Thats not quite right, you don't pay income tax to the taxman, but you pay what you would have paid to the taxman to the insolvency service who spread it to your creditors.
Going Bankrupt...
- Thread starter The Mad Rapper
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Thats not quite right, you don't pay income tax to the taxman, but you pay what you would have paid to the taxman to the insolvency service who spread it to your creditors.
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I guess that that would make sense Baz. I saw his payslip one christmas, he'd been banging in the overtime and there were no deductions. He had something like £600 for a weeks work.
And there we have it....
If I was to loan a grand to a friend, I would have to be damn sure he would pay it back.
If i could take out an insurance policy on the loan, hell, I would lend a grand to anyone.
anyone want to borow a grand?
terms and conditions apply.The way to get around that system though is that your "tax" you pay to the receiver is static, if you do more overtime, its yours....
[DW]Muffin;10680150 said:
So are a hell of a lot of other people, but illegally. The builders who just built your extension don't mind cash in hand, you don't either, you get £500 off the job. I am sure most people have paid for services with "cash" That is illegal.
The bankruptcy tax "dodge" isn't and is set out on HMRC's website, unless they have lost the page..
So are a hell of a lot of other people, but illegally. The builders who just built your extension don't mind cash in hand, you don't either, you get £500 off the job. I am sure most people have paid for services with "cash" That is illegal.
The bankruptcy tax "dodge" isn't and is set out on HMRC's website, unless they have lost the page..
They are IVA's, Individual Voluntary Agreement, it has no repercussions like bankruptcy, so ideal if you are a director or the like, you don't lose your house or car so to speak, but you have to pay it back over 5 years. Not suitable to everyone, especially not those with more than £15k of debt.
Why do people think that Bankruptcy isn't punishment?
Where do you get that from??
IVA's are for people with more than £15k's worth of debt, and at the end of the IVA if there is equity to be found in your property, you can still be forced to sell it. Same goes for any valuable assets you have at the start - so the expensive car, 50" plasma etc will still be sold to go towards your debt.
Further if you have a change of circumstances and have more cash during your IVA term you must tell the official receiver who will increase your payments. IVA's are not an easy way out, as you have a strict monthly budget for you, and make a good chunk of payments over the term to what you owe.
Soldato
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To be fair all the people on here saying how can you do it etc. I would class myself of above average intelligence , and I got myself in debt over 30 k worth luckily for me I have paid it all of over a period of 4 year very hard work but you can do it and it safe to say I have certainly learnt my lesson
I'm in a fairly small amount of debt compared to some. I actually feel glad when I pay some of it off, or when I can finally close an account that has been looming over my head for a while. I'd be very gutted if I ever had to declare bankrupcy, but that's me. Thankfully as with the last poster, I've learnt my lesson and whilst my debts aren't overly huge (currently standing at 5k) they are still a major nuisance and I will be very happy when they are all gone.
Credit Cards and bank loans are the work of the devil, saving up and buying something expensive, like a holiday or a new big LCD TV, with hard earned cash makes it feel so much better.
Credit Cards and bank loans are the work of the devil, saving up and buying something expensive, like a holiday or a new big LCD TV, with hard earned cash makes it feel so much better.
Correct. IVA's these days are actually harder to do than bankruptcy, as you say, they are done (usually) over five years not the one year most bankrupts get. There is a budget in place that accounts for pretty much most of the debtors money. You end up paying back far more than if you go bankrupt.
There are various reasons why people get in to debt, it can happen to anyone. You never know how your circumstances can change overnight. However, the people who just borrow money with the intent of going bankrupt after racking up 1000's in debt, should be dealt with in a stricter manner (it's all the rage with students now apparently).
Some people genuinely realise that they have foolishly or otherwise got in to a lot of debt and do seek to repay that, but the majority of people take what is now seen as the easy route of bankruptcy. The stupid thing is now is that it is harder to get an IVA than it is to go bankrupt, a friend of mine has had his IVA proposal refused 5 times now and he will actually be paying his debts back for something stupid like 30 years...
Bring back debtors prison! Well maybe debtors community service.
You can declare yourself bankrupt, but you have to spend the next couple of years or so working for minimum wage picking up dog poo and cleaning up after the other chavs.
You can declare yourself bankrupt, but you have to spend the next couple of years or so working for minimum wage picking up dog poo and cleaning up after the other chavs.
I'm also of above average intelligence and education and I ran up debts of about 150% of my annual income. Intelligence and education are no substitute for sense.
I lived beyond my means, to begin with. Later, I was borrowing to repay debts as the interest accumulated. Barclays took me for ~£3000 in bank fines, whioch hardly helped. So the situation caused by my poor judgement was made worse by financial companies. That's what they do - as long as you don't go bankrupt, they make maximum profit by keeping you in maximum debt. I didn't help myself by ignoring the mounting problem.
I took on a second job, went to the CAB, assessed what I could afford to pay and had the CAB write the usual "<name> can't pay in full, please accept this lower offer" letters. The variation in response was surprising. Kays catalogue sent the second level debt collectors in as soon as they received the letter from the CAB, over about £100 without any missed payments. Alliance and Leicester happily took the offer, because the amount I could afford to pay went almost entirely on interest, taking about £3 per month of the debt itself - they were making much more profit from me than they would under the normal conditions. At the other end of the scale, Marks and Spencer wrote a sympathetic letter in reply and waived interest for a year (after the year, they did it for another year, then another).
It took me 5 years in the end, working two jobs and living on minimal income. It was very unpleasant.
But I made the mistakes and I earned my way out of the problem. That's valuable.
By going bankrupt she will never ever, as long as she lives, be able to apply for finance.
Ever...
So, she isnt getting away with it, because shes got to go the rest of her life knowing that, she will struggle with banks, she isnt allowed to have one if she goes bankrupt, which will make it harder for her to find work, she cant work for any government run agency/company/organisation, i.e. police.
I know someone close who went close to it, its an ultimate last resort..
Ever...
So, she isnt getting away with it, because shes got to go the rest of her life knowing that, she will struggle with banks, she isnt allowed to have one if she goes bankrupt, which will make it harder for her to find work, she cant work for any government run agency/company/organisation, i.e. police.
I know someone close who went close to it, its an ultimate last resort..
If only that were true. There have been numerous cases where people have got mortgages as little as 3 years after going bankrupt. Such as the ones on "tonight with trevor macdonald".
Were they ligitimate?
Soldato
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can someone close this thread
,I could waste all of xmas talking about debt, I owed over 50 K in debt , but through hard work i'm debt free now lesson learnt and never ever again! if anyone needs advise on best way to do it then mail me its in my trust
Merry xmas everyone
,I could waste all of xmas talking about debt, I owed over 50 K in debt , but through hard work i'm debt free now lesson learnt and never ever again! if anyone needs advise on best way to do it then mail me its in my trustMerry xmas everyone
