higher bank/cc fees? They want their money back and it's the honest ones paying for the price of it all.
     
  11. Ultima

    Ultima
    Well-known Member

    Joined:
    Mar 3, 2005
    Messages:
    9,609
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    136
    Ratings:
    +1,113
    Now that I would like to see.:thumbsup:
     
  12. Mr_Wistles

    Mr_Wistles
    Distinguished Member

    Joined:
    Mar 11, 2004
    Messages:
    12,109
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    166
    Location:
    Essex
    Ratings:
    +3,035
    My bank has never ever raised my fees or interest rates. Who do you bank with?
     
  13. KoThreads

    KoThreads
    Well-known Member

    Joined:
    Jan 18, 2005
    Messages:
    3,031
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +190
    Well Ian I can tell you a part of me would really like to see this, he only got a £10 k loan out two years ago and used it for two holidays, yes two for him and his wife, to the caribbean, he paid off hardly any and it was included yesterday and he must have known when he took it out that with what he owed already there was no way he could pay it back.
     
  14. KoThreads

    KoThreads
    Well-known Member

    Joined:
    Jan 18, 2005
    Messages:
    3,031
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +190
    I bank with Lloyds, his with Nat West. I believe they can freeze his account. The court gave him two banks that he could open an account with to use as they are 'Bankrupt friendly' if it happens i kid you not.
     
  15. Mr_Wistles

    Mr_Wistles
    Distinguished Member

    Joined:
    Mar 11, 2004
    Messages:
    12,109
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    166
    Location:
    Essex
    Ratings:
    +3,035
    ...and they raise your fees? I would definitely change banks, I am with HSBC and if anything my fees are lowering and my savings rates are incresing.
     
  16. KoThreads

    KoThreads
    Well-known Member

    Joined:
    Jan 18, 2005
    Messages:
    3,031
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +190
    No Russell i used it as a general rule as how else will they claw all this money back.
     
  17. Mr_Wistles

    Mr_Wistles
    Distinguished Member

    Joined:
    Mar 11, 2004
    Messages:
    12,109
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    166
    Location:
    Essex
    Ratings:
    +3,035
    Well I cant think of any bank that raises or creates fees to claim back for this.

    All banks are now offering higher rates on savings so it can't be hitting them that hard.
     
  18. Ultima

    Ultima
    Well-known Member

    Joined:
    Mar 3, 2005
    Messages:
    9,609
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    136
    Ratings:
    +1,113
    Banks are in business after all, therefore profit is obviously a huge motive. Other businesses monitor bad debts and take these into account when costing there supplies so why should banks be any different.

    Martin
     
  19. Joe90sDad

    Joe90sDad
    Banned

    Joined:
    Jan 28, 2006
    Messages:
    585
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    28
    Location:
    Location Location
    Ratings:
    +44
    That's down to the base rate increasing. All the other very high interest offers are just scams. You can normally only get the higher rate on the first £250 of your money or similar silliness.

    Ultimately, the rest of us do pay for people with bad debt.

    With ref to the OP's friend, a lot of that 47k will most likely be trumped up from late payment charges and exhorbitant interest rates. But I'm not defending his conduct.
     
  20. KoThreads

    KoThreads
    Well-known Member

    Joined:
    Jan 18, 2005
    Messages:
    3,031
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +190
    So clearly as bad debt increases this will be factored into banks future profit/loss accounts? So as a result fees must increase.
     
  21. johnny70

    johnny70
    Well-known Member

    Joined:
    Jan 1, 2005
    Messages:
    1,989
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    86
    Location:
    Ashford in the Water
    Ratings:
    +321
    You people make me sick, you sit in judgement of people, from nearly all the posts here its quite clear not ONE one you has the faintest idea about bankcruptcy or its effects.

    People go bankcrupt for many reasons, some because they have to, some just to live the high life after racking up huge debts, but i would suggest to all of you that you take a step off the soap box, being a bankrupt does not mean you are dishonest, being bankrupt does not mean higher bank chargers for everyone.

    Wake up people.

    Kind Regards

    JOHNNY
     
  22. zAndy1

    zAndy1
    Distinguished Member

    Joined:
    Nov 26, 2002
    Messages:
    22,880
    Products Owned:
    2
    Products Wanted:
    5
    Trophy Points:
    163
    Ratings:
    +9,345
    Went bankrupt myself in Sept 05, was discharged in February this year, kept my car, managed to keep our house due to my brother buying my share of the equity in it, even kept my plasma TV! In many respects it was a lot easier than I expected and if truth be told easier than it should have been. Having said that I went through hell getting to the point where I decided I had no other choice, I'd been in debt since leaving school and never got out of it. I did spend beyond my means I admit that, having said that the banks/credit card companies seemed to have a bottomless pit of money they were willing to lend me, you get to the point where you can only afford the minimum payment, being out of work for almost a year didn't help, my wife having to give up her well paid job due to ill health also didn't help and in the end I ended up being 70k in debt and with no way out of it but bankruptcy. It will be on my file for 6 years during which time I won't be able to get credit (and frankly wouldn't want to anyway). Living day to day with no access to credit is a real wake up call believe you me, try getting through Xmas without resorting to ever paying for anything with a credit card but cash/debit card only, for many people it's not feasible. Anyway, as has already been said, there's almost always more reasons behind someone going bankrupt than irresponsible spending so don't just tarnish all bankrupts with the same brush please.

