Bankruptcy In The Uk

[andy1308]

Sorry - my computer crashed as I was posting.

The basics are that I will be moving to Bangkok in a month and have a large amount of unsecured debt here in the UK. I have been advised to strongly consider bankruptcy but am worried about any affect it might have on my new life in Thailand.

I'd appreciate any advice or observations from anyone who has seen or heard of a similar situation.

Many thanks,

Andy.

[GuestHouse]

One of the biggest mistakes people make when they move to Thailand is to be underfunded, which begs the question:

Where are you getting the funds to support your life in Thailand if you have no means to pay your debts in the UK and are going to declare bankruptcy?

[andy1308]

A good point 'Guesthouse'...

Right now about half my UK salary is going to pay off debts here in the UK. I will be earning less in Thailand, but a pretty good wage by local standards - and that will be more than enough to live on and enable me to plan for my future without looking back, so to speak.

Andy.

[GuestHouse]

The problem I see is two fold.

The oportunities of your new life in Thailand is going to be limited by the income you receive in Thailand, that might be more than a Thai receives but is it going to provide for now and the future (property purchase, family, pensions)?

The other problem may or may not occur, but if you ever need to call on help from home, ie a credit line, it will not be there.

I do not know how you'd go about filing for bankruptcy when you are overseas as being so would indicate you may have undeclared savings/income. I really don't know, but suspect, that your bankruptcy might be difficult under those circumstances.

[andy1308]

Thanks again 'GuestHouse' for your interest and help.

I have fully investigated every aspect of the job I have accepted in Thailand, and I am confident I will have enough money for a comfortable life and for proper financial planning for my future.

For anyone else (UK Nationals) that might be reading this and in a similar situation, you do have to be present in the UK when filing for bankruptcy. It cannot be done from overseas, although the courts have no powers to dictate where you live after the bankruptcy petition has been granted.

My main questions are, I guess, simple ones. Will my financial background in the UK automatically be checked when, for example, I open a bank account in Thailand? Will it also affect my ability to obtain a work permit, even though I have a contact of employment with my Thai company?

Comments are more than welcome.

Andy.

[Prakanong2005]

I have no direct experience with Thailand but I doubt very much whether overseas credit checks are made on UK records in Thailand when opening bank accounts or credit lines in Thailand.

I am OK in the UK but know they did not check anything when I opened bank accounts and credit cards in both Belgium and Luxembourg.

As for WP - I would eat the proverbial hat if there was any adverse effect from Bankruptcy in the UK.

[kudroz]

Will my financial background in the UK automatically be checked when, for example, I open a bank account in Thailand?

Absolutely not. Although, if you intend to take on a mortgage (i.e.) - they might ask you for a copy of your credit bureau from your home country. But even there, you can do it without it.

Will it also affect my ability to obtain a work permit, even though I have a contact of employment with my Thai company?

Absolutely not, no one will know if you are bankrupt or not. And even if they know, this doesn't prevent you from doing anything in Thailand.

[Chang_paarp]

In Oz you have to get permission of your bankrupcy administrator to leave the country. There have been several high profile cases of people doing a runner during the proceedings. (ref Christopher Skase)

When I went through the mill a few years ago I had to declare my passport number. I managed to avoid bankrupcy and can travel.

If you are leaving the country to avoid debt you may find a warrant awaiting your return. This could also jepordise any consular assistance you may need in the future. If you are going to a better paying job or can show you will be better able to repay your debts you MIGHT get permission to go.

I would seek legal advise before leaving as you will be seen as doing a runner and risk incurring the wrath of the authorities. The warrant will prevent work permits and other dealings with the government.

[RAZZELL]

Sorry - my computer crashed as I was posting.

The basics are that I will be moving to Bangkok in a month and have a large amount of unsecured debt here in the UK. I have been advised to strongly consider bankruptcy but am worried about any affect it might have on my new life in Thailand.

I'd appreciate any advice or observations from anyone who has seen or heard of a similar situation.

