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eurows

Bankruptcies Show Sharp Increase

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OMG :o

Nearly 70,000 individuals became insolvent in 2005, the highest annual total since the early 1990s, Department of Trade and Industry (DTI) has said.

There were 20,461 insolvencies in the final quarter of 2005, a rise of 57% on the same period in 2004.

The rise in insolvencies has been blamed on greater personal debt, slow growth and bankruptcy rule changes.

About two-thirds declared themselves bankrupt, the rest took out Individual Voluntary Arrangements (IVAs).

Under IVAs debtors agree to repay a set amount each month in return for the freezing of interest charges.

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OMG :o

Nearly 70,000 individuals became insolvent in 2005, the highest annual total since the early 1990s, Department of Trade and Industry (DTI) has said.

There were 20,461 insolvencies in the final quarter of 2005, a rise of 57% on the same period in 2004.

The rise in insolvencies has been blamed on greater personal debt, slow growth and bankruptcy rule changes.

About two-thirds declared themselves bankrupt, the rest took out Individual Voluntary Arrangements (IVAs).

Under IVAs debtors agree to repay a set amount each month in return for the freezing of interest charges.

That's unbelievable.

One to watch:

http://uk.finance.yahoo.com/q?d=t&p=&q=q&s=dfd&m=L

Edited by karhu

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http://news.bbc.co.uk/1/hi/business/4676636.stm

The rise in IVAs is more likely to mean that more people are finding solutions than that more people are getting into trouble," Malcolm Hurlston, director of debt charity the Consumer Credit Counselling Service, told BBC News.

ah... Nothing to do with mortgage payments going through the roof, rising cost of living, credit on tap etc

Edited by eurows

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I believe this is very serious for us as we again are caught in the cross fire

Low paid people with no assets are getting loads of free credit and blowing it. Then declaring Bankrupt so they never have to pay it back.

The recipients of this free credit are normally people above us - i.e. business owners who already have houses.

It is in effect free money being introduced to the economy which no one really is paying for. The rich get richer and the poor just get a 6 month warning for their 100k debt written off.

I think we are getting screwed again.

Either the lenders need to be punished (they can write off bad debts against tax anyway) or the people going bankrupt need to be penalised a lot more seriously.

This is becoming a f@@king joke!!

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I believe this is very serious for us as we again are caught in the cross fire

Low paid people with no assets are getting loads of free credit and blowing it. Then declaring Bankrupt so they never have to pay it back.

The recipients of this free credit are normally people above us - i.e. business owners who already have houses.

It is in effect free money being introduced to the economy which no one really is paying for. The rich get richer and the poor just get a 6 month warning for their 100k debt written off.

I think we are getting screwed again.

Either the lenders need to be punished (they can write off bad debts against tax anyway) or the people going bankrupt need to be penalised a lot more seriously.

This is becoming a f@@king joke!!

Yep...screw prudence..spend spend spend.

Serious question......

How many people on here...in a moment of madness or just when you are feeling really p1ssed off that joe public is taking the p1ss have ever thought sod it...if you can't beat them join them?

What exactly is stopping everyone racking up a mountain of debt and partying for a couple of years. Then when it all goes wrong..declare yourself bankrupt and leave the country for a while. Come back when it has all returned to noramility (if it ever does) and start over again.

Tempted anyone?

P.S I am not advocating this and wouldn't do it personally but it has certainly crossed my mind that maybe we are the mugs here.

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Bankruptcy is not considered as serious as it used to be.

Unfortunately, we will all pick up the tab.

Thats the thing - ultimately we are all in the same boat and will all face the same consequences as a society.

If debt hurts the economy it ultimately hurts us all.

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I'm considering taking all my money out, going out to buy gold, burying it then racking up a 100K of credit card debt (whilst buying more gold of course) then going bankrupt, can then sell the gold in a few years time.

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I believe this is very serious for us as we again are caught in the cross fire

Low paid people with no assets are getting loads of free credit and blowing it. Then declaring Bankrupt so they never have to pay it back.

The recipients of this free credit are normally people above us - i.e. business owners who already have houses.

It is in effect free money being introduced to the economy which no one really is paying for. The rich get richer and the poor just get a 6 month warning for their 100k debt written off.

I think we are getting screwed again.

Either the lenders need to be punished (they can write off bad debts against tax anyway) or the people going bankrupt need to be penalised a lot more seriously.

This is becoming a f@@king joke!!

It's a disgrace is what it is. Another sign of a society where personal responsibility is on the decline. Hey, maybe we can sue them for screwing up our economy and sue them for the emotional trauma, lost earnings etc. (whatever we can think of, really) caused by them driving house prices out of our reach... :)

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I'm considering taking all my money out, going out to buy gold, burying it then racking up a 100K of credit card debt (whilst buying more gold of course) then going bankrupt, can then sell the gold in a few years time.

if you hide the gold - I reckon that's fraud, but if you buy lottery tickets with the money......? would that be fraudulent or merely reckless?

