| |
| |
|
Debt Relief Information |
|
|
|
What the Mail on Sunday Said
Anyone considering Bankruptcy may have experienced fear after reading an article written in The Mail on Sunday with the headline "Bankruptcy cheats face crackdown". But, how much of what was written was in context of the reality of Bankruptcy as it is today? The article implied that since The Enterprise Act 2002 the rise in the number of people going bankrupt was due to them using the Bankruptcy route as a "Get out of jail free card". The assumption being that The Enterprise Act 2002 made bankruptcy an easy option. However, the writer didn't take into consideration the actions the DTI have taken to raise financial awareness and to ensure better advice is given regarding people's options when faced with personal debt issues. The article gave the impression that one of the restrictions of bankruptcy was that you could not open a bank account until you are discharged from bankruptcy. However, there are infact 40 basic bank accounts, half of which will allow an undischarged bankrupt to open an account. This in itself indicates the writer of the article is not fully aware of the effect of bankruptcy, therefore giving the impression that the article could possibly be the result of poor research. The Enterprise Act 2002 (bought into force in April 2004) was made to give honest people a fresh start in life, which would be free from the stress of debt. Not for the purpose of encouraging people to "use insolvency as a way of shaking off creditors". The writer implied that the provision, which allows the IP to request a restriction order on a bankrupt, is hardly used. Perhaps this is because, people who lodge petitions for bankruptcy have not gone out to get themselves into huge amounts of debt and are genuinely unable to repay their debt due to unforeseen circumstances, rather than fraud, recklessness or dishonesty. If an Insolvency Practitioner suspects fraudulent or criminal behaviour, they will apply for a Bankruptcy Restriction Order (BRO) for the court to assess and decide what action to take. The writer also states that "New" Government proposals due out in the next few days will make it easier for creditors to set up plans for repayments, an "Individual Voluntary Arrangement". Individual Voluntary Arrangements (IVA's) have infact been around since the 1986 Insolvency Act and used by employees and self employed people. This only further questions the credibility of the writer and The Mail on Sunday for publishing such an article. What the writer also doesn't realise is, people who have failed IVA's or not able to get an IVA add to the percentage of people petitioning for bankruptcy. The worry that this article will have placed on people is not only unnecessary, but also misleading. The reduction in the terms of discharge from bankruptcy is supposed to be a positive change in The Enterprise Act 2002, not a negative one as implied in this article. If you have sought advice, and you know you have no other option than to take the bankruptcy route then you should not be put off. "Nothing has changed", as Simon Wiggins of Ask the Expert informed one of his posters who read the article and was concerned by it. If you would like further advice regarding your financial situation FCL Debt Clinic offer free debt advice which will enable you to see what your options are regarding resolving your debt problems. Nicola Bullimore has been working with people regarding debt issues for a number of years. For more information regarding debt, please visit Debt Questions
MORE RESOURCES:
Debt-Relief - Google News |
|
|
|
RELATED ARTICLES
Personal Debt Reduction Practices Personal debt reduction practices, the steps people take to relieve the debt in their lives and to become more financially free, are a hot topic among financial circles. American spending habits are producing more people who are deeper in debt rather than people trying to achieve financial freedom. Debt Free and Carefree Are you still clearing a mountain of debt amassed last Christmas or even during last year's summer holiday?For those of you who make financial plans, who budget and save, you can skip this article. For those who get a little carried away, who regularly spend more than they can afford, this article is for you. Top Ten Reasons People File for Bankruptcy 1. Eliminate the legal obligation to pay many of your debts. The New Bankruptcy Law -- How Will It Affect Debt Negotiation? In April 2005, Congress made sweeping changes in U.S. Dont Let The Good Times Bury You It is vital to get rid of debt while things are going well. Yet the opposite is usually the case. Use A Debt Checklist To Examine Where You Are A Debt Checklist allows you to look at items and areas of your financial life. You need to examine these to gauge how you stand. Selecting A Credit Counselor; Asking The Right Questions. When you find yourself thinking about using a credit counseling service, you need to be very careful. You need someone who will help you, not just some pushy sales associate who wants only to sign you up for their service. Currency Trading Fee Concept Troubles with Global Economy; Do you see future problems with our global economic plans to make a one world system, where free trade and prosperity can rein the world over. Many world leaders have agreed a one-world system is best for all. Bankruptcy: Which Chapter Do I File? There is more than one kind of bankruptcy. You should understand your options before deciding which chapter of bankruptcy you are going to file for, or if you are going to file for bankruptcy at all. 4 Simple Ways to Solve Your Debt Burden Getting Behind Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road. Individual Voluntary Arrangements- A New Alternative to Bankruptcy This May, the Department of Trade and Industry in the UK found that there were 10,091 bankruptcies in the first quarter of 2005. This represents an increase of 24. How to Avoid Bankruptcy Bankruptcy is a legal way to offer folks with high interest debt a fresh financial start in life. In case you are considering personal bankruptcy as an answer to your debt problems, you are not alone. Fast Track Out of Debt You go to the mail box and scan - a couple fliers (nah), your magazine subscription (yes!) and bills (groan). Every month the bills show up and as you sigh and take out your check book you wonder if you will ever be free. Is Debt Negotiation Bad? Educating yourself about the ins and outs of debt negotiation is a good first step. Please note that the term 'debt negotiation' is also known as debt arbitration or debt settlement. How Do I Lower My Debt Burdens? How do I lower my debts?There are several ways of improving your credit status. If you have decided upon taking up firm steps to decrease your debts, then you may consider these few ways for dealing with the situation. Bankruptcy Reform There are some new bankruptcy laws going into effect before long and many think they are much needed. Of course, that depends on which side of the bankruptcy you are a part of. Life After Debt - Strategies for Dealing with Problem Debt Honorably and ethically rid yourself of burdensome debts using the little known Negotiation Strategy, without having to experience the loss of control and privacy associated with filing for bankruptcy, consolidation, or credit counseling.The inability to reduce debt and saving money are the two biggest obstacles preventing Americans from living financially sound lives. Should You Invest In Savings Or Payoff Your Debts? I have faced this financial question 8 years ago and recently I have friends asked me this same question. I think I should write it up so that it may help some of you that having the same situation. 5 Ways to Get Out of Debt It has been said that everyday more and more people in the world are getting into unsecured debt. Once reason for this is the relative ease in which credit card companies and banks are extending credit to their customers. Credit Repair? Its All Up to You Log onto to a search engine such as google.com and type in the term credit repair.
|
| home | site map |
| © 2006 |
