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hurlerontheditch

Insolvencies 'highest for seven years'

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The number of people in England and Wales going insolvent due to unmanageable debt hit a seven-year high in 2018, figures show.

Personal insolvencies totalled 115,299, a 16.2% rise on 2017, the Insolvency Service said.

The rise was driven by the use of Individual Voluntary Arrangements (IVAs), which hit a record level.

IVAs are a way to avoid full-blown bankruptcy and the measure means an individual's main assets are protected.

perfect storm on its way

 

https://www.bbc.co.uk/news/business-47041241

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Very sad on a personal level for those for whom it was unavoidable, but not at all surprising and of course for many another welcome illustration that the tide that caused this whole horrible mess is finally turning. A 16% hike on the previous year is certainly significant, but I bet next year it'll be a lot worse.

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There are a few forced sales locally I am noticing.  The tape over boilers/loos is the give away and I have not seen this for a while.

https://www.rightmove.co.uk/property-for-sale/property-58751649.html

https://www.rightmove.co.uk/property-for-sale/property-69682846.html

So little for sale around here but prices falling lower end and in the "nothing special market'  unfortunately the decent family home zone which I am looking in is still moving but at 350-400 not the 425-450+ asking.

properties priced to sell+nice come and go fast the rest are just sitting.

if I was after a flat or 2 bed I would be able to get a decent price right now I am hoping this is the egg in the snake and my time will come sooner than later.

 

Edited by Fromage Frais

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37 minutes ago, Freki said:

Sad, but yeah. Forced sellers incoming.

great news, so when can i start bidding for their previous marital home. 😄

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1 hour ago, hurlerontheditch said:

IVAs are a way to avoid full-blown bankruptcy and the measure means an individual's main assets are protected

Does this mean they get to keep the house they can't afford...must protect home owners...

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There are no debtor prisons.......debt is now a part of life, the defaults are all factored into the price.....like insurance, like shopping around for a better deal........those with the least pay the most and they still don't pay, they don't pay but are still offered more.😉

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1 hour ago, Wayward said:

Does this mean they get to keep the house they can't afford...must protect home owners...

Omg we need the IVA-HTB scheme now!

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I'm not surprised. I have an RAC membership just in case I breakdown. I receive a couple of junk emails from them each week. Last week one of their emails was offering me a loan of up to.......

 

 

 

.............. £35k. I was gobsmacked. Just before the 2008 financial crash I remember receiving junkmail offering me up to £7k, and I thought that was a bit much then. But £35k? 

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55 minutes ago, winkie said:

There are no debtor prisons.......debt is now a part of life, the defaults are all factored into the price.....like insurance, like shopping around for a better deal........those with the least pay the most and they still don't pay, they don't pay but are still offered more.😉

apart from having a marked credit reference, i really don`t think they are offered more. 😉

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26 minutes ago, Orb said:

I'm not surprised. I have an RAC membership just in case I breakdown. I receive a couple of junk emails from them each week. Last week one of their emails was offering me a loan of up to.......

 

 

 

.............. £35k. I was gobsmacked. Just before the 2008 financial crash I remember receiving junkmail offering me up to £7k, and I thought that was a bit much then. But £35k? 

probably in line with inflation :D

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48 minutes ago, longgone said:

apart from having a marked credit reference, i really don`t think they are offered more. 😉

Yes they are.......at a price, a high price......😉

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5 minutes ago, winkie said:

Yes they are.......at a price, a high price......😉

"those with the least pay the most and they still don't pay"

why lend to those that dont pay 

 

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9 minutes ago, longgone said:

"those with the least pay the most and they still don't pay"

why lend to those that dont pay 

 

Because they are banking on it that enough of them will to make it highly profitable.😉

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6 minutes ago, winkie said:

Because they are banking on it that enough of them will to make it highly profitable.😉

well being offered is different to going through the application then being turned down. 😄

i was offered fun by a lady of the night, but when my wallet turned out to be empty the offer was refused. 

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..... applying at the wrong place, a place where they need your debt more that they need your potential  savings.....😉

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4 hours ago, Freki said:

Sad, but yeah. Forced sellers incoming.

The advantage of an IVA over bankruptcy is that usually you get to keep you house and car although you may be asked to remortgage to pay off some of the debt up front (really just shifting it). IVAs are really only used by people with too much debt and a steady income who are able to demonstrate an ability to make continued payments. 

Maybe they'll sell their houses. Maybe not. But i would have thought that if there was enough money there they would sell up to clear the debts anyway?

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3 hours ago, Captain Kirk said:

+1.

Pushing cheap debt just created more debt junkies. ZIRP and QE are an abomination.

 Agreed. ZIRP makes for zombie companies and debt filled households. 

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3 hours ago, Wayward said:

Does this mean they get to keep the house they can't afford...must protect home owners...

In most cases.... yes. 

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3 minutes ago, adarmo said:

The advantage of an IVA over bankruptcy is that usually you get to keep you house and car although you may be asked to remortgage to pay off some of the debt up front (really just shifting it). IVAs are really only used by people with too much debt and a steady income who are able to demonstrate an ability to make continued payments. 

Maybe they'll sell their houses. Maybe not. But i would have thought that if there was enough money there they would sell up to clear the debts anyway?

Yeah, why would bank accept those losses, especially if the LTV is <100%

Capitalism in the UK would have changed a lot

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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