Insolvency/bankruptcy

[Disco Dan]

Does anyone have any experience and/or knowledge in this field?

A close friend of mine is being forced into insolvency and cant afford financial advice etc.

We are talking about a good 30 grand and the solicitors client is a very large bank!

[KLOWN]

easy, rob the bank that is trying to take your friends money. that'll teach those fuckers

[Disco Dan]

IE - Legal aide, lawyers, financial advice etc?

[KLOWN]

so are you saying that my "advice" wasn't helpful?

can't he go/talk to cab?

[Disco Dan]

so are you saying that my "advice" wasn't helpful?

can't he go/talk to cab?

err no not really! ...in actual fact that was kinda the cause in the first place. bloody greedy banks!

[The_Dover]

can he give good head?

send him to K'Rd to earn some cash.

[Disco Dan]

can he give good head?

send him to K'Rd to earn some cash.

he tried that.

[Finn]

I don't think a bank would bankrupt someone for 30 grand. What's the point? It would cost them and they wouldn't get their money. He should just talk to the bank about a payment plan - easy.

[bane]

I don't think a bank would bankrupt someone for 30 grand. What's the point? It would cost them and they wouldn't get their money. He should just talk to the bank about a payment plan - easy.

Finn, stop talking common sense... your scaring the children...

Dover helpful as usual i see

[The Stranger]

Hmm, you say your friend aye?

[Jimmy B]

I don't think a bank would bankrupt someone for 30 grand. What's the point? It would cost them and they wouldn't get their money. He should just talk to the bank about a payment plan - easy.

Absolutely correct

[Disco Dan]

Absolutely correct

err i know someone that was forced into it for less... they can and they will.

[Finn]

err i know someone that was forced into it for less... they can and they will.

Hmmm, some words of advice... Don't take ANY business advice from your friends.

[Jimmy B]

err i know someone that was forced into it for less... they can and they will.

Well that may be the case and I am sure that in a true default situation the lender has little option but to seek recourse, it is a counterproductive process and as such it is a last resort. I dont know your mates situation. I have worked for a bank for 20 years so I am still a bit green but intuitively I would encourage your friend to sort out an arrangement asap. Its only 30K FFS thats not even a decent fee for a Bank.

[jrandom]

err i know someone that was forced into it for less... they can and they will.

Bollocks.

They weren't 'forced into it'. They probably just stumbled into it through their own laziness and ignorance.

A friend of mine owed $30-something K at one point. Lawyer's letter threatening bankruptcy ensued. After a few sensible chats with his creditor's solicitor about realistic recovery and the commercial position of his company, I guaranteed a $10K loan, he handed it over and the whole thing disappeared.

The key to any 'insolvent' situation is just to talk to your creditors without bullshitting them. There's always a way. Bankruptcy is what happens when people stop talking.

[Flyingpony]

Get your friend to go to the central court house. Someone there should be able to help him/her.

Failing that, try citizen advice bureau. They're there to provide FREE advice.

[Jimmy B]

Get your friend to go to the central court house. Someone there should be able to help him/her.

Failing that, try citizen advice bureau. They're there to provide FREE advice.

With respect FP, I think Fish and Finn have nailed it

[The Stranger]

Bollocks.

They weren't 'forced into it'. They probably just stumbled into it through their own laziness and ignorance.
...

The key to any 'insolvent' situation is just to talk to your creditors without bullshitting them. There's always a way. Bankruptcy is what happens when people stop talking.

If you remember anything in life remember Fishes words.
The amount of money wasted because people fail (for whatever reason) to talk is just incredible.

Mind you, keeps the lawyers off the streets.

[Ixion]

Bank, credit card company etc won't institute bankruptcy for 30K (unless there's a lot of prior history). They want their MONEY, not revenge, and bankruptcy is a lousy way of collecting debts.

Only people who may do it for 30K are either someone who's just doing it to prove a point, or the IRD. And the latter is unlikely unless you piss them off.

