To wonder what it would be like to obtain the maximum amount of credit possible, go wild go on loads of holidays or travel the world for a year, then claim bankruptcy

[Lardlizard]

I’m sure I’ve got some sort of self destruct urges
I’m suprised I manage to fight the urges I feel !

But you see these celebs going bankrupt etc yet they still seem to have plenty of money

I don't understand bankruptcy.
Do they take everything off you and pay off the debt or just write it off?

It's a bit of both @Christmasgravy. They allow you to have certain assets, but take others off you. So if you own a house, they would order that to be sold to pay off some of your debts. You are allowed to keep a car as long as it's under a certain value (it used to be around £1000 but that was several years ago so it might have increased).

Such reckless actions would result in a Bankruptcy Restriction Order too

The thing will celebs is that they can find the type of work after going bankrupt that pays enough to buy a house outright (as it would be hard to get a mortgage/rent with that on your credit file). E.g. do a big panto, get a book deal, go on a reality show. You or I would never have the chance to land £600,000 in one go!

Oh never heard of, Bankruptcy Restriction Order

That’s a good point Annbk

Basically they take everything off you and pay the debt as much as they can - not everything but most things as a pp has said.

They also look into everything you have done / spent in the year (or more!) preceding the bankruptcy and you can get into a lot of trouble if you are hiding anything.

Plus as has been said, it’s not necessarily just a year after when you can’t get credit. You could have a BRO for much longer and lenders themselves may refuse to end to you - especially mortgage companies!

My ex did this ... lost his house the first time but they let him keep his car as it was argued he needed it for work. So after that he’d lost the only asset he had anyway, 3 years later he was able to get credit again and did the same thing, maxed out then claimed bankruptcy again. He’s now doing the same thing for a 3rd time apparently

If you are found to be reckless they can extend the bankruptcy to 15 years

Do they make you sell the house if you have children? Downsize?

Yes, they would. It isn’t YOU selling the property because control of the property transfers to the Official Receiver when you are made bankrupt. What they are doing is to realise the equity to distribute to creditors. Selling the house is one way to achieve that but you could also have a willing friend/relative stump up the cash to buy out your interest in the property (often happens with a jointly owned property).

You will also have to pay towards your debts for three years after the bankruptcy, and they aren’t very generous with what they allow you to live on. It isn’t a simple as dumping your debt and moving on.

Bankruptcy wrecks your credit for six years, if you get a bankruptcy restrictions order it would potentially be longer (max BRO is 15 years but you have to practically have murdered someone). Many lenders will ask if you’ve been bankrupt in the last 10 years and will treat you unfavourably. Some employers won’t employ you if you have been bankrupt. You could lose the job you have currently.

There are bankruptcy criminal offences too - mostly for hiding assets and other dishonesty.

I don’t think I’d enjoy the year of travel and treats for worrying about the upcoming bankruptcy.

I knew someone who did something similar. He was very young (under 30), single, with no dependents and had a terminal illness so he maxed out every possible borrowing resource available to him and lived the life of a king for his last year knowing that when he died his creditors would have to write off his debts. Only it wasn’t his last year, he lived on for another 18 months, bombarded with final demands, summonses, court dates, bailiffs etc whilst he gradually got weaker and iller. The outcome was the same eventually but it made his last months even more unhappy than they would have been without this.

If you're a home owner it's losing your safety net for a quick thrill moment. Doesn't seem worth it. If you are renting though... The issue though is the risk of not passing the credit check and therefore struggling to get decent accommodation.

Of course, if your OH can rent on their own and then move you in, or you rent from family members...

Hen is left the matter of morals because some people/organisations won't be paid for services they provided. Easy to find reasons why they don't deserve payment but if you chose to put yourself in this position, nothing can really excuse what is really stealing.

@Lardlizard ooh yeah, that would be so fun. I would defo book first class flights to New Zealand and LA. Id stay in five star hotels and order all of the room service I could eat. :D how about you?

Id use the money to travel around the world (not just stay inside five star hotels eating I mean) haha. The things you could see and do if you weren't worried about having to pay the money back... ah, one can dream hehe.

I would do on a trip around the world first class and stay in outrageously nice places eat the finest food drink loads shop loads
Take in a safari and stay lux treehouse

Bankruptcy is not much fun. You are allowed to keep household items of low value though as pp have said you might have to sell a house or expensive assets, including art, jewellery, antiques etc. I had a few shares which I had to sell and the money went towards my debt. They let me keep my miniscule pension, but that's not always a given.
You have to work out the minimum costs of what you need to live on, and there are maximums for how much you can allow. If you earn more than, I think, £100 over this amount, then you have to pay iirc 50-100% of this to them (they take it through paye) - This lasts for up to 1 year, until you are discharged, though if they think you deliberately went into debt to go bankrupt, they can extend this I think. There are also restrictions on holding certain roles on boards, or having certain jobs. I wouldn't want to do as described, knowing what bankruptcy is like, the repercussions are not worth it imo

Not sure I’d do it, but I love your threads Lardlizard

Why thank you, dirtyrottenscoundrel ! Just the ramblings in my mind !!

Do it! Then leave the country and start from scratch elsewhere....

Not sure I fancy living abroad