Many thanks,

Andy.

Just a point...If you have applied for loans etc with the intention of coming to Thailand and not paying them back...You could probably be prosecuted for fraud....

[andy1308]

Hi, and thanks to everyone that has posted - I really do appreciate your comments and thoughts.

I know I could be in trouble if I did get credit with no intention of paying it back, but that's certainly not the case for me. I've done nothing criminally wrong, and whilst I could just 'disappear' I don't want to run the risk of companies here selling the debt to a Thai Collection Firm in the future. I know that happens and, even when the debt originated in the UK, you can be 'chased' under Thai Law where, as I understand it, the penalties are more severe.

If anyone is in the same situation I'd be happy to share any of my forthcoming experiences with them. I am certain I am going to file for bankruptcy here and make things formal before I travel.

Thanks again.

Andy.

[Mobi]

For day to day living in Thailand you do not need any credit cards - pretty much everything here is still cash.

You will have no problems opening a standard "savings" account at any bank on production of your passport, and sometimes proof of residence. The savings account pays little or no interest, but comes with an ATM card which can be used at any bank machine, and can also be used to pay bills and transfer money to other people's accounts. I am sure the bank will not do any credit check- they don't need to, thety're not lending you any money.

I am also sure there will be no check when you appply for your work permit.

You should be fine in all respects.

[moonoi]

Hi, and thanks to everyone that has posted - I really do appreciate your comments and thoughts.

I know I could be in trouble if I did get credit with no intention of paying it back, but that's certainly not the case for me. I've done nothing criminally wrong, and whilst I could just 'disappear' I don't want to run the risk of companies here selling the debt to a Thai Collection Firm in the future. I know that happens and, even when the debt originated in the UK, you can be 'chased' under Thai Law where, as I understand it, the penalties are more severe.

If anyone is in the same situation I'd be happy to share any of my forthcoming experiences with them. I am certain I am going to file for bankruptcy here and make things formal before I travel.

Thanks again.

Andy.

This is incorrect, there is no agreement between Thailand and the UK (or Europe for that matter) for seizure of assets. Also they cannot sell the debt to a Thai Collection agency, they can sell to a UK agency that operates internationally. But again they cannot seize any assets from you in Thailand.

If you were moving to somewhere in europe then yes you could have a problem, but only if you had seizable assets in the other country. Being bankrupt in the UK doesn't cause you a problem in any other european country either.

I know this as a friend of mine went through a bankrupcy just before the new insolvency laws came into effect in 2004 in the UK although he was living in France in the time. In order to declare bankrupcy you don't have to be resident in the UK, but you must be present when you file your petition at the the court.

So for piece of mind if I were you I would declare yourself bankrupt before leaving the UK in order to avoid any difficulies. If it is grant it will clear you of all debt, including any taxes owed to the Inland Revenue.

Just as a point of interest it was the Inland Revenue that caused my friends bankrupcy, they re-evaluated 5 years of expenses and decided they were all taxable and demanded payment.......impossible people to negotiate with, so instead of getting something back they got nothing....

EDIT: Just wanted to add its quite well know in France that students who went to study in the UK and rack up debts there then also declare themselves bankrupt before leaving the UK and returning to France (I know several people who did this!) and it never caused them a problem in the French banking system

Edited May 16, 2006 by moonoi

[Digger]

I think I would be more worried about what the potential employer in Thailand thinks of employing a foreigner who just filed for bankrupcy before leaving the country. If they already know and are ok with it no problem, but if they are not and then find out, you could have some problems - particularly if they just fire you. Then what do you do?

[zzap]

Absolutely!

[Prakanong2005]

I doubt a employer in Bangkok would find out.

[Mobi]

I doubt a employer in Bangkok would find out.

Or care

(unless you are an accountant - which is a restricted job for foreigners anyway)

[Digger]

I doubt a employer in Bangkok would find out.

