Impact of more liberal UK Bankrupcy laws on SME's and small creditors.

This company was recommended to me by a work colleague who uses their services to rescheduel debts. Apparantly, when most people were getting telephone calls, letters and knocks on their hall door this person had the banks complying with these guys.

I am unsure what they did to prevent him getting harrassed but apparantly he pays his debtors a percentage and the banks seem happy to take it. I am unsure of the fees he pays them, but it must be very little, as his wage would not be substantial.

I did some research myself before I gave them a call, but all seemed well above board. They have been in operation for decades in the UK.

So far they have been a dream to deal with. It's like a weight has been lifted from my shoulders.

It's still early days so only time will tell how it all goes from here.
 
demoivre said:
Article in on new debt settlement scheme.
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Who thought up that pile of Sh1te. It solves nothing. I give you my house, and then pay off the arrears, whilst trying to keep a roof over my head by renting elsewhere. How does that get anyone out of the mire.

This situation is getting crazier and crazier.

I can also see it fro the other side as well.

If I was some one who didn't take on an investment say, and simply has a home and pays their taxes (every increasing each month) how must they view the continual bail out and refinancing of the banks which may also provide debt relief to those who did invest and lost the money.

How long will those who have no debt countenance a bail out for those in trouble.

Those in trouble need a bail out or no one can move on.

The banks can't afford de bt forgiveness as this would make them bankrupt again and need more money.

More money won't be loaned unless it can be guaranteed to be paid back.

It can't be guaranteed to be paid back unless you get taxed more.....

and so it goes on.

Honestly I don't know how you get out of this..

Steve
 
It is the banks having their cake and eating it. This will not help many.
 
Time said:
It is the banks having their cake and eating it. This will not help many.
Click to expand...

On one of the radio shows yesterday they mentioned that the reason the government has not brought in a proper bankrupcty system is that the banks have the ear of the government and they, the banks don't want it reformed, so they must be very scared of what is on their books. So it is the banks that are stopping the new legislation. And as the new governement has no new ideas and are only continuing what went on before why would anyone be surprised that we are not a democracy but that the country is run by vested interests. Banks, regulators and governement all well paid, no cuts, fat cat pensions and 'pretend' salary caps.
 
Only in Ireland, eh.

Who pays for the private rented accomodation?

The bondholders must be on their knees laughing.
 
Bronte said:
On one of the radio shows yesterday they mentioned that the reason the government has not brought in a proper bankrupcty system is that the banks have the ear of the government and they, the banks don't want it reformed, so they must be very scared of what is on their books. So it is the banks that are stopping the new legislation. And as the new governement has no new ideas and are only continuing what went on before why would anyone be surprised that we are not a democracy but that the country is run by vested interests. Banks, regulators and governement all well paid, no cuts, fat cat pensions and 'pretend' salary caps.
Click to expand...

I suspect that this is the key. Your banks have had a bail out for what is known, the elephant in the room is the billions in property debt that can't be serviced and can't be sold and is yet to be written down.

Just look at the write downs that Nama is doing and that will be the start of what the banks are looking at and they will be starting from a much higher base.

Steve
 
Well said Bronte.

It's been game over for the banks for some time now. They've been spinning a yarn that will surely unravel within the next twelve months. I shudder to think what the outcome will be.

As discussing property prices is banned on this forum I will direct people to a repeat of today's J.D Show. If you put 2 + 2 together you can guess the outcome.
 
demoivre said:
Article in on new debt settlement scheme.
Click to expand...

Steve Thatcher said:
Who thought up that pile of Sh1te. It solves nothing. I give you my house, and then pay off the arrears, whilst trying to keep a roof over my head by renting elsewhere. How does that get anyone out of the mire.
Steve
Click to expand...

Well it depends on the numbers but I can see how it could work and make life better for someone eg Mary owes 400k including arrears - original mortgage 430 k taken out 5 years ago. Repayments are 2.5k per month which she can't afford - she can only afford 1300 per month. House worth 280k which bank gets after selling. Mary now owes 120k. She needs a roof over her head so she pays 650 per month for rented accommodation and 650 per month back to the bank for five to seven years after which her outstanding debt is written off. At present Mary is liable for the full 120k - according to the linked article she would only pay back 55k approx. under the new scheme, and then be debt free.
 
Time said:
A UK bankruptcy would be far more advantageous in that example.
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Financially it would but whether or not people en masse are prepared to go down that route and establish a COMI in the UK remains to be seen.
 
Surely the impact of numerous small businesses going bankrupt easily will be that the creditors, other small businesses, now will have to fold?
There are old-fashioned business owners trying to keep the trade afloat and pay off their debts at personal cost, but if they are not paid, by the person going bankrupt, that wipes out those trying to survive and keep their employees afloat.
I don';t know what the answer is, but easier bankruptcy will just open the floodgates.
 
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