Going Bankrupt

[albaqwerty]

isn't it ironic that you need money to go bankrupt?

seems strange to me. any thoughts?

[Frank97]

And when I did it, they wouldn't take a check, cash only!

[RATTER15]

I would pay by credit card.

[albaqwerty]

lol Frank, I got that message when I first asked :-)

Ratter, don't have a credit card.

It just seems weird that you need to have some funds to 'pay' to go bankrupt, cos if you've got some funds, then they'd be paid towards the creditors.

Ratter, just a query (nosy really) did you put your credit card bill into the bakruptcy funds?

[Frank97]

What I though was strange, was that they didn't ask where the cash had come from, I had to borrow it from my Father. Which now I come to think of it, I didn't list as a debt.

[jennyjoan]

Alba I truly profess not knowing too much about bankruptcy. But surely even if the debtor has to pay "money" their victims never get paid - is that correct.

From what I can see - certain people I know have gone bankrupt - but their lives have continued with having one jeep, one people carrier and a van - both he and she had a holiday in Lanzarote in Jan and off to their caravan for the summer. I can't understand it all. Are their victims paid back by the government etc. JJCon

[Frank97]

You are supposed to have your assets sold, then any money from that goes to the people you owe money to. The Government don't pay anything, unless that has changed since I went under.

[hc4361]

No, the creditors aren't compensated by the government or any other body.
Businesses collapse because their debtors have gone bankrupt but could you imagine the scams going on if the government did pay compensation?

[sandyRoe]

If a limited company goes bust the people who ran it can still keep their home and their cars. The people who are owed money get little or nothing.

[Peter Pedant]

causes great social upheavals.

I paid the fee for someone and they reported a good nights sleep for god knows how long, and being able to turn away creditors.

( £50k neg equity on a house )

[jennyjoan]

very unfair Sandy for those owed. JJCon

[sherrardk]

When we went bankrupt (just over six years ago) we were claiming benefits and the fee was waived. There are charities that assist people with the few, google your situation and bankruptcy and see if you can find anything.

Whilst I felt bad about the people who we were unable to repay I never saw them as victims, we didn't deliberately set out to become bankrupt - it's hardly a barrel of laughs.

[RATTER15]

Alba, sorry. I was joking, we haven't gone bankrupt and never owned a credit card.

[jennyjoan]

I sympathise with you Sherrard and certainly don't want to make you out as a one only. But why would you not sympathise with the victims even if you didn't mean it to happen after all the victims (all others) probably lost 1,000s of pounds with no hope of redeeming. I understand you downsized considerably but what of these others whose lives have gone on pretty good in my estimation. Best of clothes for kiddies, 3 cars, and a caravan. Stumps me all the time. I have googled it and cannot come to any conclusions.

I know Debbie Reynolds (Singing in the rain singer) was left bankrupt by scrounger of husbands but she worked on and paid every single person back. I will leave like that because it probably hits on somebody's raw nerves here.

[Frank97]

Seen that with a chap I know. Not sure how he's managed it, but either him or his firm have gone under twice, yet he still drives a TVR and lives in a large house.

[Graham-W]

I'm sure the car and house belong to his wife/parents/sister/brother/uncle.
Delete as appropriate.

[Frank97]

I've no doubt you're right, which would imply some sort of forward planning before going bankrupt, sneaky buggers!

[jennyjoan]

I suspect you are right - in that there is money there - particularly with the mother living there.

[sherrardk]

You can't tar all bankrupts with the same brush. Yes, some are sneaky but private individuals rarely go bankrupt lightly - it is not an easy option. Apparently millions of ordinary people wouldn't be able to survive just one month without an income.

[albaqwerty]

been and gone and done it :-(