Bankruptcy?

[jaime bray]

Why not quote my whole post Phil?

 

Rich agrees with me, he knows the full story or as close to it.

 

This is what I refer to, possibly not as clearly as I could or should have, but was my main point in the thread arbtalkers stop picking.

 

Apologies for the derail.

 

5k to some people in a certain situ can seem like a million. Depends what type of financial deals,loans, mortgages etc people have embarked on in their life.

 

At 20year old a loan to buy second hand chipper scared the life out of me, now I'd smile at such figures.

Edited March 23, 2013 by jaime bray

[likeitorlumpit]

Just to bring balance to this thread- everyone consider how you would/ have reacted when people have gone bankrupt on you. Meaning often that you get nowt.

[WorcsWuss]

Just to bring balance to this thread- everyone consider how you would/ have reacted when people have gone bankrupt on you. Meaning often that you get nowt.

 

I agree. Personally I feel that bankruptcy is to be avoided if possible.

There's a lad near here, thick as 2 short planks in that he thinks he's being clever in my opinion, folded up his small steel framed building business 3 times in as many years, no one knows how he's doing it. It's a wonder he's not in a shallow grave somewhere to be honest.

 

You never know what's around the corner, having that on your permanent record is very limiting. Morally, unless it's beyond your control - in that you've been taken for a lot of money or personal circumstances have changed permanently for the worse - I think it's a negative thing to do, particularly if it's jut to get out of paying off some debt.

I have massive borrowings I'd love to get out of, but I made my bed, and so long as I'm physically able to work and service the debt I feel obliged to do so, at whatever cost.

[Andy Collins]

£5k may not seem a lot to some, but I know several who have gone bankrupt for similar figures. I know one person who had he asked need not have lost his £320K house to HMRCE, for £6k!! Jan 2012 I had a £4k tax bill, but I'd lived off my savings and paid all my bills while in hospital, I had no way of earning any money for the foreseeable future, and didn't know when I would even get back to work, if ever. That could have bankrupted me, my saving grace was having sickness insurance, which I then paid off my tax bill. It was a balancing act, and a stress I didn't really need. (I got all the £4k back not long after anyway, but it wasn't any easier at the time)

In a roundabout way, I'm trying to say that what can appear a trifling amount of debt to one, can be the end of the world for another. It's ok when you can afford to keep up with bills, payments and loans, not so easy when the income is no longer matching your needs.

My recollections of a friend on a IVA were that it was a long uphill struggle for something like ten years, had he gone bankrupt, the situation would have eased after a couple of years.

[Jonny69]

If he needs his car. Buy it of him, for £1. Then let him use it. They can't take It once its in YOUR name.

 

Common misconception

 

It sounds like there is finance on the car, if this is the case the V5 and any other proof of ownership you want to fabricate, invoice etc are meaningless.

 

Until the deal is settled the finance company own any asset which there is borrowing on.

 

The worst this can screw you is if you buy a car privately, 2 weeks later repo men turn up and take the car you just bought because it has outstanding finance. There is nothing you can do other than pay the finance (essentially paying twice for the car) or lose it.

 

There is a certain type of car seller this is very common with, not wishing to be called a xenophobe, I will refrain.

[Rich2484]

Well looking at it from my view 5k would cripple me. I don't have anywhere near that amount of money and would probably go bankrupt at the thought of it.

[skyhuck]

If he needs his car. Buy it of him, for £1. Then let him use it. They can't take It once its in YOUR name.

 

Comments like this make me so angry!!!!!!!!!!!!!!!!!!!!!!!!!!

 

Who are THEY???????? The people who trusted him and gave him credit????????

 

Do you not think he should pay whats owed? if he owed you money, would you not want his car sold and your dept Settled? I'm dam sure I would!!!!!!!!!

 

Was it not you who companied about being stabbed in the back in business!!

[rovers90]

Has he not been to see any advisors either at the Citizens Advice Bureau or the Consumer Credit Counselling Service?

[Rich2484]

Steady skyhuck. Deep breath. Not another thread to get closed please.

 

For info, the loan isn't about a car. Just that if the car goes he looses his work that's all. I've done a fair bit of reading over this and you need a good excuse for keeping a car. I.e for work purposes. But if a cheaper car can do the same job then the expensive car goes.

 

Anyway he has booked for cab and awaiting for them to give him some help. I've been looking over my stuff as its got me up a bit. I think in my case bankruptcy would actually be a plus, I don't have assets, I don't have my own home, and nothing to put against the bankruptcy. So I would have to just carry on and work through it as would others I presume. But I think it would be a very steep road to recovery afterwards.

[rovers90]

Rich, I would certainly recommend your friend speaks to Consumer Credit Counselling Service as well. When I worked for one of the high street banks we found customers who went to CCCS for assistance rather than CAB had a better experience and their lenders were happier.