Bankruptcy: The Life After!

#1
A very close friend of mine is facing bankruptcy.
The question this person wants answered most is “How will they begin again".
So how do you start again? How is a bankrupted person viewed for things like Mortgages and other financial things?
Is it as liberating as some websites would have you believe?
Cheers.
SK
 
#2
I am sure duffdike will have an opinion.

msr
 
#3
Bankrupcy is discharged after a year.
It will affect future credit options for quite some time.
Both the poeple I know who have gone bang reckon its the best thing they ever did.
 
#4
jagman said:
Bankrupcy is discharged after a year.
It will affect future credit options for quite some time.
Both the poeple I know who have gone bang reckon its the best thing they ever did.
While the rest of us, who manage our finances responsibly, pay the cost...

msr
 
#5
If they are Forces they should inform their chain of command. Although finances are ones own buisness it is on the premise that you remain solvent.
 
#6
Disco said:
If they are Forces they should inform their chain of command. Although finances are ones own buisness it is on the premise that you remain solvent.
This person is nothing to do with forces.

I’m also searching and reading other forums and thought ARRSE would give a unique and slightly humorous approach on an otherwise fairly macabre subject.

SK

Edited: Because I can.
 
#7
jagman said:
Bankrupcy is discharged after a year.
It will affect future credit options for quite some time.
Both the poeple I know who have gone bang reckon its the best thing they ever did.
Heres a few facts to think about before you do it:

The fact that you are insolvent is published in the public domain for all to see.

Alot of your assets and possessions will need to be sold.

Your credit history will be affected for up to SIX years.

Student loans and court fines are not affected by Bankruptcy and still have to be paid.

A bankruptcy restriction order could be taken against you lasting up to 15 years. Any monies or assets received during that time will go to the Official Receiver.

If you win the lottery or inherit some money this will be paid to the Official receiver.

I have to deal with people that choose bankruptcy and run from their debts every day. I have no sympathy for them. I have only met one genuine case of entitlement, a woman who through the death of her partner had to become insolvent.
 
#8
SKJOLD said:
Disco said:
If they are Forces they should inform their chain of command. Although finances are ones own buisness it is on the premise that you remain solvent.
This person is nothing to do with forces.

I’m also searching and reading other forums and thought ARRSE would give a unique and slightly humorous approach on an otherwise fairly macabre subject.

SK

Edited: Because I can.
Fair enough SK, I wasnt being judgemental but if you wanted humour then post in the NAAFI.

I bet its you really! bought a 56" telly costing more than a mortgage
 
#10
msr said:
jagman said:
Bankrupcy is discharged after a year.
It will affect future credit options for quite some time.
Both the poeple I know who have gone bang reckon its the best thing they ever did.
While the rest of us, who manage our finances responsibly, pay the cost...

msr
MSR, I agree with your point of view

In the few cases I know of, I totally agree. Their bankrupcies were caused by them needing to live a lifestyle they could not afford.

Do I feel any sympathy for them - No, they could do like the rest of us and save up for things they NEED not just what they WANT!
 
#11
romach said:
msr said:
jagman said:
Bankrupcy is discharged after a year.
It will affect future credit options for quite some time.
Both the poeple I know who have gone bang reckon its the best thing they ever did.
While the rest of us, who manage our finances responsibly, pay the cost...

msr
MSR, I agree with your point of view

In the few cases I know of, I totally agree. Their bankrupcies were caused by them needing to live a lifestyle they could not afford.

Do I feel any sympathy for them - No, they could do like the rest of us and save up for things they NEED not just what they WANT!
Whilst your positions on the moral high ground are unimpeachable, you may wish to put aside your rather judgmental views for a moment and consider that not everyone who gets into debt does so because of financial irresponsibility.

There are any number of reasons - breakdown of relationships, long-term illness, redundancy, bereavement, to say nothing of irresponsible lending - all of these can lead to financial problems. How many people with Mirror Group pension funds thought they'd acted sensibly and were well set up for the future? Of course there those who are there because of their own foolishness, but I suspect they are in the minority.
 
#12
ViroBono said:
Whilst your positions on the moral high ground are unimpeachable, you may wish to put aside your rather judgmental views for a moment and consider that not everyone who gets into debt does so because of financial irresponsibility.

There are any number of reasons - breakdown of relationships, long-term illness, redundancy, bereavement, to say nothing of irresponsible lending - all of these can lead to financial problems.
I had interviewed and offered a job to a young guy, only for HR to bounce him on financial vetting. Queried this and a few years ago he had been working for a high street name company, broken himself, then caught some horrible bug and was 4 months before he was fit to return. He had been put on Statutory Sick Pay the first day he didn't turn up.

If I was put on £72.55 a week I'd be impoverished fairly damn quickly - I'd need 3 months each month just to pay the mortgage (selling the house would be the only option and that's unlikely to be quick with the current state of the market). Be honest - that's only 13 hours at minimum wage.

Unfortunately, I didn't have any dirt on the particular HR scrote. Pity, because the lad would have been far better than the oxygen thief I ended up with.
 
#13
Bankruptcy used to be a no-no on the vetting front. Also now that banks have been burnt lending to sub-prime clients people who were late paying a gas bill are finding it hard to get credit - god knows how an ex-bankrupt will get on_
 
#14
msr said:
jagman said:
Bankrupcy is discharged after a year.
It will affect future credit options for quite some time.
Both the poeple I know who have gone bang reckon its the best thing they ever did.
While the rest of us, who manage our finances responsibly, pay the cost...

msr
So pleased your financial life has always gone exactly to plan.
However, for some people life doesn't quite slot into place as easily, not always their own fault either.
As the current financial system works in this country, once you reach a certain point with a debt problem then there aren't many options available, bankrupcy is sometimes the only choice.
The irony is that if you want to declare yourself bankrupt you must pay the courts £500 odd (around that anyway) to do it, obviously they prefer cash :D
 
#15
I was talking about specif cases where they lived way beyond their ability to pay back their debts.