Or care

(unless you are an accountant - which is a restricted job for foreigners anyway)

If its a Thai company I would agree, they wont give a fig but if its a Multinational they may have a different opinion - the risk of course, is what the OP does if the shit hits the fan whats his plan then? Just looking at covering all the options - incidentally if it was me doing the hiring, I would fire him if I found out - quite simply shows a weakness of character that he is not facing up to his problems and sorting them out like a man. If he is prepared to do this, what else is he prepared to do that could negatively impact his position. If its as good a position as he eludes to, I think people would care.

[dereklev]

Sorry - my computer crashed as I was posting.

The basics are that I will be moving to Bangkok in a month and have a large amount of unsecured debt here in the UK. I have been advised to strongly consider bankruptcy but am worried about any affect it might have on my new life in Thailand.

I'd appreciate any advice or observations from anyone who has seen or heard of a similar situation.

Many thanks,

Andy.

This is becoming a popular option in England now.....

My advice to you is to face up to your debts!

You borrowed the money or ran up your CC bills and now you want to walk away and start a new life here.

Not very trustworthy are you.....

Just my 2 satangs worth

[backflip]

There's a huge problem, and I'm not all surprised that you haven't realized it. You've demonstrated that you are incapable of managing your finances in the UK. What makes you think that you're going to automatically develop financial acumen when you move to Thailand? In the UK, you have the luxury of declaring bankrupcy and walk away from a debt. In Thailand, you might try to scratch your nose, only to find the debt-holder has removed several fingers...

Edited May 17, 2006 by backflip

[simon43]

Having financial problems is not always due to one's own inability to manage your finances. I have previously 'lost' tens of thousands of pounds when companies who owed me money declared themselves insolvent. That caused me major problems!

(FYI, these were major UK companies with good credit ratings...)

Simon

[p_brownstone]

You may also like to consider the possibility that the poor fools who trusted you and gave you Credit in UK may themselves be forced into Bankruptcy by your cavalier attitude to your responsibilities.

Should they too decide to make Bangkok their new home your intended idyll here may be shorter than you expect.

As backflip points out, Debt Recovery is Thailand is often a rather crude process and "collectors" are much more easily - and cheaply - available than in UK.

I would also add that whilst I don't know your personal situation, I don't care a jot. I totally despise people who pile up debt and then run off leaving others to shoulder the loss.

Patrick

[chonabot]

I would also add that whilst I don't know your personal situation, I don't care a jot. I totally despise people who pile up debt and then run off leaving others to shoulder the loss.

Patrick

You appear blissfully unaware of the malpractice used by credit card companies in order to ensnare the person in debt. This is a national/worldwide problem. Why else would laws come into place to protect the consumer.

OP another option is the IVA , a scheme designed by the government, an insolvency advisor works out what you can pay over a 5 year period. The remainder is written off. Thsi way the creditors receive about a third of the debt and your debt is cleared. This has a less stringent effect on your future credit rating, ie it will be bad for 12 months after the IVA is satisfied. You can leave the country as long as the IVA is still being met.

Those who "despise" the hundreds of thousands of people in this situation have little idea of the current borrowing climate in first world countries. People aren't forced to take these loans or cards , but the creditors are slowly being brought to task for ruining borrowers lives.

Bankruptcy is a good way if you have no assets but I believe the IVA will become a more popular choice. In future Credit companies will have to complete a full Credit check and income expenditure check before lending to Peter to pay off Paul.

Hope that's ok with you Patrick.

[p_brownstone]

I would also add that whilst I don't know your personal situation, I don't care a jot. I totally despise people who pile up debt and then run off leaving others to shoulder the loss.

Patrick

You appear blissfully unaware of the malpractice used by credit card companies in order to ensnare the person in debt. This is a national/worldwide problem. Why else would laws come into place to protect the consumer.

OP another option is the IVA , a scheme designed by the government, an insolvency advisor works out what you can pay over a 5 year period. The remainder is written off. Thsi way the creditors receive about a third of the debt and your debt is cleared. This has a less stringent effect on your future credit rating, ie it will be bad for 12 months after the IVA is satisfied. You can leave the country as long as the IVA is still being met.

