where next?

[Welsh Boy]

Been looking at some stats on debts in the States, most cultures that are there seem to find there way across to us and I was thinking where do we think the current debt situation will lead us to in the future? Ihave learnt so much by reading on this forum and even though I have worked in this industry for many years I am impressed by the level of knowledge and advice here. This is in my opinion going to get to a stage where the whole of the finance industry will need to be reviewed. I have wondered where next with the present finance and would be interested in anyone else`s view on this. Whether we work in the industry or have been touched by debt problems ourselves or via personal friends or family the fact that we can share each other`s knowledge is comforting. If it`s like this now where do we go for the generation`s still at school. Just a thought but I would welcome anyone else`s thoughts. Tony

[MelanieGiles]

And the great thing about the forum, Tony, is that "experts" such as ourselves can also learn an awful lot, both legally and practically. from the experiences of the many posters. I continue to learn new things every day which help me to be a better practitioner and understanding of my client's ongoing experiences.

The US is an interesting market - and I always say that we operate about 5 years behind. In the US, being in debt is almost fashionable, and in the commercial industry you are often viewed as only being an experienced businessman(woman!) if you have experienced your first bankruptcy.

Also the debt sale/assigment market over there is huge, so difficult to keep up with who owes what to whom. There are signs of this already happening over here.

One interesting point is that the US bankruptcy laws, which were relaxed some time ago - and yes we copied them about 5 years later - are now talked to be getting tougher again in terms of discharge periods. Will we ever see 3 or 5 year bankruptcy periods again over here again I wonder?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

Trust the Americans to look at bankruptcy like that!

I do think bankruptcy will be toughened up in the UK, but when they do that, perhaps they should toughen up the lending rules as well. It is far to easy to get credit these days (as I know to my cost!), and while no-one forced my to take the money, why on earth did they keep giving it to me? I was always honest on my applications and listed what I already owed, but they still lent me more.

In a way, going BR was the best thing I could have done. I am learning to live without credit, and the only time I have missed it is at the end of the month when I couldn't afford petrol. Luckily Dave (bless him!) bailed me out, and I have learned another budgeting lesson. I'm not proud of being BR, but I can't help thinking that if things don't change soon, I will no longer be the exception, but the rule.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[freelili]

I have just had a call from one of my creditors offering me a consolidation loan!!!!!!!

I have 32K of debt and off work sick long term and I cannot work full time due to family commitments. They even said they would delay payments. They really made it sound like a good idea. I really felt like telling him to come off the stupid pills, but I didnt, I did say no though.

LILY

I asked God for a solution and have to live with his reply.

[tracy.h]

To be honest with you skippy i agree with you,it is as you say far to easy to get credit,like you each time i got another credit card or loan i always disclosed what i already had
So who is really at fault.
Yes you could say me for asking,but if it wasnt so easy then i probably wouldnt be in the debt im in now.
I no i didnt have to except but it sometimes becomes a way of life as i and many others have found out to our cost

[go_4_broke]

You don't even have to go as far as the US to find better ways of doing things. In Scotland they have the Debt Arrangement Scheme which is a free, state-sponsored DMP which also protects you from creditor action.

Their equivalent of the IVA, the trust deed, has been around since the 19th century and the usual period is just 3 years as against the 5 for an IVA.

-Best

PS Well done Lily !

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[MelanieGiles]

And Trust Deeds are on their way out to be replaced by English style IVA's - estimated to take effect in 2008! Progress??? Heck, I'm old enough to remember Deeds of Arrangement - now they were fun!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[go_4_broke]

Thats a shame, because Protected Trust Deeds seem to have some significant advantages for debtors over IVA's- not the least of which being the 3 year time period.

And of course in my ususal modus operandi of looking for loopholes I had started to wonder what would actually prevent non-Scottish people from taking advantage of them.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[MelanieGiles]

You have to be resident in Scotland - and registered on their electoral register.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[go_4_broke]

Thanks Melanie - most interesting !

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'

[DebtDummy]

America has a new rule where you can't declare a personal bakruptcy when you feel ready. You have to attend a course to learn about debt management, what credit is, etc.;and explore your feelings about money, spending, etc. After the course you get a certificate and then you can file for bankruptcy. No certificate, no petitioning.

Gee, if that came here it may be a good move. At least we would learn about credit and what an APR really is before we sign on the dotted line.

All I have left is my humour.