You are currently browsing the tag archive for the ‘easy bankruptcy’ tag.

The number of asset-less debtors going bankrupt has reached such levels that the cost of processing these bankruptcies is becoming unsustainable for the Insolvency Service, according to Stephen Speed, chief executive and inspector general of the Insolvency Service, who was speaking at the recent Insolvency Today annual conference.

While this news of asset-less debtors using our easy bankruptcy laws to start afresh is encouraging, Speed also said that a point had almost been reached whereby taxpayer money would be required to cover the shortfall of the processing costs, which, according to reports, seems likely given that the Insolvency Service was forced to write of £81 million earlier this year.

Try the Banks

No, you're not having any of it back

Following the great taxpayer robbery of the banking bailouts – where free-market profit-chasers brought the world to its knees with their financial jiggery-pokery and eye-watering bonuses and then went cap in hand to the state when it all blew up – the idea of more taxpayer money being required to plug a hole, this time to cover the mistakes of individual borrowers, will no doubt result in more opprobrium being directed at debtors by the more pious sectors of society. Yet, and now stop me if this sounds ridiculous, surely it would be better to assess each individual’s case and try to determine whether the lenders had been at all culpable and had irresponsibly lent to people they knew would have little chance of paying the money back?

Making the banks pay for their mistakes and their greed – what a ridiculous notion.

Advertisements

Your bankruptcy will appear in the newspaper

To anyone who is maybe worried about their bankruptcy appearing in the newspaper, here I am talking about it in my home town newspaper. However, despite the publicity I am still a long way behind Kerry Katona.

You can view the pdf of the article here: Chron article 2

 

I was recently interviewed on the John Griff programme on BBC Radio Northampton. This was my first (and hopefully not my last) radio interview and it was a lot of fun. Amongst other things, we discussed my experiences of personal debt and bankruptcy which lead to me writing my book.

UPDATE: The interview is now available to listen to here.

I was recently asked by the guys from the Debtology website to write a guest post in response to an earlier article on the subject of bankruptcy (‘Bankruptcy – what IS the big deal?).

In my piece I talk about why we need our easy bankruptcy laws and also about how attitudes toward debt and bankruptcy are changing.  

If you are thinking about going bankrupt but are maybe worried about how you will be perceived, then you should definitely have a read.

The article is available here.

PS. If you are worried about debt and in need of free debt advice, then perhaps the guys from Debtology can help.

Talking about the Bankruptcy Diaries

A couple of weeks ago I was interviewed about my book by the lovely people at Hackney Hive. It was great to talk about the work and some of the issues around it. Thanks to all those at HH for showing their support for local artists. 

Below is an excerpt:

Hackney’s rich history has many aspects, but it is particularly feted for two things: being London’s revolutionary corner and its importance as an artistic hub. Often, these two collide and have provided many high points in Hackney’s cultural palette, especially its literary output. The best known of today’s Hackney literati is Ian Sinclair, a beacon for London literature. Lee Rourke is also proud to call Hackney ‘home’. It is time to welcome a new addition to Hackney’s artistic – and artistically revolutionary – spirit: Paul Broderick, author of the recently released The Bankruptcy Diaries. I was fortunate enough to be afforded a short audience with the author to talk about his book, why he wrote it and what he will be working on next.

“The Bankruptcy Diaries is truly a banquet for the soul of our modern moralists,” said Paul. “It’s one man’s journey – mine – from the youthful naivety of university and entering working life and my role in the broader fiscal complexities of the state to an enlightened awareness of the actual depth of today’s corporate exploitation of the individual. I present the work as a choice that many people are now – and many more soon will be – confronted with: levels of debt that can never be repaid. I took my choice on this – it’s all in the book.”

To read the rest of this article click here. 

A recent article by Lisa O’Carroll highlighted the interesting phenomenon of bankruptcy tourists from Ireland heading to the UK to discharge their debts. Due to more favourable insolvency laws – a bankrupt in the UK is discharged after just twelve months, whereas in Ireland it’s a draconian twelve years – Irish debtors are doing the sensible thing and crossing the sea for a quick release from debt.

Fish 'n' Chips, Tea, Becoming Debt Free

The most fascinating revelation in the article was that, ‘as few as 29 people were made bankrupt in Ireland last year’, a staggeringly low number considering the severity of the property crash in the Republic, especially when compared to the 79,000 who went bankrupt in the UK during the same period. It’s not difficult to deduce that the UK is effectively operating as Ireland’s bankruptcy court, which is considerably more helpful to Irish citizens than another bailout loan. Although ascertaining exactly how many of the UK’s bankrupts are made up of Irish citizens would be difficult, and clearly some Irish debtors will be eloping overseas without bothering with any formal debt discharge procedures (I would love to hear from you guys).