Those who "despise" the hundreds of thousands of people in this situation have little idea of the current borrowing climate in first world countries. People aren't forced to take these loans or cards , but the creditors are slowly being brought to task for ruining borrowers lives.

Bankruptcy is a good way if you have no assets but I believe the IVA will become a more popular choice. In future Credit companies will have to complete a full Credit check and income expenditure check before lending to Peter to pay off Paul.

Hope that's ok with you Patrick.

You are assuming that the OP’s Debt is Credit card related, rather than my guess that it is business related

So, let’s assume you are correct.

As you say, no one forces people to accept Credit Cards, "Easy Loans" etc. and I certainly agree that there should be some regulation to protect financially inept individuals from being tempted by offers of easy Credit, the long term implications of which they are unable to comprehend.

Unfortunately however in your defence of such individuals you “blissfully” gloss over a very simple fact ......... whatever reduced amount of the debt the “IVA” negotiates for the Debtor, the balance is most certainly NOT “written off” – it is added to the cost others pay for goods; just as major Department Stores allow for a percentage of stock to be lost to shoplifters and increase prices to take account of those losses.

In the final analysis a Bankrupt who flees from his responsibilities is no different to a shoplifter – they both leave honest Customers to face increased pricing.

So, sorry Chonabot, that’s definitely NOT "OK" with me.

Patrick

[chonabot]

duplicate post

Edited May 17, 2006 by chonabot

[chonabot]

Unfortunately however in your defence of such individuals you “blissfully” gloss over a very simple fact ......... whatever reduced amount of the debt the “IVA” negotiates for the Debtor, the balance is most certainly NOT “written off” – it is added to the cost others pay for goods; just as major Department Stores allow for a percentage of stock to be lost to shoplifters and increase prices to take account of those losses.

In the final analysis a Bankrupt who flees from his responsibilities is no different to a shoplifter – they both leave honest Customers to face increased pricing.

So, sorry Chonabot, that’s definitely NOT "OK" with me.

Patrick

Exactly what goods are being sold by the credit cards?

Are you inferring that the unholy interest rates are hiked up because of these IVA/bankruptcy cases?

Surely the high interest rates are the very reason that these cases exist?

I would suggest that a bankrupt or IVA case is not running away from his debts , they are facing up to and dealing with them in a legal way , comparisons with a shoplifter are infantile to say the least.

May I ask how you came to hold such a biased view against this type of debtor?

Edited May 17, 2006 by chonabot

[andy1308]

Hi guys,

I never realised my original post and questions would cause so many comments, but I have read everything and value all your comments - both positive and not so positive.

Firstly, all the debt I have built up is personal and not related to business activities in any way. Much of it relates to debt incurred about four years ago as a result of a marriage break-up. That's not an excuse or a sob story - just fact. I have been paying it off slowly, but my new position in Thailand will mean that my disposable income is much reduced by UK standards. I am not going into any more personal details but I truly believe you should look forward and not back.

I disagree with an earlier comment about my financial accumen (or lack of it) is in any way a reflection of any other part of my character or abilities. Some people are good at some things, some are not so good at others. I am the one to blame for what has happened and all the legal advice I have received is saying I should declare myself bankrupt and put what has happened behind me.

I do understand that the debts have to be paid by someone somewhere along the line, but what can I do? I have been offered an exciting and challenging position in Thailand and I am sure that most people here in my circumstances would be doing exactly the same thing. I know I have done wrong in the past and I am never going to make the same mistakes again.

Andy.

[Mobi]

Hi guys,

I never realised my original post and questions would cause so many comments, but I have read everything and value all your comments - both positive and not so positive.

Firstly, all the debt I have built up is personal and not related to business activities in any way. Much of it relates to debt incurred about four years ago as a result of a marriage break-up. That's not an excuse or a sob story - just fact. I have been paying it off slowly, but my new position in Thailand will mean that my disposable income is much reduced by UK standards. I am not going into any more personal details but I truly believe you should look forward and not back.

