ChatterBank2 mins ago
Bankruptcy - easy option?
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I know of someone who is going bankrupt for the 3rd time. Wiping his debts out again. When others try to pay off what they owe. Does this annoy anyone else?
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It would depend on the circumstances of the bankruptcy. Whilst there are those who treat it as an easy way to get out of debt, sometimes it's just unavoidable. Sometimes it can be an alternative to suicide. Bankrupt does NOT necessarily equal 'cheat', 'bad', 'scrounger' or any other negative description.
We went bankrupt ten years ago. It's no easy option, believe me. For a start, it costs - costs money you can't afford, although the �500 or so it cost us at the time (which we 'borrowed' from my dad) against the six grand we had no hope of paying off (redundancy) was certainly the easier option. Even then the judge tried to talk us out of it.
If you come into money beyond what you need to live on while you're bankrupt, that money has to pay off your bills. Your debt isn't automatically wiped.
Although it's more difficult to get credit, it's not illegal. Just that you'll pay a lot more for it if someone's prepared to lend money to you. The options available to most - credit cards, low interest loans, hire purchase etc., just aren't there.
Bankruptcy in the states probably doesn't count here, but when it happened to us (in the UK) they made it very clear that when this happens for a second or third time, then the official receivers look into your circumstances a lot more and prison starts to become possible.
Of course, unless you're self-petitioning like we did, you don't get too much choice in whether you're declared bankrupt - your creditors can set the wheels in motion if they believe you have insufficient means to pay your debt.
We went bankrupt ten years ago. It's no easy option, believe me. For a start, it costs - costs money you can't afford, although the �500 or so it cost us at the time (which we 'borrowed' from my dad) against the six grand we had no hope of paying off (redundancy) was certainly the easier option. Even then the judge tried to talk us out of it.
If you come into money beyond what you need to live on while you're bankrupt, that money has to pay off your bills. Your debt isn't automatically wiped.
Although it's more difficult to get credit, it's not illegal. Just that you'll pay a lot more for it if someone's prepared to lend money to you. The options available to most - credit cards, low interest loans, hire purchase etc., just aren't there.
Bankruptcy in the states probably doesn't count here, but when it happened to us (in the UK) they made it very clear that when this happens for a second or third time, then the official receivers look into your circumstances a lot more and prison starts to become possible.
Of course, unless you're self-petitioning like we did, you don't get too much choice in whether you're declared bankrupt - your creditors can set the wheels in motion if they believe you have insufficient means to pay your debt.
Oh, you didn't offend me. That's almost impossible! Just that I think people need to know the full circumstances of cases like this.
No, it's not on to deliberately overspend knowing you can go bankrupt, and I know the bankruptcy people are starting to crack down on this. If that's what this person is doing, then he's in for a very rude awakening.
The bankruptcy people are very nice and very helpful, and actually treat you like human beings - as long as you're honest with them - we got a cup of tea and the lot. I can assure you they're quick to suss out anything anyone who's a bit dodgy.
No, it's not on to deliberately overspend knowing you can go bankrupt, and I know the bankruptcy people are starting to crack down on this. If that's what this person is doing, then he's in for a very rude awakening.
The bankruptcy people are very nice and very helpful, and actually treat you like human beings - as long as you're honest with them - we got a cup of tea and the lot. I can assure you they're quick to suss out anything anyone who's a bit dodgy.
Even if you have 'overspent' to a large degree, bankruptcy is an option, but you should not be allowed to o it again.
Saxy - i don't (nor do I wish to) know the circumstances of your case, but I think the point I-say was trying to make is how people are allowed to declre bankruptcy and then get in large amounts of debt again so that they need to bankrupt themselves again.
I'm sure there is no communication between bankruptcy courts in the US and UK, but surely someone who had declared in one country would have some sort of sense not to get themselves into the smae situation elsehere?!!?
Saxy - i don't (nor do I wish to) know the circumstances of your case, but I think the point I-say was trying to make is how people are allowed to declre bankruptcy and then get in large amounts of debt again so that they need to bankrupt themselves again.
I'm sure there is no communication between bankruptcy courts in the US and UK, but surely someone who had declared in one country would have some sort of sense not to get themselves into the smae situation elsehere?!!?
someone whose girlfriend went on a 'comfort spending spree' after her divorce told me that she decided it was a case of 'may as well be hung for a sheep as a lamb' and got into a lot of debt, then declared herself bankrupt. only 12 months later she was apparently inundated with offers from credit card companies and loans who believed (he said) that she would have learned her lesson !!!!!
very annoying if true !!!!!!!!!
My thanks on your comments. Jason, glad you agree with me. I have a small debt (compared to others) which I am paying back to my creditiors over several years. The person I know who has gone bankrupt again, made no offers of paying any money back. Just went for the bankrupt option again. He also can �500 credit. Whereas I, and others like me, cannot, because our credit rating has been affected. In one year his debts will be wiped out. Only for him to start spending again. Gripe over.
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