Personal Insolvency Agreement - Is it fair?

purplecow1977

I know of a person who has gone this route to wipe out debts owed to various business. Nothing too big (that is known).

Is it fair? This person has the latest upgrades with phones, constantly buying machinery etc and has sold assets worth 15-20k in the last few years. It is not felt but some people that know the situation that it is fair and 'why should any of us bother paying our bills' has been uttered.

Well, is it fair?

How common is it?

My own opinion - if someone is genuinely struggling and has made genuine attempts to repay what they owe, or at least partly, warrants some help.

Otherwise? No.

(Is it ultimately the taxpayer who picks up the pieces?)

BornToKill

It's legal, and normal in most Western societies. As to how common, there were about 550 cases last year, and 450 bankruptcies. Its not possible to get one without having your finances poured over. Fairness is subjective.

MarkAnthony

I've the displeasure of a company law assignment. I've learnt the etymology of the idiom "To wipe the slate clean" turns out the babylonians had insolvency - who knew.

(PS This is not my assignment just the sort of crap you end up engaging in when you suffer from terminal procrastination.)

Ultimately it's the consumer that picks up the pieces but then business should be careful who they lend too. IIRC it's extremely difficult to discharge debts to the revenue. That said limited liability companies go down in flames every day of the week owning revenue money I would imagine.

BornToKill

MarkAnthony wrote: »

turns out the babylonians had insolvency - who knew.

The Hammurabi code is surely not unknown?

http://www.humanistictexts.org/hammurabi.htm#_Toc483361264

Pat Mustard

purplecow1977 wrote: »

Well, is it fair?

It's a lot fairer than the previous system, where there were no personal insolvency arrangements and bankruptcy used to last a minimum of 12 years and possibly for life.