The Profligate Spending Clause In Bankruptcy Proceedings

[Tonkers]

I was wondering what the judge would consider profligate spending. A lavish lifestyle of course, funded by credit, but what about liar loans and excessive acquisition of buy to lets?

The rule states the judge can then lengthen the term of the bankrupt, up to 15 years I think, but does it have implications for the amount of money that is paid back by the bankrupt?

Edited March 1, 2009 by Tonkers

[FTB_73]

You need to speak to an expert about this, try debtquestions.co.uk and click on the 'ask the expert' section, the person there is named Simon and he can answer any questions you have in relation to this and/or point you in the right direction.

[cashinmattress]

I don't know, but I would love to see these credit junkies have their bankruptcy hearings televised. Even better, get Judge Judy to preside.

A bit of hard love in the courts, and public humiliation, would be just the medicine the UK needs to get out of this mess.

[SNACR]

I don't know, but I would love to see these credit junkies have their bankruptcy hearings televised. Even better, get Judge Judy to preside.

A bit of hard love in the courts, and public humiliation, would be just the medicine the UK needs to get out of this mess.

I'm not sure it'd actually be that good for the economy. What I think you mean is it'll make us who didn't have holidays and TVs on debt feel less like mugs.

Edited March 1, 2009 by Soon Not a Chain Retailer

[Tonkers]

I don't know, but I would love to see these credit junkies have their bankruptcy hearings televised. Even better, get Judge Judy to preside.

A bit of hard love in the courts, and public humiliation, would be just the medicine the UK needs to get out of this mess.

I think it is perhaps seen as an easy option, I am not so sure that it is. Should trawl MSE for stories to see how it works out for people. Just intrigued..

[debt monkey]

I was wondering what the judge would consider profligate spending. A lavish lifestyle of course, funded by credit, but what about liar loans and excessive acquisition of buy to lets?

The rule states the judge can then lengthen the term of the bankrupt, up to 15 years I think, but does it have implications for the amount of money that is paid back by the bankrupt?

The possible penalties are a Bankruptcy Restriction Order or Undertaking. These dont have any implications on how much is paid back.

The judge that makes the bankruptcy orders dont look at these sort of things. It is generally done by the Official Receiver. Unfortunately the Official Receivers are very busy at the moment so only the worst cases are purused. I have seen BRU's for taking out loans which the debtor has no possibility to repay but never for liar loans or BTL's. It would be up to the creditor to highlight to the OR that they had lied on the credit application, and creditors would very rarely bring it to the OR's attention. If they did, the OR would be able to do a BRO/U quite easily.

[SNACR]

The possible penalties are a Bankruptcy Restriction Order or Undertaking. These dont have any implications on how much is paid back.

The judge that makes the bankruptcy orders dont look at these sort of things. It is generally done by the Official Receiver. Unfortunately the Official Receivers are very busy at the moment so only the worst cases are purused. I have seen BRU's for taking out loans which the debtor has no possibility to repay but never for liar loans or BTL's. It would be up to the creditor to highlight to the OR that they had lied on the credit application, and creditors would very rarely bring it to the OR's attention. If they did, the OR would be able to do a BRO/U quite easily.

I saw on the Daily Mail site that Kerry Katona's Porsche was repo'd for not keeping up payments. Out of interest what's the deal there, surely the car was in someone else's name she wouldn't have been able to keep it post-bankruptcy would she?

[CviewUK]

Information on Bankruptcy

http://www.insolvency.gov.uk/