Huge writedowns for all, woohoo. The new insolvency deals.

take everything

Maybe this is misreported by the Indo, but on the face of it i find this shocking.
The example given is a couple on 100k between them unwilling to pay off a mortgage of what seems to be 400k.
And so they have nearly quarter of a million written off.

These people as far i can see are still working.
Maybe it is Indo misreporting as i say but I'm baffled by this.

Sir Humphrey Appleby

take everything wrote: »

Maybe this is misreported by the Indo, but on the face of it i find this shocking.
The example given is a couple on 100k between them unwilling to pay off a mortgage of what seems to be 400k.
And so they have nearly quarter of a million written off.

These people as far i can see are still working.
Maybe it is Indo misreporting as i say but I'm baffled by this.

They had a family home, and two buy to lets.
They have forfeited all three houses and have been allowed €4,800 per month from their income as living expenses, to include €1,200 childcare and €1,200 rent.
Widely discussed on radio this morning , Conor Pope et were all on.

foxyboxer

Common Sense prevailing finally.

Iwasfrozen

foxyboxer wrote: »

Common Sense prevailing finally.

Why is it common sense? The government is financing the banks, the government absorb the loss.

MadsL

foxyboxer wrote: »

Common Sense prevailing finally.

Commen sense would have been to stay the f8ck out of the buy-to-let market unless you knew what you were doing.

Fecking amateur "property developers" with no clue about the business were some of the worst debt magnets in the CT days.

SEPT 23 1989

Iwasfrozen wrote: »

Why is it common sense? The government is financing the banks, the government absorb the loss.

People are frozen in debt

there will be no proper recovery unless these people can spend money in the real economy

weisses

SEPT 23 1989 wrote: »

there will be no proper recovery unless these people can spend money in the real economy

To bad the real economy is abroad ... screwed again

foxyboxer

They have willingly handed back the properties.
They are not left destitute as a result of that decision.

Schadenfreude runs a close second to begrudgery in this country it seems.

Three years on from the bailout and finally we are seeing the banks sit down and address the debt issue.

the groutch

It's not all roses for this couple, even after they come out the other side in 3 years time no credit institution will touch them with a 500ft bargepole.

Hoop66

Until there's another boom, and the banks think they can male a few quid out of them, then it'll be:

"Ah sure, we know you trouble in the past...but you'd be MAD not to buy now"...

Red Pepper

I is gonna get me some debt writedown, that's for sure!

Iwasfrozen

foxyboxer wrote: »

They have willingly handed back the properties.
They are not left destitute as a result of that decision.

Schadenfreude runs a close second to begrudgery in this country it seems.

There will be no recovery while the bank has to take on devaluated property. They made a bad decision, their home should have been taken.

Daith

Hoop66 wrote: »

Until there's another boom, and the banks think they can male a few quid out of them, then it'll be:

"Ah sure, we know you trouble in the past...but you'd be MAD not to buy now"...

Given that the Government seem to want to manipulate the property market I'd say tax breaks for defaulters wouldn't be amiss.

Banjo String

Iwasfrozen wrote: »

There will be no recovery while the bank has to take on devaluated property. They made a bad decision, their home should have been taken.

The banks made bad decisions too lest we forget.

Iwasfrozen

Banjo String wrote: »

The banks made bad decisions too lest we forget.

And they should have been allowed to fall too.

Banjo String

Iwasfrozen wrote: »

And they should have been allowed to fall too.

Oh I agree.

up for anything

Iwasfrozen wrote: »

There will be no recovery while the bank has to take on devaluated property. They made a bad decision, their home should have been taken.

It was, or at least they gave it back.

One family on a combined €100,000 a year managed to get €233,000 written off from their home mortgage, buy-to-lets and credit card debts.

But they have surrendered their family home, along with the investment properties.

darkpagandeath

Banjo String wrote: »

The banks made bad decisions too lest we forget.

Yeh I'm off back into the casino i lost my money in I'm going to get them to give me my money back, And if they don't sure i can still keep my house i used as collateral.

foxyboxer

Iwasfrozen wrote: »

There will be no recovery while the bank has to take on devaluated property. They made a bad decision, their home should have been taken.

Their home was taken. The bank in question has taken it.
But they are allowed to remain living in the house.

anncoates

SEPT 23 1989 wrote: »

People are frozen in debt

there will be no proper recovery unless these people can spend money in the real economy

Yes that's by the by, but the pressing issue here is the smug pontification economy is in need of urgent recapitalisation in AH every day.

December2012

foxyboxer wrote: »

Their home was taken. The bank in question has taken it.
But they are allowed to remain living in the house.

Which is better than having them being housed in social housing paid for by the taxpayers.

Cee-Jay-Cee

I agree that the banks/government needed to put debt write off procedures in pace to try and sort the mess the banks had a huge part in but in think its ridiculous the family are being allowed €4800 a month to live on, they are still better off than the majority of people. I'm not suggesting they should be left destitute and broke but should be made to suffer a little more hardship than they actually are. They are allowed to remain in their home which they no longer own but I'd be willing to bet that they will be able to buy it back in a handful of years time. They were greedy and as far as I can see, have been rewarded for it by the banks.

tin79

CJC999 wrote: »

I agree that the banks/government needed to put debt write off procedures in pace to try and sort the mess the banks had a huge part in but in think its ridiculous the family are being allowed €4800 a month to live on, they are still better off than the majority of people. I'm not suggesting they should be left destitute and broke but should be made to suffer a little more hardship than they actually are. They are allowed to remain in their home which they no longer own but I'd be willing to bet that they will be able to buy it back in a handful of years time. They were greedy and as far as I can see, have been rewarded for it by the banks.

Oh so you want them to suffer I see. That's your agenda. I see it all now.

Menas

tin79 wrote: »

Oh so you want them to suffer I see. That's your agenda. I see it all now.

But it does seem ridiculous that they have more disposable income than most people who are servicing their debts with great difficulty. And the tax payer gets lumbered with the bill if their mortgage is with one of the state owned banks.

In my opinion the process gives too generous a living allowance and acts a little deterent.

darkpagandeath

€4800 pm aint that what a judge spends on whine pm he must think there in supper poverty only giving them that allowance