Creditors And Insurance.

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mish1953

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Post by mish1953 » Sun Jul 01, 2007 7:15 pm
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Is it possible that some creditors can take out some form of Insurance so that it takes the edge off losses that they make if someone takes out an IVA ?
An even worse scenario would be if they could insure against bankruptcy but not IVA .. or is that me just being paranoid ?
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Storm

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Post by Storm » Sun Jul 01, 2007 7:41 pm
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The lenders you have don't take insurance against this type of loss.

Credit granting is based on the theory of odds..... what are the odds of somebody paying full term or not as the case maybe.

Northern Rock and RBS have less than 1% bad debt. so losses are actually written off against profits bit less capital gains tax to be paid.

Not sure if that answers your question
Last edited by Storm on Sun Jul 01, 2007 7:42 pm, edited 1 time in total.
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mish1953

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Post by mish1953 » Sun Jul 01, 2007 7:47 pm
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Thanks Storm - just needed to have some reassurance on that.
Insurers are the biggest ganblers in the world, I just had a scary thought that Credit companoes may be able to offset some debt that way .
Ta
Hamish
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