Bankruptcy

[springbulb81]

When people become bankrupt any money they owe is written off. When the period of bankruptcy ends the law could easily be changed to make them pay back what they owe.

Why is it made so easy for them?

[themas]

Being bankrupt is not easy. For example, if you own a car it will very likely be taken from you. If you own a house you are at serious risk of losing it. Your expenditure is closely investigated & you are quite likely to have to make payments for 3 years. If you get a windfall (inheritance; lottery etc.) it is taken. If you become entitled to a pension the lump sum can be taken. You will normally find it extremely difficult, if not impossible, to get credit again for at least 6 years.

Obviously, in a lot of cases none of these things apply (other than the one about not getting credit) but when they do the money raised in these ways goes to the creditors once the Insolvency Service costs have been paid.

You suggest changing the law so that - having had the debts written off - the debtor is then made liable for them again. What is the point of that? They became bankrupt because they didn't have the financial resources to pay their debts, so why would they be in any better a position a bit later on? The purpose of bankruptcy is to allow people to wipe the slate clean and make a fresh start.

If you think its easy, I suggest you consider in detail how it would affect your own life.

[springbulb81]

Fair enough it must be difficult. But you say becoming bankrupt is about wiping the slate clean? When the person later down the line IS in a financial position to pay debts why shouldn't they still be liable to pay it?

Pardon my cynicism but I was owed money by someone who became bankrupt. Now legally they don't owe it to me but seem to doing ok financially. Is that fair?

There is no scenario where you could argue that this is fair

[sherrardk]

The Official Receiver decides if the person going bankrupt has sufficient income to pay some of the debt off during those six years. Whilst you have every right to be hacked off no one made you give credit to the person who has gone bankrupt, that was a decision you made. Also, in a previous post you mention that you have a CCJ against you, people in glass houses and all that.

[springbulb81]

Yes but I'm paying that CCJ and it's not bankruptcy? And I didn't "give credit" to this person I did some construction work for them and never got paid.

[black_cat51]

for it to be a CCJ, you must have, at some point, failed to pay it