Bankruptcy: The Life After!

Discussion in 'Finance, Property, Law' started by SKJOLD, Jan 17, 2008.

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  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?
  2. msr

    msr LE

    I am sure duffdike will have an opinion.

  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. msr

    msr LE

    While the rest of us, who manage our finances responsibly, pay the cost...

  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. 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.


    Edited: Because I can.
  7. 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. 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
  9. There's some useful before, during and after stuff from people who have experienced bankruptcy at debtquestions
  10. 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. 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. 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. 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.