I know bamkruptcy is a very personal issue but I would like to hear people’s opinions as to whether they would lend money to someone who has:
1. …ever been bankrupt?
2. …recently become a discharged bankrupt?
3. …a current bankruptcy?
4. …mitigating circumstances?
5. …placed themselves in a good current position?Would your decision take into account whether that ‘bankrupt’ repaid all their previous debts that were outstanding when they went bankrupt or do you think it is ok to not pay your debts, take a few years break and then start again?
Robert Bou-Hamdan
Mortgage Adviser12 months out and 20% deposit = first tier lender approval.
mi will consider after 18 months.
obviously someone who pays 90c vs 2c in the dollar is considered more favourably – but not exclusively.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanebrahms, I am asking if ‘YOU’ would lend.
Robert Bou-Hamdan
Mortgage Adviseryeah, i hit enter and thought oops, missed it..to answer the question, yes, but it would be mitigated.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneAnd how would you mitigate?
Robert Bou-Hamdan
Mortgage AdviserMA,
It would depend for me (if I had money to lend- which I don’t) on the circumstances of the person. I believe it is illegal to loan money to a current bankrupt? But for a discharged bankrupt, it would depend on HOW they became bankrupt.
For example, I would see a failure of a small business differently than I would some sort of scam. I know people who had small businesses and did not have debts repaid to them, and they got into a mess, got sick, and voila- bankrupt city.
All bankruptcies are different.
kay henry
I agree Kay.
I met someone from this forum a while ago (shall remain nameless) who did the most amazing thing. They were on the verge of bankruptcy and somehow negotiated their way into a single payment to all creditors which, if I remember correctly, was only about 20% of all monies owing. The creditors accepted this as full payment and there was no Bankruptcy, Part 10 proceedings or other credit defaults which followed.
I still don’t know how that person pulled it off but I know they will be getting a call from me if I ever get in trouble!!!
Robert Bou-Hamdan
Mortgage AdviserI read on an aussie bankrupty site (fred appleton?) that by the time people are thinking about bankruptcy, their credit is often so impaired over years of being unable to repay debts, that bankruptcy can be an option.
A few impairments can be such an impediment to lending anyway, that for some, it can seem an equivalent solution. Thre real problem is the STIGMA, plus things like having to ask permission to go overseas etc- ugh.
kay henry
A very good friend of mine had a nervous break down not so long ago. He disappeared without telling anyone. All we heard was the he was ok but not contactable from his family.
Anyway, when he reappeared 8 months later, it turns out that he went to a ‘farm’ somewhere to recouperate and was advised to declare bankruptcy (poor advice in my opinion) to avoid the stress of his debts. The break down had nothing to do with the debts.
If he had asked his friends for help, a few of us would have happily paid all his debts to be repaid at a later time when he was better. He told me he was too embarrassed to ask us for help or tell us what was going through his mind.
It is quite sad that a temporary mental disease can adversely impact a persons life for so long. He is finding it tough to get anything done now. He can’t sign contracts, can’t travel, can’t work in various fields, and so on.
Surely there is a better way to sort out temporary set-backs without placing flashing lights on someone’s name (who has a legitimate reason) with the likes of Baycorp!!!
Robert Bou-Hamdan
Mortgage AdviserI went bankrupt.
I was bankrupt for 3 years.I repaid none of the debts nor was I asked to repay any of the debts.I was bankrupt because I had debts and no income.Now I have income and no debts.
gf
What was your reason for no income?
Robert Bou-Hamdan
Mortgage AdviserOriginally posted by The Mortgage Adviser:I agree Kay.
I met someone from this forum a while ago (shall remain nameless) who did the most amazing thing. They were on the verge of bankruptcy and somehow negotiated their way into a single payment to all creditors which, if I remember correctly, was only about 20% of all monies owing. The creditors accepted this as full payment and there was no Bankruptcy, Part 10 proceedings or other credit defaults which followed.
I still don’t know how that person pulled it off but I know they will be getting a call from me if I ever get in trouble!!!
Robert Bou-Hamdan
Mortgage AdviserIn the UK, there exists debt consultants who do this for a living. i.e. negotiate settlements like your example above, in order to avoid bankruptcy for there clients.
I’m surprised this hasn’t caught on here yet.
Cheers
The Mortgage Adviser
Veteran Forum Contributor [2828 posts]
Posted 14/05/2005, 10:15:36What was your reason for no income?
I had a dead end job with no prospects.Banks kept throwing cards and loans at me.I was young and had little commonsense and after years of paying them off and paying interest on interest I had enough and just gave up the fight and went on the dole.In reality i probably paid the principal off 10 times over but the fees charges and interest just kept mounting.While I blame myself I also blaim the banks and finance companies.It will never happen again.
Now I have things in order and took a punt on something that paid off .Bankruptcy for me was the right thing to do at the time.gf
Originally posted by upandcoming:
… I also blaim the banks and finance companies.Did anyone twist your arm or was that letter they sent you scary enough to make you think that if you did not accept the offer of finance each time, something bad would happen to you?
It explains a lot about your attitude regarding banks.
Robert Bou-Hamdan
Mortgage AdviserWayne
you are obviously not in SE Qld it is big business in Brissie and the Gold Coast – I wonder why.
Is it all the white shoe brigade wanting to get away.
By the way Yes i would lend to an ex bankrupt and have done so on more than 1 occassion.