Tell friend to go talk to creditors , along the lines of "I want to sort this thing out for both of us. Can you help me figure out a way to do that".

[mstriumph]

With respect FP, I think Fish and Finn have nailed it

you know, so do i ...............

was it Churchill that said "Better 'jaw, jaw, jaw' than 'war, war, war'" ?
your friend has everything to gain and nothing to lose by approaching his/her creditor and trying to come to a repayment arrangement with them .......

[Nasty]

There are a number of laws around insolvency .. he should have in his area:
1. a community law centre ... which is normally free/really cheap to go and chat to
2. citizens advice bureau .. they know the basics

Sometimes it is better to go into bankruptcy and gain a way out of the problem ... but always check the downsides ... as there are some major ones.

[Jimmy B]

There are a number of laws around insolvency .. he should have in his area:
1. a community law centre ... which is normally free/really cheap to go and chat to
2. citizens advice bureau .. they know the basics

Sometimes it is better to go into bankruptcy and gain a way out of the problem ... but always check the downsides ... as there are some major ones.

I am sort of in agreement with what you are saying for a situation where the underlying issues maybe a little less clear than those presented by DD.

If the creditor is a Bank then the documentation will not likely allow any wiggle room from a legal perspective. The debt and obligation will be properly disclosed and executed.

You quite rightly point out that bankruptcy has some serious downsides. For this reason Banks and indeed most reasonable people are loath to move in that direction unless all other avenues have been explored.

The basic issue here seems to be a 30K debt. I would be very surprised if both parties could not hammer out an arrangement that was mutually acceptable.

I for one, given the size of this debt would be kicking myself for years to come if I had sat on my hands to the point where I became bankrupt over a debt that could likely be put on the backburner for something like $10 a day.

For these reasons I still advocate the recommendations made by Fish and Finn

[Disco Dan]

it is my understanding that the debt was sent to Baycorp for collection, and a payment method of $10 or so per week was created - the Bank has deemed this too low an amount and is seeking collection of total amount through the courts; thus forcing the only other avenue for my friend into insolvency.

[Ixion]

Referral to the court does not necessarily imply bankruptcy. Especially for a relatively trivial sum. However, this does suggest there may be more to the story than is apparent.

[Jimmy B]

Referral to the court does not necessarily imply bankruptcy. Especially for a relatively trivial sum. However, this does suggest there may be more to the story than is apparent.

Agreed Ixion sounds like it gone to the next stage hence Baycorp but still not a done deal.

I still recommend that your friend contacts the Bank urgently, they will be able to call Baycorp off if they can sort out an arrangment, but given past performance it is unlikley that he will do so and he will go down.

Sounds like your Mate must have been ingnoring the Bank for quite some time.

Goodo

JB

[Scouse]

it is my understanding that the debt was sent to Baycorp for collection, and a payment method of $10 or so per week was created - the Bank has deemed this too low an amount and is seeking collection of total amount through the courts; thus forcing the only other avenue for my friend into insolvency.Im not fucking suprised the bank says no to $10 per week on 30K, that is a pathetic offer just tell your mate to stop being a Bluger and pay his debts

[Karma]

it is my understanding that the debt was sent to Baycorp for collection, and a payment method of $10 or so per week was created - the Bank has deemed this too low an amount and is seeking collection of total amount through the courts; thus forcing the only other avenue for my friend into insolvency.


Yeh... $10 per month... thats gonna take about 57 YEARS to pay off, and that's assuming no interest. Tell ya what mate, lend me $30 and I'll pay you back at 1c per week, cos that's what we're talking.

[jrandom]

Yeh... $10 per month...

No, the amount mentioned was $10/day.

At 10% compounding interest, that pays off a $30K debt in about 17 years. Not too flash, but then again, that's shorter than the majority of mortgage lending.

Doubling the payments to $20/day pays it off in just over 5 years (assuming 10% interest again).

