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Enterprise Act Of April 2004 - Free Money?

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"The Enterprise Act of April 2004 dramatically lessened the impact of bankruptcy. People are now discharged an average of eight months after being declared bankrupt, instead of three years later. "

So, what's the downside to this?

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"The Enterprise Act of April 2004 dramatically lessened the impact of bankruptcy. People are now discharged an average of eight months after being declared bankrupt, instead of three years later. "

So, what's the downside to this?

We will end up paying the bill for everones plasma tv and 4x4??

My hope is that banks will come back to haunt these people. I think they can have you for upto 15 years if they think you are pulling a fast one.

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We will end up paying the bill for everones plasma tv and 4x4??

My hope is that banks will come back to haunt these people. I think they can have you for upto 15 years if they think you are pulling a fast one.

That was what I was wondering, is it possible to go bankrupt twice? Afterwards, is it possible to open a bank a/c, other than a basic credit only a/c? Do credit reference agencies keep past information for an indefinate period of time or is information wiped after 6 years?

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"The Enterprise Act of April 2004 dramatically lessened the impact of bankruptcy. People are now discharged an average of eight months after being declared bankrupt, instead of three years later. "

So, what's the downside to this?

Gordon "Miracle Economy" Brown must have anticipated the rise in bankruptcies when this legislation was being ramped. In a miracle economy bankruptcy ceases to have relevance as you just start all over again. House prices keep going up and no one goes into the kind of debt that has consequences. Brilliant! Gordon "Miracle Econmy" Brown should be nominated for the Nobel Prize in Miracles.

Edited by Realistbear

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We will end up paying the bill for everones plasma tv and 4x4??

My hope is that banks will come back to haunt these people. I think they can have you for upto 15 years if they think you are pulling a fast one.

We already do and the banks are up to their necks in it. Do you think the bank is your friend? Do you think that you and the bank are on the same side? Well reality check, your not! The write down involved in bad debt is calculated into the profit projection, and offset by higher interest rates to both those with a high credit risk and (yourself maybe) with a low credit risk.

Ie. The people they lend to that go bankrupt are paying double the interest for their money and hence have less flexibility to manage it... but then there are all those repossessed wide screen TVs. Actually as I understand it, they are not repossessed. I believe a TV has been included in the poverty index, so you will probably get to keep your widescreen and your big fat 4x4 as long as you don't have another car and your prepared to sell the 18 inch TV in the kids room. They don't tell bankrupts to trade it in for a second hand sedan (which they bloody well should. So if your going to go bankrupt, buy a 4x4 first! ).

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That was what I was wondering, is it possible to go bankrupt twice? Afterwards, is it possible to open a bank a/c, other than a basic credit only a/c? Do credit reference agencies keep past information for an indefinate period of time or is information wiped after 6 years?

It is possible to bankrupt twice however you would be treated differently and probably not discharged for some years after the second time, the information is wiped after 6 years, if you look on any of the debt help forums you will see that the banks are back offering loans, credits card and mortgages to people before they are even discharged.

Once you are declared bankrupt the banks cannot "come back to haunt you" - and no I have never been declared bankrupt I just have this info because of my job

We already do and the banks are up to their necks in it. Do you think the bank is your friend? Do you think that you and the bank are on the same side? Well reality check, your not! The write down involved in bad debt is calculated into the profit projection, and offset by higher interest rates to both those with a high credit risk and (yourself maybe) with a low credit risk.

Ie. The people they lend to that go bankrupt are paying double the interest for their money and hence have less flexibility to manage it... but then there are all those repossessed wide screen TVs. Actually as I understand it, they are not repossessed. I believe a TV has been included in the poverty index, so you will probably get to keep your widescreen and your big fat 4x4 as long as you don't have another car and your prepared to sell the 18 inch TV in the kids room. They don't tell bankrupts to trade it in for a second hand sedan (which they bloody well should. So if your going to go bankrupt, buy a 4x4 first! ).

If it is any consolation there is no way someone would be allowed keep a 4x4 you are allowed to retain a car up to the value of £2,000 IF it is required for your job

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It is possible to bankrupt twice however you would be treated differently and probably not discharged for some years after the second time, the information is wiped after 6 years, if you look on any of the debt help forums you will see that the banks are back offering loans, credits card and mortgages to people before they are even discharged.

Once you are declared bankrupt the banks cannot "come back to haunt you" - and no I have never been declared bankrupt I just have this info because of my job

If it is any consolation there is no way someone would be allowed keep a 4x4 you are allowed to retain a car up to the value of £2,000 IF it is required for your job

Thanks Sparkle, I just hope the new relaxation of the law has not started a new trend.

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Do you think the bank is your friend?

God no, i may be confused but i am not a complete muppet!

The write down involved in bad debt is calculated into the profit projection, and offset by higher interest rates to both those with a high credit risk and (yourself maybe) with a low credit risk.

I am not bothered about that, just by the crappy rate of interest on savings

Just seen this. On the positive side:

2. Bankruptcy duration

The Enterprise Act amendments reduce bankruptcy duration. It used to be the case that a bankrupt would be automatically discharged after two or three years. Now most bankrupts will be discharged after one year. This applies to bankrupts who have entered bankruptcy through no fault of their own and who co-operate with their trustee or the official receiver. The official receiver or trustee in bankruptcy can apply to the court for this one-year period to be suspended until either the end of a specified period or after the fulfilment of a specific condition. The courts will grant such order if bankrupts have failed or are failing to comply with their obligations to co-operate with respect to the administration of their estates.

Bankrupts who have been dishonest or blameworthy will suffer bankruptcy restriction orders (BROs) that can range from two to 15 years and which impose stringent conditions. These conditions include:

* the prevention of obtaining more than £500 credit without disclosing that you are bankrupt;

* being unable to act as a manger, insolvency practitioner, receiver or director; and

* trading under a different name without disclosing that you are bankrupt.

But

Perhaps more significant is the number of bankrupts who can now be discharged in less than one year. This will happen when:

* the official receiver gives notice that the investigation of the bankrupt's affairs has finished; or

* that they do not need to be investigated; and

* no creditors object to the notice within 28 days.

This could mean that a bankrupt is discharged after only three to four months.

http://www.legal500.com/devs/uk/dr/ukdr_020.htm

Edited by iamconfusedagain

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  • 302 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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