Where people genuinely run up debt just to live / exist then I do feel sympathy for them as thats pretty bad. I also lay a lot of the blame on the financial institutions who made credit available to everyone regardless of their ability to pay it back.

Credit checking staff is a big no no unless it is made clear to all potential staff that they will be credit checked as a final stage before joining an organisation.
I used to work for a high street bank who did this with out advising the person that this would be done as part of the recruitment process, It cost the bank a lot of money to make a court case go away as they were being sued for doing an illegal credit check as the person had not overtly consented to the credit check.
 
#16
msr said:
jagman said:
Bankrupcy is discharged after a year.
It will affect future credit options for quite some time.
Both the poeple I know who have gone bang reckon its the best thing they ever did.
While the rest of us, who manage our finances responsibly, pay the cost...

msr
Well said that man! A while ago I was left in a poor financial state due to a relationship breakdown - i.e left with minus bu**er all and then some. Going Bankrupt was an option but one I refused to take because I sat down re org'ed and lived like a hermit for a while, scrimping and saving and getting back on my feet.

Why should I or anyone else subsidise idiots (with the exception of those poor folks who have been shafted by their pension schemes) who cannot control their finances or who refuse to fight back when life hits them with a sh*tty stich for a while.

N.B - I've learnt a great deal more about money/life by doing the right thing and paying debts than running away.

Rant out
 
#17
Farmboy - I agree with you wholeheartedly.

When I got divorced I had to take responsibility for all out joint debts as my ex-beloved didn't seem to believe in working for a living (and never had) and as a consequence I was at the point of nearly loosing my house.

Went away from that marriage with over £20K in debt. Managed to get organised with the help of the CAB and pay everything off. Even got to stage now where I have got savings !!

Nothing annoys me more than people who can just run away from responsibilities of there own making. It doesn't teach you anything.

Another gripe is that people want to reclaim bank charges, these people knew that the bank charged them when they went overdrawn - it wasn't a surprise to them and because of that I am now facing having to pay for my banking.
 
#18
ceecee said:
Farmboy - I agree with you wholeheartedly.

When I got divorced I had to take responsibility for all out joint debts as my ex-beloved didn't seem to believe in working for a living (and never had) and as a consequence I was at the point of nearly loosing my house.

Went away from that marriage with over £20K in debt. Managed to get organised with the help of the CAB and pay everything off. Even got to stage now where I have got savings !!

Nothing annoys me more than people who can just run away from responsibilities of there own making. It doesn't teach you anything.

Another gripe is that people want to reclaim bank charges, these people knew that the bank charged them when they went overdrawn - it wasn't a surprise to them and because of that I am now facing having to pay for my banking.
Ahem. The focus has now shifted from reclaiming all bank charges to reclaiming unfair charges i.e. where the charges represented a substantial profit stream for the bank in question and did not represent the true cost of, for example being over-drawn for one day.

In my case, I have spent god alone how much time on the phone, my Mrs has made visits to the branch in question and still the bank monkeys can't understand how £1200 + £300 = £1500. According to their logic it works out at £1300. So yes, I'll be having the charges relating to that long-drawn incident back, ta.

And I already pay for my banking - 'free' banking was only ever introduced as a marketing ploy, supported by HMG, to get young 'uns dragged in as customers the second they spat their Mum's tit out because the bank will make a fortune out of you over your working life. Coincidentally, widespread free banking and easily available credit, plus increased 'penalty' charges all tipped up about the same time IIRC.

Incidentally, I'm not serving as an apologist for those who blow their credit limits up the wall with no regard to the consequences - I found myself the worse side of £30k in debt a while back and have pretty much paid the lot off by working my arrse off and spending less.

Back to the topic, as the holder of a Consumer Credit Licence, all I would say is that Bankruptcy is one option, and is not a magic bullet. Go and see the Citizens Advice (it's free), but for god's sake avoid the commercial companies that prey around the edges of the debt industry like leeches and claim magic fixes.
 
#20
ceecee said:
Another gripe is that people want to reclaim bank charges, these people knew that the bank charged them when they went overdrawn - it wasn't a surprise to them and because of that I am now facing having to pay for my banking.
OK I'll give a slight bite on this one, personal example....

10 days till pay day I go £20 over, no standing orders/DDs/POS's/cheques to come off in the days to come, the "admin charge" for this was £300 notes, £30 per day. This is taken off half way through the next month and results in a another spell in the red and a vicious circle which lasted for about 6 months.

Now I accept that the original going into the red was my fault AND accept that I should accept a reasonable cost however £30 per day was not a reasonable reflection of the work involved in firstly informing me that I was O/D, I believe that a letter actually costs between £2 and £3 to produce when staff costs are factored in, and then in maintaining the account.

The banks have to accept that they were nearly extortionate in the way the "reclaimed" these charges and in the vast majority of cases this was not open to negotiation, even when it was pointed out to them that THEY were actually causing their customers to become overdrawn and could with a simple arrangement prevent this, the banks however seen an easy cash cow and decided to milk it for all it was worth. Payback for them is going to be a b1tch.
 

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