    Merry Xmas

    Cheers,
    Andy
     
  23. johnny70

    johnny70
    Well-known Member

    Joined:
    Jan 1, 2005
    Messages:
    1,989
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    86
    Location:
    Ashford in the Water
    Ratings:
    +321
    Well said Andy, my discharge is in Feb so not long to go, then maybe people will treat me like a human being again and not a low life criminal.

    Kind Regards

    JOHNNY
     
  24. KoThreads

    KoThreads
    Well-known Member

    Joined:
    Jan 18, 2005
    Messages:
    3,031
    Products Owned:
    1
    Products Wanted:
    0
    Trophy Points:
    86
    Ratings:
    +190
    Don't get me wrong Johnny70 I'm on no soap box. It's just I was there yesterday and I know how my friend got like this. It was his own fault, his never been out of work and earned ok money, but his lifestyle don't add up, and he still doesn't care.

    I just come off the phone from a credit control clerk girl friend and she said If I knew what it was like out there I'd be even more bitter. In most cases these days she said it really is a good option and she deals with it every day.
     
  25. johnny70

    johnny70
    Well-known Member

    Joined:
    Jan 1, 2005
    Messages:
    1,989
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    86
    Location:
    Ashford in the Water
    Ratings:
    +321
    I know what you mean, some people eh:cool: it's not you there are plenty of people on this forum who have avery low opinion of bankrupt people, maybe they will come from under there rocks and air there views, maybe they will stay well hidden behind there avatar and screenames pretending they too are perfect:rolleyes:

    Merry Christmas (i hate the abb xmas, so lazy!!:lesson: )

    JOHNNY
     
  26. zAndy1

    zAndy1
    Distinguished Member

    Joined:
    Nov 26, 2002
    Messages:
    22,880
    Products Owned:
    2
    Products Wanted:
    5
    Trophy Points:
    163
    Ratings:
    +9,345
    Well in most cases it is a good option, if you were 70k in debt with no way of paying it back it would look like a bloody good option to you too! At the end of the day it's a way to get a new start having hopefully learnt a very big lesson. Sure there's always gonna be the one's that abuse the system and spend a fortune with the intention of going bankrupt and never paying it back but for every one of those I bet there's 10 that have been through misery and depression for months if not years and who simply want a fresh start for themselves and their family. And if the system works correctly anyone that abuses the system should be recognised and get a BRO which means they wouldn't be discharged in 12 months anyway. It's not a get out of jail free card by any stretch of the imagination!
     
  27. johnny70

    johnny70
    Well-known Member

    Joined:
    Jan 1, 2005
    Messages:
    1,989
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    86
    Location:
    Ashford in the Water
    Ratings:
    +321
    People play the system, whichever one it may be everyday, but for some reason, you people want to see bankrupt's and particulary bad, why? bankrupt's alone don't make the banks increase there charges do they? really? banks don't need any help in that respect :eek: :eek:

    Andy is right, people who in the opinion of the Official Reciever have done wrong, WILL be punished, and rightly so:nono:

    Kind Regards

    JOHNNY
     
  28. Sick Boy

    Sick Boy
    Active Member

    Joined:
    Aug 27, 2003
    Messages:
    2,091
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    66
    Location:
    Bristol
    Ratings:
    +138
    Good to see the Bankruptcy supporters have all got their 360's and the like. It's all about whats important after all.

    Don't see how people can blame the banks, they may be being irresponsible, but that's big business. Individuals have got to take responsibilty for themselves too and make the right choices. The examples on this thread don;t really show any of that. In debt from when you left school to when your decalred Bankrupt.:mad:

    Perhaps people shouldn't try to live beyond their means all the time, then when you lose a job, you can make changes to get back on your feet quickly. Houses aside, if you save to buy the other stuff you want before jumping on the credit band wagon, perhaps we would appreciate things more.

    As for christmas, it's the same time every year and we have plenty of time to prepare.

    Merry Christmas

    SB.
     
  29. johnny70

    johnny70
    Well-known Member

    Joined:
    Jan 1, 2005
    Messages:
    1,989
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    86
    Location:
    Ashford in the Water
    Ratings:
    +321

    Yet another case of a soap box boy, my 360 was given a present, and all my games have been bought pre owned, and just so I can get this straight, WHY should we not be allowed to own decent stuff because we are/were bankrupt?

    Just like you to clear that one up please SB:lease:
     
  30. Ian J

    Ian J
    Banned

    Joined:
    Aug 6, 2001
    Messages:
    25,639
    Products Owned:
    0
    Products Wanted:
    0
    Trophy Points:
    166
    Ratings:
    +4,906
    The fact that banks and finance companies are willing to lend money doesn't mean that people have to take it if they can't afford to repay it. I think that people that blame the banks are somewhat shortsighted.

    I think that the Government got it all wrong when the changed the bankruptcy laws as the idea was to take some of the risks away from people setting up in business if they failed and it wasn't supposed to be a get out of jail card for those that wanted to live beyond their means.

    To say that it doesn't affect everyone else is fatuous as bad debts almost automatically mean higher prices.
     

Share This Page

Loading...