Recently approved a loan for a female QC who was married to a builder and had guaranteed his all of his trade accounts as his spouse. When he went belly up and disappeared she was left holding the can whilst still studying and unable to repay all of his debts.
Now fully qualified and earning in excess of $100K could not get any lender to consider the application so we did it and charged a healthy premium and rate. She always pays on time and is building equity as we speak. Subsequently remarried and it is behind her.
Each application should be consider on its merits as it can be the easy way out.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
Richard, that situation is unfortunate and I feel sorry for the girl. It is good to hear she recovered. I just find most situations are the fault of the person declaring bankruptcy yet they try to blame anyone and everyone else – like the banks.
I think a bankrupt should step up and take responsibility for their own mistakes (in most cases) and seek the help they need to remedy the situation instead of taking the easy way out. I also believe those who use it as a tool to escape paying back debt should be severely punished!
The Mortgage Adviserhttp://www.themortgageadviser.com.au
Veteran Forum Contributor [3128 posts]
Posted 17/05/2005, 12:18:38Originally posted by upandcoming:
… I also blaim the banks and finance companies.Did anyone twist your arm or was that letter they sent you scary enough to make you think that if you did not accept the offer of finance each time, something bad would happen to you?
It explains a lot about your attitude regarding banks.
Robert Bou-Hamdan
Mortgage Adviser
I didnt think you had too many brains but now I am certain.If you had read what I wrote you would understand.You are so far up the banks it is a joke.They had a responsibility not to keep lending and while I said I blame myself which I do, I also blame the banks who are entitled to take some responsibility.
As I also said,I am not desperate for finance off anyone but they are too stupid to realize that people change and circumstances change.I am buying my first property(first since bankruptcy) soon for cash.
However I am not a fool.When the bank manager now goes out of his way to speak to me and make a lighthearted joke with me and the loans officer does the same I am fairly certain that the reason for their change towards me is not because I am a good looking bloke but because my bank account is starting to explode.
They can keep their cash as I will never do business with a bank.I will pay cash or go without.
You though need to wake up and rethink your attitudes.gf
Originally posted by upandcoming:I didnt think you had too many brains but now I am certain.
I am not the one who went bankrupt mate. I must have a few more brain cells than you.
If you had read what I wrote you would understand.I did read what you said and totally understand. You are tryin to palm some blame off onto the banks for lending you money and now you are angry at them for not lending you money.
You are so far up the banks it is a joke.They had a responsibility not to keep lending and while I said I blame myself which I do, I also blame the banks who are entitled to take some responsibility.I am not up the banks at all. I just know how to deal with them to achieve desired results. Regarding their ‘responsibility’, I believe that at the time you borrowed money, you were in a position to pay. Are they now responsible for economic condition changes or you poorly running a business or losing your job? The only one to blame is you. Like I said, you didn’t have to accept any offers of finance or even apply for additional finance. No-one held a gun to your head. If you want sympathy, I think you should talk to one of the current affairs shows.
As I also said,I am not desperate for finance off anyone but they are too stupid to realize that people change and circumstances change.If you are not desperate, why are you going on and on about it? Get over it! It is not about them being stupid, they just don’t want to lend to you because of your history. It is their policy so they don’t lose more money on you.
I am buying my first property(first since bankruptcy) soon for cash.Good for you. I want to be the first to congratulate you for turning things around. I am sure you won’t be giving any of the credit to anyone else for your success so don’t try and give the responsibility of your past failures to others. We are responsible for our own situations.
However I am not a fool.When the bank manager now goes out of his way to speak to me and make a lighthearted joke with me and the loans officer does the same I am fairly certain that the reason for their change towards me is not because I am a good looking bloke but because my bank account is starting to explode.
They can keep their cash as I will never do business with a bank.I will pay cash or go without.It seems you are doing business with the banks or they would not know your account balances. By the way, I never called you a fool but am now starting to wonder after you post.
You though need to wake up and rethink your attitudes.Is there something wrong with my belief that there is nothing wrong with the banks or that a person is responsible for their own actions? I don’t see the problem.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksWell obviously if you have an account with them they would know how much is in the account.So saying I must be doing business with them is silly.
Why do I go on about it?It is a matter of principle and because I could grow my business faster with more cash on hand.
Anyway I dont want to argue with you but I have decided now that if banks lend me money now or in the future it MUST be on my terms.I presume they will want them on THEIR terms so it appears we cannot do business.
For example I want to lease a trayback.Maza bravo or similar.They want me to fill out a form giving my pwersonal details and as the company is leasing it I dont think my details are relevant.
I am not desperate for a vehicle so I dont lease it.They lose out on the interest I dont get a new vehicle the car dealer doesnt sell a new vehicle.But I dont need a vehicle.I just thought it would be nice to have one so I have decided to import a vehicle from USA for no other reason then to NOT allow the finance company or bank or car dealer to profit from my business.I would prefer to give my money to a USA based business then a business here that will not do business with me.
gf
You are being totally irrational.
A company costs a few hundred dollars to set up which makes the actual company pretty worthless. It is the trade and assets of the company that has value.
If you had two years full tax returns, the company could buy the vehicle without requiring your personal details. As you don’t have this, of course they will require your personal details.
As for your reason to buy from the US, you do realise that it is far more expensive after the exchange rate and import taxes don’t you? Also, you are not supporting Aussie jobs which means less people with enough money to buy your products.
Wait for your two years to be up and do your taxes and you should not have much trouble.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
You must be logged in to reply to this topic. If you don't have an account, you can register here.
