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Realistbear

Bankruptcies Down To 'unsustainable' Lending And New Legislation

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http://www.businessmoneynews.co.uk/ext/bm/...y.jsp?story=982

Bankruptcies down to 'unsustainable' lending and new legislation

08 May 2006

Insolvency industry gives damning report of the Enterprise Act and the credit industry in new survey from Thomas Eggar...
Insolvency professionals are scathing about the conduct of the credit industry
and the impact of recent bankruptcy legislation, according to exclusive survey results released by law firm Thomas Eggar.
The research – conducted amongst 100 insolvency professionals working for a range of firms including KPMG and PWC – revealed that a massive 97% feel credit is too easily available. A further 95% believe that the reduction of the duration of personal bankruptcy has reduced its effectiveness as a deterrent to unsustainable borrowing.
These findings coincide with last week's announcement from the DTI of the latest bankruptcy statistics for the first quarter of 2006. The figures show that in the first quarter of 2006 there were 15,389 bankruptcies. This is an increase of 12.5%on the previous quarter and an increase of 51.2% on the corresponding quarter of the previous year.
Only 13% of insolvency professionals think the Enterprise Act 2002 – designed to provide a fresh start to those who have failed through no fault of their own – has been beneficial to economy.
The Enterprise Act reduced the duration of bankruptcy from three years to one year. However, the number of people being declared bankrupt has risen sharply since the new legislation came into force on 1 April 2004. During 2003, 28,021 bankruptcy orders were made. This rose to 35,898 bankruptcy orders in 2004, while in 2005 the number rocketed to 47,287.
The survey also found that 86% of insolvency professionals also think there should be regulation to prevent lending where the credit available cannot reasonably be repaid from the borrower's income. Lenders should be forced to consider an applicant's ability to repay, before they agree to lend.

To repeat:

"The survey also found that 86% of insolvency professionals also think there should be regulation to prevent lending where the credit available cannot reasonably be repaid from the borrower's income. Lenders should be forced to consider an applicant's ability to repay, before they agree to lend."

Only in Gordo's "Miracle Economy" could such a Mad Hatteresque statement be made. Is Gordon's "Miracle" truly based on a massive pile of debt taken on by millions who have little or no chance of repaying just to keep HPI and MEW fueling the miracle? And this man wants to be our PM. May God truly forbid. :o

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If I recall correctly the Enterprise Act 2004 was the brainchild of Peter Mandelson.

Borrowing large sums of money which "cannot reasonably be repaid from the borrower's income" was his speciality.

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So the massive surge in insolvencies is down to the banks lending 5 figure sums to anyone who can draw breath regardless of their ability to repay the money....

...am I the only one here thinking "no $hit Sherlock"

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...am I the only one here thinking "no $hit Sherlock"

In other news,

Pope may be Catholic Shock Horror!

Bear Craps in Forest Exclusive (to all newspapers)!

Camila Uglier than Diana!

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As they would say in America: No-duh.

The amazing part of it is that they could print that as if it was an intelligent conclusion based on the facts.

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Guest horace

Borrowing large sums of money which "cannot reasonably be repaid from the borrower's income" was his speciality.

LOL :D:D:D

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As they would say in America: No-duh.

The amazing part of it is that they could print that as if it was an intelligent conclusion based on the facts.

Tut tut this was, after all, an "exclusive survey"...

Mind you asking the Insolvency Industry about debt is kinda like asking those who attend Road Traffic Accidents about cars.

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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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