So, I know that it is bad but I need some more amunition.
A friend of mine recently got a bill for renovations that they had done on a house that they have subsequently sold. Apparently they sort of "forgot" about the bill - but anyway.
She doesn't have the money to pay it. She doesn't have any assets in her name so her DH is saying "why don't you just declare bankruptcy then it will go away".
My take on it is that banruptcy is bad. It should not be used as a way of getting out of a debt which they did gain benefit from - the house sold for heaps more than they paid for it - even after taking the amount the builder now wants into account.
But I need to know the real ramifications of declaring bankrupty. I know that you can't be a director of a company and your credit rating might as well be zero but what are the other things.
You can't borrow money for eons afterwards - just think about what you were doing five years ago, and how your life has changed in that time, and then imagine how your life my change in the next five years and all the reasons you might want to borrow money...cars, houses, businesses, personal loans, store cards, interest-free purchases of furniture or hot-water systems, etc etc.
I don't understand why they don't just go to their bank and ask for a loan/redraw against their current mortgage, or even a low-interest credit card???
It's so totally ethically wrong to try to just skip out of paying for something they agreed to, even if the builder doesn't get at them, karma will. My guess, if this is the tack her DH takes regularly, it will be sooner rather than later.
if they declare bankruprty it takes 5 years after the date to even try to get a loan from anyone , or any other credit like mobile phones , store credits cards . she will be stuffed .when they do the person has have pretty good assets to back them up to get another loan , tell them to work out the company that they owe money , payment arrangements etc. you said she has no assets , computer , tvs , fridges ,washings machines, cars furniture they are assets . the company can reprosses items like that , she cant say my husband owns because then they have to show receipts in his name . her best advice talk to company thats she owes money . i know now companys that r owed money are using commercial agents to chase people to get there money back. the above items i mention are assets .
Last edited by mr dad of many; February 19th, 2009 at 12:13 PM.
Tell me why declaring bankruptcy is bad
- but anyway.
Reply With Quote
Bookmarks