I disagree with an earlier comment about my financial accumen (or lack of it) is in any way a reflection of any other part of my character or abilities. Some people are good at some things, some are not so good at others. I am the one to blame for what has happened and all the legal advice I have received is saying I should declare myself bankrupt and put what has happened behind me.

I do understand that the debts have to be paid by someone somewhere along the line, but what can I do? I have been offered an exciting and challenging position in Thailand and I am sure that most people here in my circumstances would be doing exactly the same thing. I know I have done wrong in the past and I am never going to make the same mistakes again.

Andy.

Hi Andy,

I was just about to start writing a new - and final - post on this thread, when your own post came in. It doesn't change what I was going to say - it just re-enforces it.

I have been absolutely gob- smacked by the unpleasant, judgemental, accusatory and just plain outrageous content of some of the posts here. I know there are a few jumped up self righteous moralisng ponces amongst the expat community in Bangkok, but I didn't realise that half of them would be offering you the benefit of their uncharitable prejudices on this thread.

You make a very polite posting, have obviously gone through an extremely distressing time, and ask for help and advice.

And these guys come on here, without any knowledge of your true circumstances and dare to pass outrageous moral judgements. They don't have the slightest idea of the kind of job you will be doing in Thailand - for all we know you might be a rally driver, or a computer software developer, or a factory builder or a creative designer - or God knows what.! There must be thousands of positions that do not involve any kind of financial responsibility, and even if they did, how do these guys know that you've ever been really irreposnsible? They know nothing about you yet they can say "they would never hire you" and imply that you don't deserve a fresh start.

Well Andy, I guess the world is made up of all sorts, and if you have been to Thailand before, you will know there is a lot of good eggs over here as well as a few bad ones.

The very best of luck in your new life in Thailand, I am sure you will make many good friends. I sincerely hope it all works out for you.

Edited May 17, 2006 by Mobi D'Ark

[moonoi]

Unfortunately however in your defence of such individuals you “blissfully” gloss over a very simple fact ......... whatever reduced amount of the debt the “IVA” negotiates for the Debtor, the balance is most certainly NOT “written off” – it is added to the cost others pay for goods; just as major Department Stores allow for a percentage of stock to be lost to shoplifters and increase prices to take account of those losses.

In the final analysis a Bankrupt who flees from his responsibilities is no different to a shoplifter – they both leave honest Customers to face increased pricing.

So, sorry Chonabot, that’s definitely NOT "OK" with me.

Patrick

Exactly what goods are being sold by the credit cards?

Are you inferring that the unholy interest rates are hiked up because of these IVA/bankruptcy cases?

Surely the high interest rates are the very reason that these cases exist?

I would suggest that a bankrupt or IVA case is not running away from his debts , they are facing up to and dealing with them in a legal way , comparisons with a shoplifter are infantile to say the least.

May I ask how you came to hold such a biased view against this type of debtor?

I agree with what you say. It is not always down to finacial mismanagement by the individual.

As I mentioned earlier in this thread, my friend was forced into bankruptcy by the UK Government (Inland Revenue). And certainly not because he didn't "face up to his debts".

Although its easier to declare bankruptcy in the uk now (my friend did it under the old rules), its by no means easy..you have to prove your are insolvent to the court, they will freeze your bank accounts and seize any assets you hold. For anyone suggesting this is an easy way out of debt, then your sadly mistaken. It also leave a permanent bad mark on your credit rating.

If its a Thai company I would agree, they wont give a fig but if its a Multinational they may have a different opinion - the risk of course, is what the OP does if the shit hits the fan whats his plan then? Just looking at covering all the options - incidentally if it was me doing the hiring, I would fire him if I found out - quite simply shows a weakness of character that he is not facing up to his problems and sorting them out like a man. If he is prepared to do this, what else is he prepared to do that could negatively impact his position. If its as good a position as he eludes to, I think people would care

I also disagree with this statement. How does it show a weakness in character? By declaring bankruptcy the individual has faced upto there problems and is choosing the best way to to resolve them. I also believe that unless you work in the Financial Services industry then you are under no obligation to inform your employer that your are insolvent, it is not there business. I certainly would not fire someone (which in the UK you would be unable to do anyway) for not declaring themselves insolvent.

How do you know for instance the the reason for declaring insolvency is because the person lost there job, unable to find another job with a similar rate of pay means that they can no longer meet there payments. They negotiate with the creditors to restructure the debt and come to a new arrangement, but the creditors do not agree? In the past the only option was Bankrupcy although since 2004 there is now the Insolvency Voluntary Agreement (IVA) as a Chonabot mentioned.

Bankruptcy is not an easy way out, and should be thought about long and hard before deciding to go down that route as the effects of it will harm you for many years to come. Also according the the new UK rules you still maybe obiliged to repay some of the outstanding amount to your creditors during the term of the bankruptcy, its also possible for someone to contest a bankrupcy and reverse the decision should it become clear that they were not insolvent as claimed.

There are also many successful businessmen that had companies that failed and became insolvent before they met success. How are they any differant to an individual who due to circumstances outside of there control are unable to meet there debts? When you have exhausted all other avenues to meet your creditors demands and have been unsuccessful then what else are you to do?

However I agree that there are a small minority that use bankruptcy in order deliberately avoid repaying debt. But they are in the minority, unfortunately as with everything the minority get that loudest voice (be that bad press etc etc) don't for one minute think that everyone that declares themselves insolvent is doing so for this reason.

Edited May 17, 2006 by moonoi

[moonoi]

Hi guys,

I never realised my original post and questions would cause so many comments, but I have read everything and value all your comments - both positive and not so positive.

Firstly, all the debt I have built up is personal and not related to business activities in any way. Much of it relates to debt incurred about four years ago as a result of a marriage break-up. That's not an excuse or a sob story - just fact. I have been paying it off slowly, but my new position in Thailand will mean that my disposable income is much reduced by UK standards. I am not going into any more personal details but I truly believe you should look forward and not back.

I disagree with an earlier comment about my financial accumen (or lack of it) is in any way a reflection of any other part of my character or abilities. Some people are good at some things, some are not so good at others. I am the one to blame for what has happened and all the legal advice I have received is saying I should declare myself bankrupt and put what has happened behind me.

I do understand that the debts have to be paid by someone somewhere along the line, but what can I do? I have been offered an exciting and challenging position in Thailand and I am sure that most people here in my circumstances would be doing exactly the same thing. I know I have done wrong in the past and I am never going to make the same mistakes again.

Andy.

Hi Andy,

I was just about to start writing a new - and final - post on this thread, when your own post came in. It doesn't change what I was going to say - it just re-enforces it.

I have been absolutely gob- smacked by the unpleasant, judgemental, accusatory and just plain outrageous content of some of the posts here. I know there are a few jumped up self righteous moralisng ponces amongst the expat community in Bangkok, but I didn't realise that half of them would be offering you the benefit of their uncharitable prejudices on this thread.

You make a very polite posting, have obviously gone through an extremely distressing time, and ask for help and advice.

And these guys come on here, without any knowledge of your true circumstances and dare to pass outrageous moral judgements. They don't have the slightest idea of the kind of job you will be doing in Thailand - for all we know you might be a rally driver, or a computer software developer, or a factory builder or a creative designer - or God knows what.! There must be thousands of positions that do not involve any kind of financial responsibility, and even if they did, how do these guys know that you've ever been really irreposnsible? They know nothing about you yet they can say "they would never hire you" and imply that you don't deserve a fresh start.

Well Andy, I guess the world is made up of all sorts, and if you have been to Thailand before, you will know there is a lot of good eggs over here as well as a few bad ones.

The very best of luck in your new life in Thailand, I am sure you will make many good friends. I sincerely hope it all works out for you.

