Problem is that is nearly impossible in this country to bankrupt someone
He has now bankrupcted himself
It is not nearly impossible at all. The banks are unwilling to bankrupt anyone as they must pay all the legal and other fees related to the bankruptcy. These would amount to a fair few thousand over time. Once they have bankrupted the person, they will be there fighting amoungst the other creditors for the scraps that make up the bankrupts estate. In the end after spending all that money on legal fees they may end up with a pittance i.e. less than their outlay.Problem is that is nearly impossible in this country to bankrupt someone, in the UK there are about 10,000 a month - here about 10 a year!
Now you see why it is very unpopular from the banks point of view? This is why they prefer to eek out a small amount monthly through instalment orders and the threat of committal to prison rather than waste money on bankruptcy.
It is not nearly impossible at all. The banks are unwilling to bankrupt anyone as they must pay all the legal and other fees related to the bankruptcy. These would amount to a fair few thousand over time. Once they have bankrupted the person, they will be there fighting amoungst the other creditors for the scraps that make up the bankrupts estate. In the end after spending all that money on legal fees they may end up with a pittance i.e. less than their outlay.
A bank has to be 100% sure before they attempt to bankrupt anyone that:
(a) The person has loads of assets that can be sold to cover all the debts and,
(b) Those assets when sold will cover all of the costs and will give the bank the maximum return for their investment in the bankruptcy.
Now you see why it is very unpopular from the banks point of view? This is why they prefer to eek out a small amount monthly through instalment orders and the threat of committal to prison rather than waste money on bankruptcy.
Bankruptcy is where your are worth less than the value of your assets.
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