Another Mse Lamb To The Slaughter

[dances with sheeple]

Can someone explain to me what the phrase "We stopped paying the ppp in July" means? I thought ppp was pre-payment penalty, so what were they paying that they cancelled?

Anyhow, borrowed 75k?! Other than a business, what could they have reasonabley spent that on in a couple of years?

2 x christmas, 2 x new years, entertaining, entertainment, and going abroad a few times? if people catch the idea that they are some kind of "celeb" you could piss that away in no time. I`d say 75k is prudent by some sheeple spending standards over the last few years.

[Ah-so]

They've been existing on 400 pounds a month for the last two years. No Wii's for them.

If she has been surviving on £400 p/m for 2 years (total expenditure £9600). Even if she has also used her loan to make the mortgage payments, she should have loads left over from the £75k. She also does not mention what her husband does for a living.

[leicestersq]

Bankruptcy needs to be changed to ensure as much is reclaimed as possible and they can never have debt again

Nothing wrong with bankruptcy laws IMO, I think reckless lenders need to learn some lessons about carefully assessing credit risks.

[xux42]

What do we want? Everything. When do we want it? Now.

What do we want? Their house.

When do we want it? When their bank has kicked them out and is accepting 70% off peak price.

People say some of us on HPC are preachy and sneer at people.

Well maybe.

Or perhaps the answer is not for us to be more understanding and sympathetic.

Maybe the answer is for people with shit for brains to stop doing stupid stuff.

[Self Employed Youth]

If she has been surviving on £400 p/m for 2 years (total expenditure £9600). Even if she has also used her loan to make the mortgage payments, she should have loads left over from the £75k. She also does not mention what her husband does for a living.

I presume the £400 is the supermarket food bill.

The £75k being used for home decorating, 2 new cars, designer clothes and a luxurious holiday in Spain.

Credit card used to cover pub/restaurants and petrol.

[leicestersq]

That OP got this worrying reply there.

Is bankruptcy this easy? And so light on consequences?? I do hope not! If so what is the point of being sensible?!

.

Tired of Waiting,

Bankruptcy really is this easy. You need something like five hundred quid to pay the courts so you can declare bankruptcy. Then you go before a judge, show him your debts, your assets, and your income. as long as there is no realistic way you can be expected to pay back all the monies with free cash flow left after deducting your living expenses, you can go bankrupt. The official receiver will deal with you then, and take all your assets from you, and any surplus income you may have. then after about 12 months you get discharged. It is longer if the judge thinks you deliberately took on debts that you knew you could not afford to pay, but this is unusual.

The bankruptcy will stay on your credit record for ever I think, though you can repair your credit rating over time.

Seems to me that our banks are taking huge risks lending unsecured to anyone without a lot of equity in their home at the moment.

[Tiger Woods?]

If she has been surviving on £400 p/m for 2 years (total expenditure £9600). Even if she has also used her loan to make the mortgage payments, she should have loads left over from the £75k. She also does not mention what her husband does for a living.

People need to read the MSE post again. It is £400 less, not £400 total. i.e. the wife lost a part time job and hasn't found a new one.

Anyhow, unless there is a small business involved, I suspect they are the sole makers of their own misfortune. £75k is a lot of money for someone to borrow if a loss of £400 per month is a financial crisis.

[brassed off brit]

why do some on here see not having a credit rating as bad? if you cant get credit it is good! living within your means is good! being forced to do so is good!

Oh my god! oh my god! what do you mean I cant have a credit card? Cash!!!!! oh no! other peoples dirty fingers have been on cash!

[leicestersq]

Tired of Waiting,

Bankruptcy really is this easy. You need something like five hundred quid to pay the courts so you can declare bankruptcy. Then you go before a judge, show him your debts, your assets, and your income. as long as there is no realistic way you can be expected to pay back all the monies with free cash flow left after deducting your living expenses, you can go bankrupt. The official receiver will deal with you then, and take all your assets from you, and any surplus income you may have. then after about 12 months you get discharged. It is longer if the judge thinks you deliberately took on debts that you knew you could not afford to pay, but this is unusual.

The bankruptcy will stay on your credit record for ever I think, though you can repair your credit rating over time.

Seems to me that our banks are taking huge risks lending unsecured to anyone without a lot of equity in their home at the moment.

This poster SONIC is the real deal regarding insolvency.

http://boards.fool.co.uk/how-do-you-make-someone-see-sense-12132000.aspx?sort=whole

He is saying that courts are getting tougher on reckless bankrupts. That might be a good thing, but I see lenders are just as much a problem. I mean, just why are they lending so much unsecured to these sorts of people?

[leicestersq]

why do some on here see not having a credit rating as bad? if you cant get credit it is good! living within your means is good! being forced to do so is good!

Oh my god! oh my god! what do you mean I cant have a credit card? Cash!!!!! oh no! other peoples dirty fingers have been on cash!

A bad or non-existent credit rating only matters if you want or need to borrow some money from a recognised lender. Then it can matter a lot. Otherwise, not at all.

[aussieboy]

People need to read the MSE post again. It is £400 less, not £400 total. i.e. the wife lost a part time job and hasn't found a new one.