I just hope the message is getting through to the people at the bottom. The Irish banks have had their bailout, in turn subjecting citizens to some of the most brutal cuts in Europe. Now we hear tales of Irish property speculators bailing themselves out, by utilising UK laws. I’ve already called for a ‘People’s Bailout’, and now I extend this call to the people of Ireland – don’t be the chump left with a sackful of debt whilst everyone else extricates themselves from the mess. Get yourselves over to the UK and get rid of that debt!

Update: I have found a great article with information for Irish citizens wishing to go bankrupt in the UK. If you wish to know more then click here.

Thou shalt remain in servitude

The latest insolvency statistics were released yesterday and, as usually follows such announcements, the comment threads of news sites were awash with the protestations of indignant moralisers, complaining about the unjustness of it all – at how people can simply walk away and leave a trail of bad debts. Perhaps these preachers should stop for a moment to consider the absurdity of their outdated position?

Post- economic crisis, the banks have been bailed out leaving the citizens of this country to bear the brunt of savage cuts, which are the result of a huge deficit caused by the bankers’ unchecked greed and recklessness. Yet nothing has changed – the rotten system remains unfixed, and huge bonuses are being paid out once again. Proof of a return to ‘avarice as usual’, on the part of the global elite, was confirmed by Bob Diamond, CEO of Barclays, who last month brazenly told the Treasury Select Committee that, “there was a period of remorse and apology for banks and I think that period needs to be over”.

Ten Hail Marys...

In light of the gross inequalities of a rigged system – where the rich and powerful continue to profit and the masses take the pain – crying foul over those at the bottom freeing themselves from the debt shackles handed to them by the global lever pullers, is to effectively disseminate the banks propaganda for them, helping to keep the system functioning. 

A People’s Bailout

So the bankers have had their bailout and announced that their period of penance is over, but what of the millions of indebted people who don’t have anyone coming to their rescue? The people have an escape route too – in the form of easy insolvency laws. So if you’re over-indebted then don’t think twice about opting to bail out. Certainly don’t listen to the howls of righteous indignation as you announce your decision. Grab the parachute, take the leap, and float down into the land of freedom…

Can't handle life in a cage man

With massive student protests taking place in London today I’ve noticed a lot of web chatter about potentially putting oneself through university, racking up the fees and then declaring yourself bankrupt afterwards. A very shrewd move. However, this loophole was closed years ago after a few canny students began doing this. But the idea is a good one.

Sing for Free Education!

My advice would be to pay off the student loans with personal loans and credit cards before going bankrupt. However, one needs to be very careful here. The authorities are not stupid and could either reject your bankruptcy petition, or slap with you with a restriction order that lasts a decade. For this reason I would allow a good stretch of time to pass after paying off the student loans, keep racking up as much debt as possible – have ball whilst you’re at it – and then press the bankruptcy button a year or two down the line. I’m not sure whether this would work but I’d love to see somebody try. Well, it has been a day of protest and revolt…

Beneath the headlines lies the truth

The latest insolvency figures were published today and the headlines were all about the fact that there had been a sharp drop in personal bankruptcies during the third quarter of 2010 (the lowest level for five years). However, the total number of people declared insolvent during this period only fell 3.7% on the same period a year ago. This is because other forms of insolvency, Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs), have become more popular. It’s not that fewer people are struggling with debt and deciding to walk away from it, it’s just that they are choosing to free themselves in a different way.

My personal view is that this slight dip in insolvencies will be very temporary. Once the impact of the government cuts are felt, and if interest rates rise (they have to someday), those on the precipice will be tipped over the edge. 

80% Choose FreedomBy George! It's so easy to choose life and walk away from dreary debt

Another interesting fact was revealed in a statement from an insolvency practitioner, who said that,

 “More than eight out of 10 bankruptcies were made on petition of the debtor, which shows that many people have had enough and are throwing in the towel. They have been living with the pressure of debt for too long.”

So eighty percent of bankrupt’s chose this option for themselves rather than being forced into it, a heartening statistic that demonstrates that people are waking up to the fact that they can easily free themselves from the scourge of debt and the rule of the banks.

It’s time to laugh in the face of debt. Whether you just want some light-hearted relief from the gloom of indebtedness, or have serious rebellious intentions then you’re in the right place.

  • Check out my roll call of illustrious bankrupt’s in the Bankruptcy Heroes section.
  • Read my from my novel, The Bankruptcy Diaries, as I post entries from the book.
  • You are not alone – peruse the Problem Page to hear tales of debt woe and life enhancing solutions.
  • Learn the stories of Debt Fugitives, the international community of people on the run from the long arm of the debt recovery agencies
%d bloggers like this: