Something for HMG to be proud of.

[pipme]

Personal Insolvencies ...... This bodes well, for us all !

"Debt is the slavery of the free" (Publilius Syrus, 42 BC)

And more disturbingly .. He stated, "A small debt produces a debtor; a large one, an enemy."

More than a thousand people are declaring themselves insolvent every week, and that's just in England and Wales!
Progressively more young women are choosing bankruptcy as a way out of their debt problems. Bankruptcy among women rose by 45% between 2001/02 and 2003/04

 

[WoodYouLike]

That's mostly due to the changing of the bankcruptcy rules, it has been made much, much, much more easier to do that.
Don't be fooled by the increase as if everybody is now more in trouble then before, if you report something you should report all the facts (and not only the figures )

 

[pipme]

Sorry Woody the 'report' is not incorrect.

If Insolvency increases due to lack of credit control, legislation, common sense, or because of a full moon - who is to blame apart from the debtor and, as far as I can see, HMG, who must also also bear a fair proportion of blame?

Don't be fooled by the increase as if everybody is now more in trouble then before

I would have thought bankruptcy was trouble, however one wraps it up, although I did not actually say that.

The Enterprise Act 2002 provisions on corporate insolvency and the abolition of Crown preference will come into force on 15 September 2003. The individual insolvency provisions and those reforming the Insolvency Service's financial regime will come into force on 1 April 2004.

I expect there was some retrospective functionality built in.. and this probably did have a bearing on the sudden increase in insolvency from 2002, whatever, it is not data to be proud of IMHO.
I guess the debtors becoming insolvent must have good reason ... I think that is required .. hence trouble.

 

[matz]

The sharp rise in personal insovencies has to have everything to do with the change in the insovency law. The law as it stands now and how it was before it changed is like the difference between black and white.

 

[pipme]

has to have everything to do with the change in the insovency law

Be that as it may --- Same answer, the reported figures are not wrong and the cynical post heading stands ...

Something for HMG to be proud of

.

It is said "The age at which people get into uncontrollable debt is decreasing." That, I believe, bodes ill for the future.

 

[AdamW]

So, what exactly happens when you declare yourself bankrupt? Do they just write debts off or do they liquidate your assets and scramble to reclaim their losses? Does it mean you aren't allowed loans ever again? Is it possible to get a mortgage if you are bankrupt?

 

[pipme]

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

http://www.insolvency.gov.uk/information/faq/eactfaq.htm

 

[kendor]

Insolvency and property repossession are not the exclusive domain of the labour government the tories were in when some of the worst cases of the above were reported.

 

[2scoops0406]

More worringly, it the level of debt that people are declaring themselves bankrupt at. My mum used to work for CAB, when she started, the level of debt that people were declaring themselves bankrupt at was around 5 - 10k, that figure has now soared to 20 - 30k in debt.

I'm not sure where I stand on the culpabiliity of it all though, irresponsible banks making bad loans, or greedy, live for the moment people who behave irresponsibly ?

 

[kendor]

More worringly, it the level of debt that people are declaring themselves bankrupt at. My mum used to work for CAB, when she started, the level of debt that people were declaring themselves bankrupt at was around 5 - 10k, that figure has now soared to 20 - 30k in debt.

that could be because the perceived "in trouble" level is in relation to wages and 5K isn't insurmountable a mountain of debt it once was perceived as.

 

[petewood]

I'm not sure where I stand on the culpabiliity of it all though, irresponsible banks making bad loans, or greedy, live for the moment people who behave irresponsibly ?

I'm sure it's a combination of both. Some people obviously need to be educated about the risks that come with debt. I don't know if this is now covered at school but it surely should be.

The credit card companies should take some of the blame for their hard-sell advertising and targetting of people who are already in debt. I heard of a company which targets customers who are considered too high risk for other companies and they charge extra-high interest rates to compensate for the extra risk of their customers!

I was at a concert at a Sheffield Arena last month and an attractive girl, all teeth and smiles, asked me if I would like to sign for a free card which would give me permanent access to the members bar as well as a free mp3 player. I thought it sounded good and started to sign but realised half-way through the form-filling that it was actually an MBNA credit card I was signing up for. When I stopped writing and told her I didn't want a credit card she started complaining about her commission. When I told her that even if I did want a credit card I wouldn't get an MBNA one because they were a major contributor to the Bush campaign she looked at me like I was from a different planet.

If credit cards are being shoved at us in this way it's not surprising that more people are getting into trouble, regardless of how the bankruptcy rules have changed.

 

[WoodYouLike]

Sorry Pip, didn't mean to disregards your thinking. What I really meant was: due to the changes of the insolvency/bankruptcy rules last year April (making it much easier to declare yourself insolvent/bankrupt whitout the 'waiting' period of 5 - 10 year to apply for loans etc again of the old regime) the negative image of being bankrupt has changed also for the 'better'.

I do blame banks and credit card companies, but also now some persons see the new rules as 'the easy' way out (beware, it still isn't easy afterwards, but easier then before).

 

[2scoops0406]

More worringly, it the level of debt that people are declaring themselves bankrupt at. My mum used to work for CAB, when she started, the level of debt that people were declaring themselves bankrupt at was around 5 - 10k, that figure has now soared to 20 - 30k in debt.

that could be because the perceived "in trouble" level is in relation to wages and 5K isn't insurmountable a mountain of debt it once was perceived as.

in the space of 5 years? Don't think infaltion has been above 3% in that time, so wages rises don't account for it at all.

 

[securespark]

Insolvency and property repossession are not the exclusive domain of the labour government the tories were in when some of the worst cases of the above were reported.

yeah, like my repossession and near-miss with bankruptcy in the nineties...

 

[pipme]

Sorry Pip, didn't mean to disregards your thinking. What I really meant was: due to the changes of the insolvency/bankruptcy rules last year April (making it much easier to declare yourself insolvent/bankrupt whitout the 'waiting' period of 5 - 10 year to apply for loans etc again of the old regime) the negative image of being bankrupt has changed also for the 'better'.

I do blame banks and credit card companies, but also now some persons see the new rules as 'the easy' way out (beware, it still isn't easy afterwards, but easier then before).

No problem ...
"Not easy." Especially if it is found that misleading facts were presented ... could mean 15 yrs of hassel.... apparently can be 6 yrs now til banks allow access to full range of accounts .. But that is hearsay, from a motley forum elsewhere.

I really think the 'old days' were better in some respects, it was not easy to obtain loans ..
I fear for the youngsters especially in further education, loads of pressure both work and age led, will lead some into the abyss I am sure.
I can understand HMG feeling the need to support entrepeneurs, but others may need restraint.

You appeared a little 'edgy' and a tad too knowledgeable .. Hope you have not had the experience.

Oo Roo