Going Bankrupt In The Uk

[siamsam]

I recently was having a conversation with a fella, here, in the uk, who confidently claimed that he'd had almost a £100,000 in consumer credit written off the face of the planet, simply by paying a £450 fee, and going bankrupt. He claimed that he'd done this a few times over the years and that after 1 year your credit status returns to a clean slate. Now I'm in my twenties, this guy was almost fifty and he should be setting an example right?? My father always told me you don't get nothing for nothing, so now I've got a bit of conflict here . I own virtually no worldly posessions and I live in rented property. I've read, and heeded the advice of not burning bridges in ones own country etc etc But, what's stopping me running up a bucket load of debt/loans etc and getting my existing credt card debts written off??? This guy advised me to effectivley obtain as much credit as I could, just being high in the red, so long as you keep up the reypayments gives you a high credit score. And to use this high credit score to obtain even more credit and then - go bankrupt. Now I'm trusting the wise posters of this forum to expand................... Thanx guys, siamsam

[wilson steer]

All the facts are cloudy, you can run up a large amount of debt and then default and declare yourself bankrupt. However you become a discharged bankrupt after two years and will remain on the bankrupt register for twelve years.

Repeating the debt situation and becoming a habitual bankrupt is a criminal offence if proven that you did it on purpose.

Certain occupations cannot employ discharged bankrupts and you cannot become an M.P.

Debt is a big problem in the U.K. and leads to many suicides unnecessarily.

I have met many debt-ridden people in the LOS who cannot return to the U.K. for a multitude of reasons.

Wilson Steer.

[OxfordWill]

I might advise approaching this from a different point of view, which if you agree with might make the situation more clear cut.

Is it right of this fella to misuse the 'system' (if this is what is possible) for his own gain? Ultimately, who pays for his selfishness? If he is able to 'get away' with it, who suffers on his behalf?

If everyone did what he claims to have done, how would our society look? Would we be able to afford a NHS? How about the aid being sent to SE Asia, would the government and public be able to afford such donations? Probably not!

To deliberately run up credit and go bankrupt is unethical, and in general will hurt more genuine borrowers whose premiums have to go up to cover the losses credit companies suffer at the hands of those who would do so.

[ProfessorFart]

I've met several blokes over the years in LOS who've done pretty much the same thing. Earned a high credit rating on a fistful of credit cards and then spunked the lot to the limit and headed for Thailand. Oneof them had ripped a 6 figure sum and the others weren't too far behind (if that wasn't just pub BS)

They can't be prosecuted as long as they haven't defrauded any of the credit companies. Fair play to 'em I say but its not the way I'd do it...............

If you are going to go that way then make sure you do it the 'straight' way. If they find one lie on there you're in deep sctuck mate!!

[Flummoxed]

This thread has been done a few months ago and turned into a big argument.

I too have met people, not only in Thailand but in several countries who divorced their Farang wife, sold their share of the house, ran up credit cards as much as they could, took out loans and then belted for the airport never to return.

If it's clear you did it deliberately then you're in big trouble. The bankrupcy laws are there to protect people who have fallen on hard times or had a run of bad luck... not to let fvckers like you off the hook.

Having said that, it is tempting, isn't it... but could you live with the worry?

[siamsam]

Thanx for the replies/advice guys, It was just a thought, I don't actually intend on going bankrupt, and I agree that it is ethically wrong in a none-genuine situation. I always did intend on paying off my debts, it's just that when this guy said what he said I had a few mo's of madness and had a few dark thoughts.

[LaoPo]

There will always be criminal people and decent people.

The world however will only survive with decent people who work hard to make a living, not to cheat on others.

[Harmonica]

Same sort of thing in US; actually the credit related laws are not that dissimilar -- the smarter thing to do is NOT to file for bankruptcy -- just quit the monthly payments. Within 3 months the accounts go to Collection Agencies which, after several attempts at collecting, do the standard "charge-off" and fire off a black mark against your credit with the Credit Bureaus.

Bankruptcy stays on the books for aeons (?) and after several years can actually be a very solid way to re-enter as the general consensus is that it is rare for a person to go the route twice.

A Federal govt. tax or loan lien on your profile however stays FOREVER and there is no way around this.

Therefore, with the best method, as outlined above, after 7 years, your slate is wiped clean and no creditor dare re-send the old derogatory info to the bureaus.

You have a fresh start. The ultimate "forgiveness"

Abuse? Worse than in the UK. Pity.

[Harmonica]

>>>>> There will always be criminal people and decent people.

The world however will only survive with decent people who work hard to make a living, not to cheat on others. <<<<<<<<

Dream on, brother! That's what we wish would be the case, but it appears that the decent people might as well just hand over their paychecks to the "criminals" who run the overall show!

The system stinks -- that is why many just wake up one day and say "&lt;deleted&gt; it!" and exit!