Friday, Feb 02, 2007
There may be trouble ahead......
BBC: Insolvencies rise to new record
The number of people who were declared insolvent in England and Wales rose to a new record of 107,000 last year.
That was a 59% increase on the year before, when 67,500 people went bust.
Posted by sovietuk @ 10:02 AM (150 views) Add Comment
12 Comments
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1. Orwell said...
From the same web site , diary of a debtor :
"...I have decided to put my buy-to-let property on the market. I realise now after several months of trying to negotiate with my creditors, and with the birth of my child due, I need to take drastic action.
I had hoped that the property would be my pension but it looks like I will be back to square one...".
Sorry, although I have sympathy for some people in debt (and used to do wortk at the CAB to help them), I can't find much here.
Firstly you have to earn the money to spend it (or the old adage as Jim Callaghan said "..I tell you with all honesty you cannot spend what yopu do not earn..." Secondly the writer needs to understand that there is only one institution that can guarantee a pension (other than getting into Parliament (40/60 final salary) or better the front bench (lifetime pension even if you lose office)) and that is the state by confiscating property if need be.
2. Orwell said...
From the same site, repossession entry 14 and 15 (I HAVE ADDED SOME COMMENTS IN CAPITALS):
"Mortgage Express, which has the mortgage on the buy-to-let property I have up for sale, has threatened repossession unless I pay back the arrears."
YOU DON'T SAY!
"...I ask what will happen after a month? The man in customer services explains that the account will be handed over to a solicitor to begin repossession proceedings and the charges associated with that will be added to my account.
I say it is highly unlikely that I will find a buyer and complete a sale in four weeks..."
WE'LL BUY IT WON'T WE? BUT JUST NOT FOR THE PRICE YOU PAID FOR IT!
". ah, and can't my arrears just be added to the balance to be cleared when the sale completes? "
WILL THERE BE ANY BALANCE?
"...He tells me that Financial Services Authority regulations say that Mortgage Express can't do that, and so it is not an option.
The only time a repossession action can stop is when contracts are exchanged...."
BEST HURRY UP AND SELL IT THEN FOR WHATEVER IS THE 'MARKET RATE'
Up until then, Mortgage Express can pursue the action.
I start to worry about how this is going to affect the sale of my buy-to-let property.
WELL UHM TO BE POLITE DIDN'T YOU THINK ABOUT THAT BEFORE YOU BOUGHT IT. PERHAPS YOU SHOULD SUE YOUR CUT PRICE CONVEYANCER WHO DID THE CONVEYANCING ?
He also offers me the option to consider simply handing the keys to Mortgage Express. But I can't see how that's going to help me in the long run.
WELL WHEN I WAS WOKING AT THE CAB IN 1994 - 5 , LOADS OF PEOPLE WERE DOING THAT ! ITS ONE WAY OUT.
The process of speaking to the debt departments of my lenders would be so much easier if one person took ownership of a case - a sort of account manager - who I could develop a relationship with.
NOT ANYMORE , AND WHEN THEY ABOLISH THE HIGH STREET SOLICITOR (SEE THE LEGAL SERVICES BILL IN PARLIAMENT AT THE MOMENT ) THE PROBLEM WILL ONLY GET WORSE!
It is so difficult trying to talk to a different person each time I call, and reminding them of my situation and asking them to read the letters that are on file.
NEVER MIND THINGS CAN ONLY GET WOOORRRRSE (AS NEW LABOUR DIDN'T TELL US IN 1997)
3. dohousescrashinthewoods said...
I disagree. The state is dead. They will provide nothing.
The clear message from Gordon's actions, whether by greed, design or sheer, staggering incompetence/arrogance/selfishness is that every citizen must become independently wealthy before ceasing work, or face death by starvation and cold (thank goodness for global warming, state pensioners may survive another year).
Not only does a person only have themselves to rely on for old age, but furthermore, they are expected to subsidise the state! What?! Gordon is so bankrupt that not only can he not pay pensioners enough to live on, they have to pay for his bloated administration to blunder and cover-up its way into unelected government.
RANT-TASTIC!
To conclude, then, there is NO institution that can guarantee a pension. I would not be surprised in the slightest if the state starts confiscating property, but I have no illusions that this would be used to fund incompetent blood-sucking PFI disasters, leaving pensioners with less than before.
(I step off my soap box and go quietly now.)
4. dohousescrashinthewoods said...
(Sorry, Orwell, I should say I'm not ranting at you, just very frustrated with government. They probably could provide pensions, by confiscation or otherwise, but I just don't believe they give a flying monkeys)
5. george monsoon said...
This does not bode well with my situation.
I can't afford a pension... No really I can't, not even a tenner a month.
I can't afford a house either, so I will have nothing with which to bargain my stay in care when I am older..
Only one option,- CRIME. I need to find a way of stealing a little bit of money from everyone on a regular basis without them noticing, that should do it. ..... Oh Damn! the government are already doing that, I will have to look for other unlawful ways to con money out of people. hmm.. there is always banking? Estate Agent? council officer? CSA? mechanic? Plumber? builder?... Solicitor?
6. Objectiveassociate said...
I certainly do agree with Orwell's point about a finding it difficult to sympathise fully with those who spend money that they do not have without expecting there to be consequencies for their actions. My biggest fear is that this is going to get far worse before things change (i.e. mortgages available at 7 x Salary). My opinion is that too many people are falling into the trap of keeping up with the Jones's without understanding that their peers probably can't afford that shiny new bmw in the first place.
7. dohousescrashinthewoods said...
Become a government IT supplier. You can charge 5K to replace a hard drive, do a bad job of it and look forward to your contract being renewed. I think that fits the "criminal" bill ;)
8. george monsoon said...
dohousescrashinthewoods.. Not if you actually work on the support team... the pay is awful.
9. Retired Banker said...
george-
Don't get too depressed, at least you are "getting it away" on a regular basis.
Cheer yourself up, buy a new air-freshener for your car.
10. Orwell said...
litigation lawyers aren't far behind ... I am thinking of pollishing up on my insolvency knowledge... I wonder why? LOL
11. iguana said...
Orwell old son
Insolvency practice is pretty full up with lots of unqualified charlatans getting in on the act, how about the new job creation scheme being set up? Contesting possession and eviction notices - !
12. Orwell said...
Interesting... I think that it would be better to act for creditors though especially now that Legal Aid has effectively been abolished by the Gopher et al... Although you can get it for Housing which includes mortgage repossessions, the way around it is to up the stakes each ime through appealling. This ups the costs and the equity is usually not enough to withstand that.