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Bankruptcies Rise Among Over-45s

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Bankruptcies rise among over-45s

The over-45s are experiencing the biggest rise in bankruptcies as multiple marriages and falling house prices take their toll on people's finances, it was claimed today.

The number of individuals in that age group going bankrupt increased by 124% between 2004 and 2008, rising from 10,600 to 23,800, according to research by accountancy firm Wilkins Kennedy. Over the same period the total number of bankruptcies rose by 89% to 67,500.

The firm, which analysed figures from the Insolvency Service, said an increase in second and even third marriages was a factor. One in five people divorcing in 2007 had a previous marriage ending in divorce compared to just one in 10 in 1980.

Anthony Cork, director of Wilkins Kennedy, said: "By the time people hit 45, many will have established a second or even a third family with additional numbers of children and ex-wives or ex-husbands to support financially.

"This could mean people are having to help pay off part of the mortgage for their ex-husbands' or ex-wives' home, contributing to expensive child care and maintenance costs whilst paying for a second set of school fees and mortgage payments from a new marriage."

Cork added that recent double-digit falls in house prices meant those who had previously turned to their homes for finance in times of crisis were now finding they had less equity or were unable to remortgage.

"The property boom saw a lot of people remortgaging their houses to cash in on the rising value of property, but with the crash many people now haven't got much equity, if any, to rely on if they are made redundant or if their incomes fall.

"The problem may get worse if property prices continue to fall and unemployment continues to rise."

Finally, finally. It's taken a long time for Britain to start looking into the mirror. Every generation is going to be put to the wall over the coming decade. We all knew the generation behind the boomers were in trouble, but imagine them and the next generation not being able to retire, all facing the era austerity. Get ready for the real Brownturn.

Yes, it will mean a flood of property coming onto the market at fire sale prices for years to come, but there will just not be enough money or people to buy them, so the crash is really a moot point.

Scary times ahead.

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Would these be baby boomers, who have taken everything from the poor, poor fabulous youngsters, going to the wall?

Edited by Minos

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A google search and a few more calculations show that over-45s comprise 40% of the population yet account for 65% of bankruptcies.

That is interesting.

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What Minos - no accusations of Gen-Xers and Y-ers spunking money up the wall on drinking binges and flat screen tellys... oh no hang on... :lol: oh dearie me, do as I say not as I do eh?

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What Minos - no accusations of Gen-Xers and Y-ers spunking money up the wall on drinking binges and flat screen tellys... oh no hang on... :lol: oh dearie me, do as I say not as I do eh?

I have no idea what a gen X or Y is. I was commenting on the rabid HPC belief that all boomers have taken everything for themselves leaving nothing for the special people. This article seems to contradict that.

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A google search and a few more calculations show that over-45s comprise 40% of the population yet account for 65% of bankruptcies.

That is interesting.

mmm but maybe you'd expect that as under 18 around 20% population and unlikely to be going bankrupt!!!!

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I have no idea what a gen X or Y is. I was commenting on the rabid HPC belief that all boomers have taken everything for themselves leaving nothing for the special people. This article seems to contradict that.

I don't think anyone has been guilty of saying they are leaving 'nothing' behind, a great stinking mess perhaps, but not nothing.

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Most over 45's are still shelling out to pay for their children that are in their twenties, as the Labour Party have dumbed down both education and work ethics.

The best option is to go bankrupt, and make their offspring stand on their own two feet.

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I don't think anyone has been guilty of saying they are leaving 'nothing' behind, a great stinking mess perhaps, but not nothing.

Don't feel left out. Your generation will get the chance to leave behind its own mess too.

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Don't feel left out. Your generation will get the chance to leave behind its own mess too.

Not so much much our 'own mess' as what is left over from the current mess. Do you think my generation will have had chance to pay it all back by the time we die? Not a hope in hell, my kids are going to have to dig deep too.

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Not so much much our 'own mess' as what is left over from the current mess. Do you think my generation will have had chance to pay it all back by the time we die? Not a hope in hell, my kids are going to have to dig deep too.

So what are you going to do about it? Bitch powerlessly on the internet? Not a good example for your children.

