From: "Eric Jones" 
Newsgroups: uk.finance
Subject: Re: Advertising Bankruptcy??
Date: Mon, 19 Sep 2005 16:30:43 +0000 (UTC)


"JaffaB"  wrote in message 
news:1127122326.822951.214650@g14g2000cwa.googlegroups.com...
> The following item was first posted on the Motley Fool web site, has
> been picked up by Sky News, and is now seen in a couple of papers.   IS
> this not advertising Bankruptcy as the easy way out, with the
> 'disacharged after a year' claim?
>
> It makes it sound like if you have massive debts and no assets, an easy
> way to get out of it is to follow this advice.  And if your, say, a
> student, why not just take the year off and go around the world.
>
> Im getting a little sick and tired on the stupids getting such an easy
> time of it...
>
> Is Bankruptcy So Grim?
>
> Report by Jane Mack
>
> The number of people going bankrupt has risen by nearly 30% over the
> last year taking figures to a record high of more than 40,000 personal
> bankruptcies a year.
>
> This doesn't surprise me - there's been a remarkable increase in the
> number of people choosing bankruptcy on our Dealing with Debt
> discussion board over the last year too. And, for the most part,
> they've not found it nearly as hard as they'd thought it would be. In
> fact, some of the judges and official receivers they've faced have been
> surprisingly kind.
>
> Bankruptcy is obviously a last resort and there is still an element of
> stigma attached to it which makes people want to avoid it at all costs
> not least because those with assets - namely their home - stand to lose
> them.
>
> The financial services industry also puts a big black mark against your
> name which stays there for several years to come and it will affect
> your ability to get a mortgage and credit. You'll also pay higher
> interest rates because you'll be seen as a higher risk and it can have
> an adverse affect on your job prospects too.
>
> But, for someone with large debts, little or no income and no assets,
> bankruptcy can be quite a good option. Indeed it may be the only way
> out and, since the rules were changed a couple of years ago, bankrupts
> are usually discharged within a year so you get your life back more
> quickly these days.
>
> Of course there are mutterings about how the new regime is being abused
> by people who want a quick get-out but for the most part people going
> into bankruptcy have simply been the victims of unfortunate financial
> circumstances. And, judging from the people on our Dealing with Debt
> board, the huge relief of having the miserable debt burden lifted far
> outweighs any of the restrictions that come with going bankrupt.
>
> Nevertheless, the best solution is still not to get into debt in the
> first place or, if you're already in debt, to try your best to get out
> of debt before it all goes badly wrong. Bankruptcy may be easier than
> it used to be but it's still a very scary prospect.



Just try opening a current account afterwards or apply for a credit card or 
loan or mortgage or even a catalogue account.
Eric