Is Bankruptcy The Answer?

Neil,
The glibness with which you deal with this matter is appalling. choosing bankruptcy doesn't just mean 'anonymous' banks lose out, but suppliers of goods and services as well. Explain, please, why a bankrupt should keep his/her pension when I will have to dig into mine to cover the bad debts of other parties? Or perhaps he can keep his car while I have to sell mine? And what if my firm can't cover those debts? Do you think I should go bankrupt and pass them on to some other poor sod? Do you have no grip in morality? It's utterly irresponsible to go bankrupt, it's bad for other firms and, worse still, allows incompetent people back into business to cause more harm. Is it wrong to go bankrupt? Hell yes!

Nick Horton

Neil
I absolutely agree with Nick. Bankruptcy is a conman's way out of his responsibilities. As manager of a block of flats I have watched young guys run up debts regardless, borrow money from girl friends till they had no more credit, "alter" rooms so they were structurally unsound all in the secure knowledge that "gloing bankrupt" excused them from the consequences. It was the naive girls I felt most sorry for because their futures were blighted. Women tend to be much more responsible in these matters.
The penalties for bankruptcy should be much more severe and lasting.

i have been in an iva for 22 months but due to job change am unable to meet the payments and the payment i can make is in no way sufficient that the creditors will accept it. i wondered if my best option is bankruptcy? and was concerned about the closing of the bank account bit (I just opened a new basic account when I took the iva out)?? anyone have any useful advice. also i work in cabin crew industry and wondered if this profession is affected by the (won't employ you status)........... help

Nick Horton, you have obviously never been in this situation. I am actually quite disgusted with what you have said. I have never been in the situation myself but my sister is going through it at the moment. It has taken her nearly four years to own up to me that she had a problem, that her life savings no longer existed and that she had entered into the most ridiculous IVA agreements that I have ever seen. Maybe if the IVA companies or someone else offered a more realistic solution then people wouldn't have to go bankrupt. This is the last thing that they want to happen, they are faced with losing everything that they have. They may not be able to keep the car or the house, they get essentials, which means that they can keep white goods and the clothes on their backs. I actually feel sorry for these people and maybe its the banks who shoudl be blamed here as there is a case for responsible lending, their solution to my sisters problem was to give her more money!!! How ridiculous is that!!!!

This is an interesting thread, one reflecting either side of the issue.

It is evident that today there is neither the same stigma nor the same personal consequences of bankruptcy that there were 20 years or more ago. It is a much easier option (relatively speaking) than it once was. This has in its own way contributed to the careless accumulation of personal debt in the UK, the consequences of which will become ever more apparent in the coming economic downturn.

Those who through genuine misfortune and circumstances find themselves in this position deserve all the assistance they can get.

There are, however, very many others who treat the experience of bankruptcy with a shrug and, undaunted, move on to find new ways of squandering cash that they don't have. They leave behind many victims.

Barry

Thanks for all your comments, folks. Barry, you said:

"Those who through genuine misfortune and circumstances find themselves in this position deserve all the assistance they can get.

"There are, however, very many others who treat the experience of bankruptcy with a shrug and, undaunted, move on to find new ways of squandering cash that they don't have. They leave behind many victims."

I agree with your first point. I don't with your second. I've seen no evidence that there are 'very many people who treat bankruptcty with a shrug'. Admittedly there are some people that do, and small businesses suffer and close because of it. But the proportion is highly exaggerated. The vast majority of people hate the situation they're in. They're ashamed and scared, and did not want to be there at all.

Actually, most people who borrow gain quite a lot from the banks' willingness to lend irresponsibly. By lending money willy-nilly they make more profits, because they can easily handle an increase to the number of bad debtors. These increased profits mean that they can lower their rates further to attract more business. So, vast numbers of people get cheaper loans as a result.

this is a reply to some off the early post. i don't think that the banks should be blamed at all. If a grown adult is offered something you have rights and it's your choice to accept or decline the offer.

YOU as the responsible adult should take a look at YOUR finances and judge whether you are able to afford the borowings you want to take advantage of.

i have messed up myself my debt is minimal of £3200 (hire car returned-by choice- welcome car finance) thieving buggers and natwest of £1734. i shall clear them in 4 months. I PUT MYSELF IN THIS POSITION NOT the banks.

obvioulsy the banks are there to make money why do people not see it this way. a clothes shop is the same- A BUSINESS, yes financial bit the banks are not doing it for fun.

remember that people

I sympathise with all bankrupts that genuinely had no clue of the consequence of large debt, Nick Horton has his head up his, well you get my drift. I completed an IVA some 15 years ago and am totally solvent now with assets over a million quid and healthy savings.
I have another problem though and I would like advice??
My Dad is 84 and worked all of his life till he was 63, he retired with a nice pension and a lump sum and was never in debt. My mum died before he retired and she also worked hard. He has since remarried a younger model that had had a hard life, she has managed to get them into serious debt with Credit Cards, store cards and any other spending means. Luckily I bought the house a few years ago and they live there on a vastlt reduced rent.
My Dad will not elaborate on the exact amount of debt and keeps telling me that if he had a few quid he could manage the debt, I know this to be untrue. How can I find out what they owe and to whom they owe it? I have approached Debenhams and RBS as I know they are owed a lot.