I realise that a higher interest rate would probably be involved here, but I'd be very surprised if something couldn't be worked out. Personally, in this debtor's position, I'd much rather work an extra 10 hours a week for 5 years than go bankrupt.

[Mom]

I'd much rather work an extra 10 hours a week for 5 years than go bankrupt.

You and me both friend......it is a big step to go bankrupt, the implications are far reaching and last one hell of a long time. Been a few years since I worked in a bank, but they dont normally take that kind of action if it is a straight forward debt. There must be more to this than meets the eye at present. Whatever, as others have said for a $30K debt a better solution should be able to be worked out......."talk to them" seems like good advice. If there are other debts hanging around (in my experience there usually is) a quick trip to Citizens Advice to get the number of his/her nearest NZ Budget Advice Service will truely sort this out for all concerned.

[Toaster]

Does anyone have any experience and/or knowledge in this field?

A close friend of mine is being forced into insolvency and cant afford financial advice etc.

We are talking about a good 30 grand and the solicitors client is a very large bank!

Giz a PM with more detail dude.

[Donor]

Im not fucking suprised the bank says no to $10 per week on 30K, that is a pathetic offer just tell your mate to stop being a Bluger and pay his debts

What's wrong with that?

If it's an acceptable figure to our justice system to impose on some little teenage scrotum who has stolen/maimed/killed to make "reparations" then what's wrong with allowing it for someone who has done less?

Same goes for whether it's per week or per month, and is it not better to be seen to making some attempt at making amends to the financial giant?

[Winston001]

Talk to the bank. $10/day doesn't sound entirely unreasonable but they'll probably think he is having them on. He has the right to be heard at a bankruptcy hearing and if he can convince the judge there is a reasonable prospect of payment, he'll be ok. But $10/ on a debt that size isn't going to do it.

Threatened bankruptcy is a tactic used by creditors to see whether a debtor really can get some money together. You'd be surprised how many people "suddenly" find the money, or at least a lump sum, to avoid bankruptcy.

Sometimes bankruptcy is the only option which is a lose-lose for everyone, but it does result in a cleanish slate. Not good for the credit rating though.

[Flyingpony]

Interesting how the bank demands repayment of this 30k debt, yet the Government will allow people to do several hundred hours community service work to clear their 30k debt worth of speeding tickets.

Though, I guess 'speeding tickets' are not real money because if the officer/camera didn't catch you, then the offence wouldn't have been recorded, whilst a bank, gave cold hard cash from their equity fund.

[The Stranger]

Hey DD, would you mind changing your avatar please. It's fucken distracting and makes it hard to focus on the thread.

[Steam]

Hey DD, would you mind changing your avatar please. It's fucken distracting and makes it hard to focus on the thread.
Yeah, I agree. it wouldnt' be so bad if the frame rate was faster.

I guy I know from University went bankrupt to get rid of his student loan. He borrowed the maximum for four years, took his credit cards and overdrafts to the max, got a personal loan for about $30,000, bought a car on finance, etc, and then when he finished his degree he declared bankruptcy and it all disappeared. It was about $70,000 in total I think.
His friends were all pissed off at him for giving students a bad name, but also jealous because they all stilled owed $40,000 or so.
He spent his two years or whatever in europe travelling around, and came back here and now has a house, it seems he got away with it with no real lasting effects, his credit rating mustve been ok, otherwise he wouldn't have gotten a mortgage?
Interesting stuff...

[Winston001]

Interesting. There are certain protected debts which are no written off by bankruptcy. Child Support arrears and Court fines. I thought Student Debt was one as well but supposedly not.

[geoffm]

Interesting. There are certain protected debts which are no written off by bankruptcy. Child Support arrears and Court fines. I thought Student Debt was one as well but supposedly not.

I didn't think you coudl go overseas while bankrubp either. I guess he must have planned it to get out of town during some small window of opportunity.
Lots of property developers pull this lark as well. In the US they call it the "carwash"...
Geoff