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"The property boom saw a lot of people remortgaging their houses to cash in on the rising value of property, but with the crash many people now haven't got much equity, if any, to rely on if they are made redundant or if their incomes fall.

ocean finance.....?

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mmm but maybe you'd expect that as under 18 around 20% population and unlikely to be going bankrupt!!!!

:huh:

I always prided myself that I had a good instinct for interpreting statistics.

Maybe not.

Yes, it's probably not interesting at all but instead exactly what one should expect.

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Quote from the article (my emphasis):

"This could mean people are having to help pay off part of the mortgage for their ex-husbands' or ex-wives' home, contributing to expensive child care and maintenance costs whilst paying for a second set of school fees and mortgage payments from a new marriage."

That sums up The Guardian. Toynbee and her ilk truly and honestly believe that your average citizen can afford to send their kids to private school. No wonder Labour hasn't got a clue if that's the mindset of its official organ.

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Guest DissipatedYouthIsValuable
Would these be baby boomers, who have taken everything from the poor, poor fabulous youngsters, going to the wall?

That'll be the ones ;)

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A google search and a few more calculations show that over-45s comprise 40% of the population yet account for 65% of bankruptcies.

That is interesting.

It's also the age group most likely to have started a business that's failed/been a pub LL etc. Also terminal/debilitating illness is a disgraceful percentage of people forced into insolvency.

My guess far more would be falling into this, genuine no fault, insolvency category than would be in say the under 40s and under 30s who'll be predominantly credit card/store card/MEW spendthrifts.

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It's also the age group most likely to have started a business that's failed/been a pub LL etc. Also terminal/debilitating illness is a disgraceful percentage of people forced into insolvency.

My guess far more would be falling into this, genuine no fault, insolvency category than would be in say the under 40s and under 30s who'll be predominantly credit card/store card/MEW spendthrifts.

Hmmm I think MEWing requires you to have a mortgage and some equity in the property does it not? That should rule out a hell of a lot of the under 30s.

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Most over 45's are still shelling out to pay for their children that are in their twenties, as the Labour Party have dumbed down both education and work ethics.

The best option is to go bankrupt, and make their offspring stand on their own two feet.

You don't have to go bankrupt to do that, too much help is not very helpful for either party. ;)

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Most over 45's are still shelling out to pay for their children that are in their twenties, as the Labour Party have dumbed down both education and work ethics.

Most people in their twenties, including well brought up ones with a perfectly good work ethic, face a cost of living that their parents never did. Student debt, housing that costs a lot more in real terms now than it did in the '60s or '70s, the end of final salary pensions and declining salaries are but four examples.

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Most people in their twenties, including well brought up ones with a perfectly good work ethic, face a cost of living that their parents never did. Student debt, housing that costs a lot more in real terms now than it did in the '60s or '70s, the end of final salary pensions and declining salaries are but four examples.

Very well put. There are those on here, like a fellow Aberdonian whose name will remain unspoken, that would argue it was irrelevant to those lucky few who sit in high income brackets.

I am not one of those people. Our British 'socialism' was a short lived 20th century experiment, which failed miserably and ended up eliminating the new 'middle' class and put everything back as it was. Lots of poor people, a few lucky and quite evil rich people. Democracy just doesn't work when you run it within the confines of capitalism.

Karma is a bitch.

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Would these be baby boomers, who have taken everything from the poor, poor fabulous youngsters, going to the wall?

NO, don't think so. I understood 'boomers' was born in the years after WW2, now about retirement age!!

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Hmmm I think MEWing requires you to have a mortgage and some equity in the property does it not? That should rule out a hell of a lot of the under 30s.

At the rate some properties where going up, you could have got some serious equity if bought at the right time. If some bought in their early 20's they could have built up equity.

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NO, don't think so. I understood 'boomers' was born in the years after WW2, now about retirement age!!

I'm pretty sure that 45-65 are boomers.

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I'm pretty sure that 45-65 are boomers.

correct I think - there were two humps within this distribution

this mess is indeed reeling in everyone and I have had to draw my claws in over boomers. I still abuse public sector middle management leeches tho!

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