Anyhow, unless there is a small business involved, I suspect they are the sole makers of their own misfortune. £75k is a lot of money for someone to borrow if a loss of £400 per month is a financial crisis.

Beat me to it.

Seems like no one on this forum reads the comments on the comments let alone the source material before launching off.

[aussieboy]

FFS they took a £75k loan secured against their fricken property. They simply short-circuited the carousel of credit cards and MEWs, at the very least.

You were wrong.

Embrace your wrongness.

[Guest spp]

Visit the excellent bankruptcy forum on this site for more help.

FFS

Edited December 31, 2010 by spp

[GordonBrownSpentMyFuture]

We took out a Firstplus loan back in 2007 (75K loan and £18K ppp)...

However, upon requesting a settlement figure from Firstplus we now have £86K outstanding.

10 years ago you could buy a house for that.

[Oliver Sutton]

10 years ago you could buy a house for that.

Indeed.

I am convinced that a large percentage of the population - even a majority will spend not just everything

they earn but any credit that is extended to them as well.

I know several people who owe over £40,000 on top of a mortgage (some in -ve equity) yet continue to buy

new cars and go on 2-3 week long-haul holidays.

The only way they will cut expenditure is if they simply cannot get hold of any more money.

[(Blizzard)]

why do some on here see not having a credit rating as bad? if you cant get credit it is good! living within your means is good! being forced to do so is good!

Oh my god! oh my god! what do you mean I cant have a credit card? Cash!!!!! oh no! other peoples dirty fingers have been on cash!

People who go bankrupt are exactly the people who will find it extremely difficult to live without credit.

I don't understand why debts ever go away. What happens if I owe you £100k, and then go bankrupt, and then win the lottery?

[SarahBell]

Bankruptcy really is this easy.

You can start applying for credit as soon as it's over. In as little as 9 months in some cases.

You can keep your full sky package too - just tell the man how you live and thats how they let you stay.

No surplus income taken. No suggestions about tightening your belt.

There's tons of advice on how to make the best of it and I wouldn't be surprised to see MSE having a guide on how to get a loan after bankrupcty.

[Timak]

Nothing wrong with bankruptcy laws IMO, I think reckless lenders need to learn some lessons about carefully assessing credit risks.

Agreed.

Until about 20 years ago it was deemed that part of banking was assessing who was worthy of issuing credit to.

If you are going to lend £75k to somone and be able to claim in the region of £40k of profit for taking that risk over the next 20 years then that risk should stay with the lender.

Once the deregulation took place and people were given the "freedom" and "choice" to take on more debt the banks were able to take the profit but pass on the risk which lead to a huge moral hazard. And as we know the bankers have no morals.

[tahoma]

10 years ago you could buy a house for that.

You can buy a half decent one for that now. The bottom has fallen out of the market in some of my target areas.

We spend a lot of time on here whining that the £425K property we have our eye on has 'only' fallen £25K.

[gilf]

Agreed.

Until about 20 years ago it was deemed that part of banking was assessing who was worthy of issuing credit to.

If you are going to lend £75k to somone and be able to claim in the region of £40k of profit for taking that risk over the next 20 years then that risk should stay with the lender.

Once the deregulation took place and people were given the "freedom" and "choice" to take on more debt the banks were able to take the profit but pass on the risk which lead to a huge moral hazard. And as we know the bankers have no morals.

Secured and unsecured debt are not the same thing though in terms of bankruptcy.

The bank has not made a bet on whether the person can service the debt but on whether the property the mortgage is held against is likely to drop in value to cause them problems.

Even then it's less of an issue as in this country at least any short fall between mortgage debt and the sale price of a property is still the responsibility of the lender.

The one key thing with Bankruptcy that people IMO miss-understand is the length of the consequence. The whole 12 months and you are free thing is greatly over played, you are free of the bankruptcy order but in the current climate and for years to come you won't get any credit. A friend of mine went bankrupt 20 years ago and still finds it very difficult to get some forms of credit even now.

[GordonBrownSpentMyFuture]

You can buy a half decent one for that now. The bottom has fallen out of the market in some of my target areas.

We spend a lot of time on here whining that the £425K property we have our eye on has 'only' fallen £25K.

Links please.

[tahoma]

Links please.

I said 'half decent'. I'm not going to post properties that draw hoots of derision from people who couldn't possibly live somewhere close to a council estate.

[Executive Sadman]

People who go bankrupt are exactly the people who will find it extremely difficult to live without credit.

I don't understand why debts ever go away. What happens if I owe you £100k, and then go bankrupt, and then win the lottery?

I remember Martin Lewis saying some of the best savers were the worst spenders. Its like an obsessive compulsive thing. Previously they obsessively shopped, now they obsessively saved. Scary.

[corevalue]

Now there's a complaint that the thread has been hikacked by the "tossers at HPC".

So that's where Sibley went

She doesn't make it very clear where the £75K went apart from buying a car, and they lost a bit because of car problems. To me, a saver, it's a mind-boggling sum, it's 40% deposit on a half-decent house. That's about four years of average income after tax. What were they doing? No mention of a business.

[headrow]

Links please.

http://www.rightmove.co.uk/property-for-sale/property-17145534.html