Hi Mobi

Your quite right in everything your say

Andy

I'd also like to wish you good luck in your new life in Thailand, don't worry about those that don't understand your situation.......quite a lot of people on TV are quite judgemental without knowing the full facts......but that said most are very helpful and good people

[RAZZELL]

Unfortunately however in your defence of such individuals you “blissfully” gloss over a very simple fact ......... whatever reduced amount of the debt the “IVA” negotiates for the Debtor, the balance is most certainly NOT “written off” – it is added to the cost others pay for goods; just as major Department Stores allow for a percentage of stock to be lost to shoplifters and increase prices to take account of those losses.

In the final analysis a Bankrupt who flees from his responsibilities is no different to a shoplifter – they both leave honest Customers to face increased pricing.

So, sorry Chonabot, that’s definitely NOT "OK" with me.

Patrick

Exactly what goods are being sold by the credit cards?

Are you inferring that the unholy interest rates are hiked up because of these IVA/bankruptcy cases?

Surely the high interest rates are the very reason that these cases exist?

I would suggest that a bankrupt or IVA case is not running away from his debts , they are facing up to and dealing with them in a legal way , comparisons with a shoplifter are infantile to say the least.

May I ask how you came to hold such a biased view against this type of debtor?

I agree with what you say. It is not always down to finacial mismanagement by the individual.

As I mentioned earlier in this thread, my friend was forced into bankruptcy by the UK Government (Inland Revenue). And certainly not because he didn't "face up to his debts".

Although its easier to declare bankruptcy in the uk now (my friend did it under the old rules), its by no means easy..you have to prove your are insolvent to the court, they will freeze your bank accounts and seize any assets you hold. For anyone suggesting this is an easy way out of debt, then your sadly mistaken. It also leave a permanent bad mark on your credit rating.

If its a Thai company I would agree, they wont give a fig but if its a Multinational they may have a different opinion - the risk of course, is what the OP does if the shit hits the fan whats his plan then? Just looking at covering all the options - incidentally if it was me doing the hiring, I would fire him if I found out - quite simply shows a weakness of character that he is not facing up to his problems and sorting them out like a man. If he is prepared to do this, what else is he prepared to do that could negatively impact his position. If its as good a position as he eludes to, I think people would care

I also disagree with this statement. How does it show a weakness in character? By declaring bankruptcy the individual has faced upto there problems and is choosing the best way to to resolve them. I also believe that unless you work in the Financial Services industry then you are under no obligation to inform your employer that your are insolvent, it is not there business. I certainly would not fire someone (which in the UK you would be unable to do anyway) for not declaring themselves insolvent.

How do you know for instance the the reason for declaring insolvency is because the person lost there job, unable to find another job with a similar rate of pay means that they can no longer meet there payments. They negotiate with the creditors to restructure the debt and come to a new arrangement, but the creditors do not agree? In the past the only option was Bankrupcy although since 2004 there is now the Insolvency Voluntary Agreement (IVA) as a Chonabot mentioned.

Bankruptcy is not an easy way out, and should be thought about long and hard before deciding to go down that route as the effects of it will harm you for many years to come. Also according the the new UK rules you still maybe obiliged to repay some of the outstanding amount to your creditors during the term of the bankruptcy, its also possible for someone to contest a bankrupcy and reverse the decision should it become clear that they were not insolvent as claimed.

There are also many successful businessmen that had companies that failed and became insolvent before they met success. How are they any differant to an individual who due to circumstances outside of there control are unable to meet there debts? When you have exhausted all other avenues to meet your creditors demands and have been unsuccessful then what else are you to do?

However I agree that there are a small minority that use bankruptcy in order deliberately avoid repaying debt. But they are in the minority, unfortunately as with everything the minority get that loudest voice (be that bad press etc etc) don't for one minute think that everyone that declares themselves insolvent is doing so for this reason.

For example...Grant Bovey...Husband of Anthea Turner. Now a "succesful" property mogul.

Only you truly know your circumstances and problems...Good luck in the future...