Advertising Bankruptcy??


J

JaffaB

The following item was first posted on the Motley Fool web site, has
been picked up by Sky News, and is now seen in a couple of papers. IS
this not advertising Bankruptcy as the easy way out, with the
'disacharged after a year' claim?

It makes it sound like if you have massive debts and no assets, an easy
way to get out of it is to follow this advice. And if your, say, a
student, why not just take the year off and go around the world.

Im getting a little sick and tired on the stupids getting such an easy
time of it...

Is Bankruptcy So Grim?

Report by Jane Mack

The number of people going bankrupt has risen by nearly 30% over the
last year taking figures to a record high of more than 40,000 personal
bankruptcies a year.

This doesn't surprise me - there's been a remarkable increase in the
number of people choosing bankruptcy on our Dealing with Debt
discussion board over the last year too. And, for the most part,
they've not found it nearly as hard as they'd thought it would be. In
fact, some of the judges and official receivers they've faced have been
surprisingly kind.

Bankruptcy is obviously a last resort and there is still an element of
stigma attached to it which makes people want to avoid it at all costs
not least because those with assets - namely their home - stand to lose
them.

The financial services industry also puts a big black mark against your
name which stays there for several years to come and it will affect
your ability to get a mortgage and credit. You'll also pay higher
interest rates because you'll be seen as a higher risk and it can have
an adverse affect on your job prospects too.

But, for someone with large debts, little or no income and no assets,
bankruptcy can be quite a good option. Indeed it may be the only way
out and, since the rules were changed a couple of years ago, bankrupts
are usually discharged within a year so you get your life back more
quickly these days.

Of course there are mutterings about how the new regime is being abused
by people who want a quick get-out but for the most part people going
into bankruptcy have simply been the victims of unfortunate financial
circumstances. And, judging from the people on our Dealing with Debt
board, the huge relief of having the miserable debt burden lifted far
outweighs any of the restrictions that come with going bankrupt.

Nevertheless, the best solution is still not to get into debt in the
first place or, if you're already in debt, to try your best to get out
of debt before it all goes badly wrong. Bankruptcy may be easier than
it used to be but it's still a very scary prospect.
 
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E

Eric Jones

JaffaB said:
The following item was first posted on the Motley Fool web site, has
been picked up by Sky News, and is now seen in a couple of papers. IS
this not advertising Bankruptcy as the easy way out, with the
'disacharged after a year' claim?

It makes it sound like if you have massive debts and no assets, an easy
way to get out of it is to follow this advice. And if your, say, a
student, why not just take the year off and go around the world.

Im getting a little sick and tired on the stupids getting such an easy
time of it...

Is Bankruptcy So Grim?

Report by Jane Mack

The number of people going bankrupt has risen by nearly 30% over the
last year taking figures to a record high of more than 40,000 personal
bankruptcies a year.

This doesn't surprise me - there's been a remarkable increase in the
number of people choosing bankruptcy on our Dealing with Debt
discussion board over the last year too. And, for the most part,
they've not found it nearly as hard as they'd thought it would be. In
fact, some of the judges and official receivers they've faced have been
surprisingly kind.

Bankruptcy is obviously a last resort and there is still an element of
stigma attached to it which makes people want to avoid it at all costs
not least because those with assets - namely their home - stand to lose
them.

The financial services industry also puts a big black mark against your
name which stays there for several years to come and it will affect
your ability to get a mortgage and credit. You'll also pay higher
interest rates because you'll be seen as a higher risk and it can have
an adverse affect on your job prospects too.

But, for someone with large debts, little or no income and no assets,
bankruptcy can be quite a good option. Indeed it may be the only way
out and, since the rules were changed a couple of years ago, bankrupts
are usually discharged within a year so you get your life back more
quickly these days.

Of course there are mutterings about how the new regime is being abused
by people who want a quick get-out but for the most part people going
into bankruptcy have simply been the victims of unfortunate financial
circumstances. And, judging from the people on our Dealing with Debt
board, the huge relief of having the miserable debt burden lifted far
outweighs any of the restrictions that come with going bankrupt.

Nevertheless, the best solution is still not to get into debt in the
first place or, if you're already in debt, to try your best to get out
of debt before it all goes badly wrong. Bankruptcy may be easier than
it used to be but it's still a very scary prospect.


Just try opening a current account afterwards or apply for a credit card or
loan or mortgage or even a catalogue account.
Eric
 
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P

Poldie

IS this not advertising Bankruptcy as the easy way out, with the
'disacharged after a year' claim? ....
Im getting a little sick and tired on the stupids getting such an easy
time of it...
It sounds like good advice to me. Perhaps you should be petitioning
your MP for a change in the law to the bad old days when you could be
thrown into jail...
 

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