( a mini bankruptcy ) So now you can run up a debt of £15000, apply for a debt relief order and have your debts wiped out. What's the downside ; You will find it hard to borrow money or apply for a mortgage for 6 years. WOW ! Am I wrong in thinking that it seems like a cop-out. If you are in queer street ( financially ) - what incentive have you got to sort yourself out - just dive further into debt - max the plastic - up to £15000 - then just walk away. Who wouldn't ?
I hope that is not true because it would just encourage irresponsible spending and borrowing to match and let's not forget that's what cause this sorry mess we call an economy.
Probably won't make too much difference. Most people have debts far in excess of 15,000, but don't take that option.
It's still probably a last choice for most people. You would struggle to gain employment, as most places do a credit search now, and financial institutions won't hire you if you have been made bankrupt or have IVA's etc. It means you wont be able to get any kind of credit, except maybe payday loans at extortionate rates for 6 years. And rental agreements etc will be off limits as well, unless you are lucky enough to be far enough up the council house waiting list to get one of them.
It's only financial companies that do a credit search on you really, so as long as you avoid them you'd be ok. Not being able to credit is not necessarily a bad thing for some people either, it means you can't get into the same mess again.
Sam before boasting you have no debt, maybe that is because you still live at home with mummy...http://www.not606.com/showthread.php/111635-Leave-my-son-alone Although probably a sensible option financially.
I knew a girl who ran up about £15k in unsecured debts, fecked off on holidays, ran up charges on the credit cards etc and paid the fee to declare herself bankrupt (about £500 I was told). The only down side was that she could't become a director of a company for 6 years. Her point of view was that it was the fault of all of the institutions who gave her loans or credit knowing that she had no property or income to pay back what she'd spent. That is one way to look at it, the other is that it is premeditated theft and if you stole that amount of cash from a bank you'd get 5 years inside. Far too easy to spunk your money up the wall and plead ignorance or poverty once the cash has gone.
How did you come to that conclusion from that thread? The reason I have no debt is that I inherited my house from my elderly great aunt who left it to me in her will. Also, I'm tight as a duck's arse when it comes to money.
we are and will be paying for the last 10 years of the system allowing debt to spiral out of control. It, until 2 years ago, was unbelievably easy to get credit cards, loans, short term loans now, overdrafts, cheques for cash advances. This, alongside the MP's with their hands in the coffers will set us back decades.
It might help in the short term but when personal debt gets to unmanageable levels (which it would) the crash would be astronomical. I think we have proven that it is not sustainable to spend on credit, running up debt and not expecting there to be consequences.
Theres quite a few people that use this, was a bloke in the paper quite a while ago has done it a few times goes out parties buys what he wants cars holidays houses - bankrupt, does it again
As I understand it, it not only debts up to £15k, you must not have any assets over £300. If you own a home, then you cannot take this option, or even a car with a value over £300 makes you ineligble.
Unfortunately individuals and nations have done it for years and now it is just coming home to roost.
