Is there a stigma to being declared bankrupt with personal insolvencies so prevalent?

Answer 1

no

Answer 2

The stigma lies with the word and not the deed. If those made or declared bankrupt have reached that point in their lives, then it becomes the only way out for many people and actually allows them to start again, albeit having gone through a sobering experienceof being declared bankrupt.
It is not an easy process. You have to fill in a lenghty form with all your personal financial details laid bare. You have to explain in detail why you are not able to meet your debts. You have to list your assessts. You actually have to pay CASH to declare yourself bankrupt, I think it is £475. How ridiculous is that!
Then you have to go in front of a judge and explain again why you cannot meet your debts. Remember, this is not an automatic process. You have to EXPLAIN and be JUDGED why you are in this situation. The judge has the power to either make it happen or to decide that you are not actually bankrupt and then you would have to go away and find some other solution to your financial problems.
If you are judged bankrupt it doesn't stop there. You have an interview with the Official Receiver. Your entire financial life becomes frozen. Your finances are scrutinised to determine, again, how this happened. Your assessts, if you have any, can be sold to pay your creditors. You are allowed to keep certain items, such as tools of your trade or a car, if it is cheap, that you use in connection with your work. Anything of high value can be seized and sold, especially if you have a house. Your home may no longer be yours.
You can have access to a basic bank account. There are only 2 banks that give accounts to bankrupts and they have basic facilities, certainly no credit. They are no more than facilities to pay your wages into. You receive a zero tax code, your tax goes to the Official receiver. Chances are, if you are trying to hide your bankruptcy, your payroll department, and subsequently your employer, may get to know. Also, notices appear in your local paper and some London papers, to alert creditors.
The official receiver then administers your finances and watches your account. Depending on your working situation, if you are working and have a reasonable salary, the Official Receiver is entitled to determine what you spend on essential outgoings and is also entitled to 50% of what you have left over at the end of the month, to repay your creditors. They also set the length of time you remain a bankrupt, i.e. 6 months or 12 months or longer, depending on the scale of your debts. The Official Receiver can also delve into all of your financial transactions to determine if you have spent a lot of money recklessly and have declared yourself bankrupt to rid yourself of the debt.
It is a sobering and ongoing experience, so the stigma almost doesn't count because the whole sorry affair outweighs the stigma........

Answer 3

It's not something you want to talk about to people who have never had financial problems. They can be very judgemental as folks on this page have so ably demonstrated. You will also have to pay big interest on any major purchases you make in the future. It may wind up costing you more than you will save. On the other hand you will have no trouble obtaining credit cards. Card companies know that once you have filed for bankruptcy you can't do it again for seven years and you are the customer of their dreams. Bankruptcy is an emergency measure that can help you to save your home or your business but it should not be employed frivolously to get out from under a few thousand dollars you don't feel like paying. I've known people who have done that and they regretted it.

Answer 4

The stigma is people should pay their own damned bills like the rest of the us that pay taxes and support sorry assed individuals that declare bankruptcies.. Bring back the poorfarms send people who declare bankruptcy to work farms so they can pay off their debt to society.

Answer 5

The stigma isn't so much from society but from places where you seek credit next. It makes it really impossible to get a decent car or home loan afterward, because you've basically proven yourself to be a bad risk.

Answer 6

No - the best thing is that with changes in the law - you can't have any more credit and must pay your bills. Used to be you got off without paying and it took a while to rebuild credit. Banks could write loss off on their taxes and we paid for you. Now if you file - banks can't write it off and YOU are required to pay and won't get more credit for a long long long time and maybe never. So - now you must think before you charge.

Answer 7

Yes, there is a stigma. Most people filing bankruptcy are just deadbeats that don't want to pay their bills. Just because lots of people do it does not make it OK

Answer 8

What evokes me to be my own superb is understanding that I certainly have been blessed with wonderful opportunities that weren't afforded to my mom and aunt. staring at them having to stay a 2d cost life because of sheer fact they weren't afforded an identical opportunities that i'm (residing in a familiar international united states of america and so on) evokes me to benefit from my life and to no longer waste those opportunities. I in many cases think of that it is remarkable how the place you're born could have such an effect on your life. For me in my view, only being born in Australia has allowed me to pursue and attain such a number of issues that ought to probable be accomplished a million million cases greater helpful by using somebody else in yet another united states of america who has only no longer been given an identical opportunities/opportunities. It somewhat makes me sense humbled and evokes me to benefit from my solid fortune.

Answer 9

It is less now than 30 years ago because young people
couldn't give a rats *** about what other people think about them.

But it will certainly hurt your ability to get a loan for about 7 years.....

Answer 10

Yes!

Answer 11

Not much, unless you are wiping out debt owed
to friends or family.