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abd
Junior Member
284 Posts |
 Posted - 04 June 2008 : 14:38:34
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Hi
Just a curious question to try an understand the world of insolvency
could a creditor push you towards bankrupcy, cause they will get your tax for 3 years,which may cover their losses more than an IVA?
Abd |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 04 June 2008 : 14:50:15
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Hi abd,
Your tax is only paid into the Bankruptcy until the end of the tax year not three years, however if you are subject to a IPA/IPO this may contribute something, however the costs of administering the bankruptcy have to be covered so it is unlikely the creditors would get a better return than in an IVA.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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abd
Junior Member
284 Posts |
Posted - 04 June 2008 : 15:32:53
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Thanks Brett, well I think I will never understand the way they think ,when they refuse IVA knowing that people may go bankrupt.
Abd |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 04 June 2008 : 15:35:29
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That makes two of us!!!
Vicki x |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 04 June 2008 : 15:52:36
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Hi Guys,
They do make some pretty strange decisions.
To get inside the creditors mentality their hope is a larger sum will be paid either via contribution based IVA's or the fear of Bankruptcy will drive the debtor into a debt management plan.
If you look at it as a numbers game they are probably right as more people enter Debt Management Plans than Bankruptcy.
If people decide to offer a higher contribution by IVA then the creditors get what they want which is predominantly more money.
If a debtor enters a formal insolvency procedure such as an IVA or Bankruptcy the bank has to remove this debt from their balance sheet.
If they have credit insurance in place they can then claim on this remove the debt as a loss against their taxes, However if a debtor enters a DMP the banks can keep this on their balance sheet as it not formal insolvency.
The Banks use their balance sheets as security to borrow against so in turn they lend more money and make more profit so for the banks the DMP is the best route.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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abd
Junior Member
284 Posts |
Posted - 05 June 2008 : 10:02:43
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Hi
That would make sense then as to what is their aims
but what about non-bank creditor, as in my case my previous employer(NHS hospital),I offered them an IVA which could have covered a great deal of their loss, but now Iam bankrupt they will not get even half of that.I know it is over now ,dwelling on that won't make a difference,but out of curiousity,trying to get to know how they think about it.
abd |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 05 June 2008 : 13:38:13
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Hi abd
NHS personnel department probably haven't got a clue about the way BR works. They probably thought it meant they would be able to "claim" back every penny.
I know how you can dwell on it - I spent months torturing myself when my lump sum was rejected and dreading the next step of going BR.
But now.....well, it's the best thing I have done for a long time!
Vicki x |
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abd
Junior Member
284 Posts |
Posted - 05 June 2008 : 15:44:17
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Hi Vicki
Being a newly declared bankrupt Iam not sure about BR being the best thing I have done for a long time,but one thing for sure it is an undescribable feeling of relief to deal with your debt after a long period of agony.Worth mentioning is feeling positive about your self and the fact that you can have a new start and build it all up again like the rest of the world.So I think I can agree with you Vicki,despite my quite young experience in BR,and there is a lot to come.
regards, Abd |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 06 June 2008 : 12:24:13
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Hi Abd,
Welcome to your new life. It's a fresh start, so make the most of it!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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abd
Junior Member
284 Posts |
Posted - 06 June 2008 : 12:55:43
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Hi
Recently I have been roaming around reading and browsing for bankrupcy related issues and people,and I think stories about guys like you Julian and Brett etc.is inspirational to many people going through similar situation.It is good to know ther is life after financial death in the current climate.Before this I really had a silly opinion (a Hollywood type) about bankrupt people ,being totally lost,going down the drain .These success stories, just fill us and others with hope.all the best and more.
abd |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 06 June 2008 : 13:27:51
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Hi Abd,
Thank you for your kind words. Having been through BR myself, helpong others through the same process is job satisfaction that money can't buy!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Topic |
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Just a Q
