Would you judge someone if you found they were bankrupt?

[rabbit12345]

This question. How would you/would you judge someone who had applied for bankruptcy?

Firstly as a friend or an interviewer.

I know aibu for not giving further details but I wanted a response based on the bankrupt fact not the reasons why etc..I will explain why though after considering the responses.

So the ^ are for you OP

I think in general the UK is pretty poor at educating people about credit , finances etc , so a lot of people wait until things really at crisis point before seeking help or advice , when they discover their options are severely limited .

So in answer to your question OP , no I wouldn't judge someone simply for having no other option .

Frumpty there is nothing to stop anyone researching themselves, there are plenty of resources online, on the TV and in libraries

Education isn’t just a one way street with somebody teaching, learning should be about people exploring for themselves and not expecting other to teach them everything like a cuckoo

Churchill himself was bailed out many times.

I wouldn't, but I've been there myself, all triggered by being made redundant the day after I bought my first property. Insurance was invalid because it all happened so quickly, I got no redundancy money because I hadn't been in my job long enough, and I was out of work for an awful long time after that. My family isn't well off and couldn't help. Couple that with domestic abuse, including financial, and it was a disaster. Accepting that it wouldn't get better and taking the hit was the catalyst to getting back on my feet, out of the relationship, and into a much better place. I'm now very happily married, have a family and, a well paid career.

You do what you have to and move on. It's embarrassing, but that is outweighed by the utter relief of not having it all hanging over your head.

Ignore the nasty comments on this thread, some people just have no idea what it's like.

There's so much ignorance on this thread.

Companies in the UK cannot go bankrupt, they are placed into administration or liquidation

All assets are considered so yes the Official Receiver may well liquidate your pension depending on the type and value

There is no difference between self employed and employed people going bankrupt. It is not more ok for self employed people. In fact the creditors are usually better off if someone is in employment as they have a steady income and will probably have to contribute back to their bankruptcy estate for three years to cover costs and pay a dividend to creditors

All bankruptcies last a year, after which you are automatically discharged

If someone is undischarged for more than a year it means they haven't done something required of them (usually declaring or relinquishing assets) and the Official Receiver/Trustee has applies for their automatic discharge to be suspended until the bankrupt co operates

There is such a thing as a Bankruptcy Restrictions Order, which is used to extend the restrictions you have whilst undischarged for up to 15 years. But you still become a discharged bankrupt after a year if you are subject to one of these. These are used when people have done things wrong either before or during their bankruptcy.

People are also sometimes prosecuted if they have committed Insolvency offences before or during their bankruptcy (usually hiding or disposing of assets)

gingergenius I know pension pots are exempt. I am saying that above a basic level they shouldn’t be. They sometimes represent more value than the debtor’s home and would give a better outcome for him he creditors.

I had to go bankrupt a few years ago, owned a house with my ex, who decided to make himself bankrupt and send the keys back to mortgage co but due to no SOKA being completed it took 2 years for the house to be repossessed. Due to a new baby, I was unable to make payments to the debt so my only option was to go bankrupt, something I am not proud of! Only a handful of people know, if circumstances had been different, I would not have went down that route.

I wouldn't judge. This is something we are considering at the moment but I am scared we will lose our house. It's been a truly shit year for us. I hope things get better for you soon rabbit

So Andreofgg the taxpayer will have to keep me when I’m older because my pension pot has been handed over. That really makes sense.

OP please call Payplan if you haven't heard of them they are a fantastic not for profit debt management organisation who offer impartial advice and would go through all your options with you. There might be a less severe option available to you rather than the bankruptcy . Best of luck. Ps I wouldn't judge -I've been close myself too at times and I work in public sector and it's not something that we'd ask in an interview . Best of luck xxx