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if you hide the gold - I reckon that's fraud, but if you buy lottery tickets with the money......? would that be fraudulent or merely reckless?

Its all fraud to me. You're buying a lifestyle and not paying for it - fraud!

If I bought a car on credit and it depreciated - they wouldn't give a toss so why not gold?

Edited by OzzMosiz

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Guest Guy_Montag

Yep...screw prudence..spend spend spend.

Serious question......

How many people on here...in a moment of madness or just when you are feeling really p1ssed off that joe public is taking the p1ss have ever thought sod it...if you can't beat them join them?

What exactly is stopping everyone racking up a mountain of debt and partying for a couple of years. Then when it all goes wrong..declare yourself bankrupt and leave the country for a while. Come back when it has all returned to noramility (if it ever does) and start over again.

Tempted anyone?

P.S I am not advocating this and wouldn't do it personally but it has certainly crossed my mind that maybe we are the mugs here.

I have, I do feel like a mug & I expect that, because I play by the rule book, I will lose out when the shit finally hits the fan.

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I'm not an expert on it, but my understanding of it is roughly:

- If you declare yourself bankrupt all bank accounts are shut down, you might get to keep a basic cashcard

- If you own any assets of appreciable value, including your home and car, they are sold to pay back creditors - you get to keep things like bed linen, food, stuff you need for work, basic essentials.

Bankruptcy is "discharged" within a year (normally). This is quicker than it used to be.

However: if you were complicit in your own bankruptcy - for example, your bank statements show entries for gambling, or you were obviously spending beyond your means in a way which you ought to have known would result in your eventual bankruptcy, you can be placed under a restrictive order for much longer, which means it is longer before you are discharged and can get credit again. (Up to 12 years?)

Even if you are discharged from bankruptcy - so it vanishes from your credit reference file - mortgage lenders can still find out if you have ever been made bankrupt in the past and apply special terms and rates.

If you rent and you own few assets (like a cheap car) then bankruptcy can be an 'easy option' provided you don't want a mortgage any time in the near future.

If you're a homeowner (more accurately, if you have a mortgage) then it's nowere near that easy.

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From what ive read over on the debt free board, Your more likely to be left off after 6 months. The OR doesnt really give a stuff as he has hundreds of people coming through his door every day and they neither have the time nor the resources to deal with.

I often think about joining them!!

Especially when im scrimping and saving and they are out buying champagne in nice cars and then declare bankrupt and are often right back where I am except they have had a wicked time and now have to pay an extra percent on their credit cards. WHOPPEE DOOPPEE DOOOO!

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Guest Charlie The Tramp

The Official Guide To Bankrutcy

If, during his/her enquiries into your affairs, the Official Receiver decides that you have been

dishonest either before or during the bankruptcy or that you are otherwise to blame for your

position, he/she may apply to the court for a bankruptcy restrictions order. The court may make

an order against you for between 2 and 15 years and this order will mean that you continue to be

subject to the restrictions of bankruptcy which are described in section 8 above. You may give a

bankruptcy restrictions undertaking which will have the same effect as an order, but will mean

that the matter does not go to court.

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The more this escalates the more that banks are going to increase interest rates and tighten their credit policies.

This will have the effect of pushing more people into bankruptcy. I have a feeling that this is going to take a while to play itself out, and its not going to be pretty.

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Come on Charlie - i know whats written but how often is it used.

All bankruptcies ive seen are discharged in 6 months - every single one - no matter if spent on a lavish lifestyle, gambling etc...

They just dont have the people and resources to curb this.

I expect that if they put up the discharge to 3 years like it was before then this would stop people taking out such stupid credit levels!!

Its all f''king simple except Gordon Brown wants this as this free credit is the only thing keeping the economy above water.

The banks dont really care as they are still making loads of money too.

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Would that include investing in a BTL?? :)

I'd have thought so if it was one of those "off plan, deposit on credit cards" type of scenarios, with an intention to flip, simply because you reasonably ought to have known that you were buying something you could never have afforded in the first place.

In the face of rampant HPI the risk seemed minimal enough to simply ignore: In this event, the family home would (I presume) be sold if needed to pay the developers, who now want the balance of payment for the shoebox?

If it's a case of extreme leveraging causing the downfall as the market turns and circumstances change, then I wonder how the rulings work?

Interesting times ahead particularly if the BTL "portfolio" was not, er, declared as such. Perhaps the tax inspector might be interested as well. (Labour seem to be on to that one now)

If it is a bonafide business (Ltd company) of which you are a Director, there are rules surrounding trading (taking rent payments or getting contractors in?) when you knew or reasonably ought to have known you were insolvent which can ultimately result in you being sent to prison.

However I'd guess that very few BTLs are set up in the context of a limited company with a director. Does anyone know more? Is a private landlord effectively a "Sole Trader?"

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Its all fraud to me. You're buying a lifestyle and not paying for it - fraud!

If I bought a car on credit and it depreciated - they wouldn't give a toss so why not gold?

of course it is, but people are getting away with it... legally.

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  • 301 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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