New bankruptcy Legislation 12 years to 3

ronan45

Hi All

I was wondering about this new legislation going through at the moment. Minister for Justice Alan Shatter is now proposing that individuals will be able to emerge from bankruptcy after three years rather than the current 12.

Does this mean that for instance a property investor can hand back his 10 sets of keys for his 10 worthless apartments and walk away scot free in 3 years?

Does this mean the average Joe can ring his bank and tell them he is not paying back his extension loan and Mortgage and 3 visa cards back?

If the new scheme made it possible for someone with €200,000 of negative equity to hand back the keys and walk away debt-free in three years, it could be used by tens of thousands of people.

Where is this money coming from?

I see even The DJ Tony Fenton is filing for Bankrupcty. Is there something Im missing here?
http://www.independent.ie/national-news/dj-fenton-to-file-for-bankruptcy-with-euro750000-debts-2927101.html


http://www.rte.ie/news/2011/1107/debt.html
http://www.independent.ie/national-news/new-bankruptcy-plan-sparks-bank-mortgage-fears-2927384.html

Andrew33

You might emerge debt free after 3 years but I doubt any financial institution would touch you with a barge pole even after that period.
Then again, that might not be a bad thing.

the groutch

yep, it's another back door to debt forgiveness that FG were hoping they could do on the QT

ronan45

Thats grand! 10K Limit on my visa think Ill run it up. WOO
Get Joe Public to pay for it
And as for my property investor mates... Well they are chuffed ! Meeting them for a bottle of Moet this weekend to celebrate!


Sweeeeeeeeeet Carolineeeeeeee

fliball123

ronan45 wrote: »

Thats grand! 10K Limit on my visa think Ill run it up. WOO
Get Joe Public to pay for it
And as for my property investor mates... Well they are chuffed ! Meeting them for a bottle of Moet this weekend to celebrate!


Sweeeeeeeeeet Carolineeeeeeee

I dont know if this is good or a bad thing I get the feeling that the tax payer is going to be bent over , lubed and pummelled

Anyone

It's going to mean a lot of people will not be able to get credit in the future. And I dont just mean people with bad credit.

seamus

ronan45 wrote: »

Does this mean that for instance a property investor can hand back his 10 sets of keys for his 10 worthless apartments and walk away scot free in 3 years?

"Scott free" is putting it a bit glibly.
More correctly, the proceedings will begin, take about 2 years to get to court, another year to resolve, and then the bankruptcy period of three years begins. That's a long period of hiding from creditors, getting services cut off and being constantly without any spare cash whatsoever.

During the 3-year bankruptcy process, practically everything that you have will be taken and sold and a big chunk removed from your salary.

So it's not a friendly, "Here's the keys, see you later", while you drive off with a removals truck in tow.

It's a few years of complete and utter pain, and at the end of it you walk away with the shirt on your back, probably a small car towing a small trailer containing everything you own (i.e. anything which cannot be sold for money), no savings whatsoever and no chance of getting credit from anywhere for at least five years.

Debt forgiveness? Perhaps. But it's not going to be an easy choice.

Banks may run scared though and it might prompt them to tackle the problem. So where someone's in severe negative equity, the bank might be more inclined to agree better payment terms or write off a small part of the negative equity to prevent the mortgage holder from declaring bankruptcy.

Seth Brundle

Are they actually going to bring it in or is it more of a threat to bring it in to help concentrate the senior bankers minds?

ronan45

kbannon wrote: »

Are they actually going to bring it in or is it more of a threat to bring it in to help concentrate the senior bankers minds?

Kbannon, well it seems to be gaining momentum mate. Someone will have to pay for this... I fear its going to be the average Joe :mad:


http://www.independent.ie/national-news/joan-burton-and-banks-clash-on-3year-bankruptcy-deal-2927997.html

murphaph

fliball123 wrote: »

I dont know if this is good or a bad thing I get the feeling that the tax payer is going to be bent over , lubed and pummelled

There's no money for lube-spent it on increments

Armin_Tamzarian

seamus wrote: »

"Scott free" is putting it a bit glibly.
More correctly, the proceedings will begin, take about 2 years to get to court, another year to resolve, and then the bankruptcy period of three years begins. That's a long period of hiding from creditors, getting services cut off and being constantly without any spare cash whatsoever.

During the 3-year bankruptcy process, practically everything that you have will be taken and sold and a big chunk removed from your salary.

So it's not a friendly, "Here's the keys, see you later", while you drive off with a removals truck in tow.

It's a few years of complete and utter pain, and at the end of it you walk away with the shirt on your back, probably a small car towing a small trailer containing everything you own (i.e. anything which cannot be sold for money), no savings whatsoever and no chance of getting credit from anywhere for at least five years.

Debt forgiveness? Perhaps. But it's not going to be an easy choice.

Banks may run scared though and it might prompt them to tackle the problem. So where someone's in severe negative equity, the bank might be more inclined to agree better payment terms or write off a small part of the negative equity to prevent the mortgage holder from declaring bankruptcy.

If this is what gets implemented then I'm all for it.
Sounds far better than that debt forgiveness nonsense that was recently being touted.

ronan45

murphaph wrote: »

There's no money for lube-spent it on increments

bejebus this is gonna hurt then ! How can we write off more millions that we dont have?

Fair enough a genuine struggling family, i agree help these... but some guy that took a risk on property investments?