Bankruptcy in the US
Originally Posted by Indi129
(Post 12768479)
I know credit card debt doesn’t follow you across the pond but does anyone know if this applies to personal loans from a small US only bank? |
Re: Moving to U.K. from USA with existing loans?
Originally Posted by UkWinds5353
(Post 12772123)
If the debt is a sizable amount have you considered wiping it out with a bankruptcy? That would give you a fresh start and peace of mind that the debt is dead. Just remember you can't include student loan debt in bankruptcy. A bankruptcy usually cost about $1000. A chapter 7 can make sense if you aren't able to pay back your debt and if you don't have any real assets(home, bank accounts ect depending on the state you live in. In Florida you can go chapter 7 despite owning a home and car. I know a person that owns a four million dollar home and was able to wipe out all his debt. Hope this helps.
UK folk do not jump into bankruptcy like Americans do. |
Re: Moving to U.K. from USA with existing loans?
Originally Posted by UkWinds5353
(Post 12772123)
I know a person that owns a four million dollar home and was able to wipe out all his debt.
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Re: Moving to U.K. from USA with existing loans?
Originally Posted by spouse of scouse
(Post 12772245)
:blink: Why wasn't he made to sell his home and get a cheaper one, so that some of his creditors could be paid something? Or even better, voluntarily do that as a matter of morality? That's one seriously f'd up law that allows that.
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Re: Moving to U.K. from USA with existing loans?
Originally Posted by spouse of scouse
(Post 12772245)
:blink: Why wasn't he made to sell his home and get a cheaper one, so that some of his creditors could be paid something? Or even better, voluntarily do that as a matter of morality? That's one seriously f'd up law that allows that.
Florida is the only state in America where if you fall on hard times and lose your source of income, and own your home outright you do not lose the dwelling you reside in if forced into bankruptcy. That law would not protect any additional bank accounts or property you might own. You're also allowed to retain one vehicle but with stipulations. If the home you live in is valued at fifty million dollars that home is still protected under the Florida bankruptcy laws. The associate I know lost his company but because he resides in Florida his home was not touched. But keep in mind that in all fifty states most pension plans are exempt from seizure. Not surprisingly a lot of millionaires live in Florida. Also keep in mind that Florida's bankruptcy laws pertain to a dwelling lived in but paid for with legal funds. You can't build wealth by illegal means and have that paid off property protected by law. |
Re: Moving to U.K. from USA with existing loans?
Originally Posted by Jerseygirl
(Post 12772249)
Americans seem to declare bankruptcy at the drop of a hat...that is one of the reasons why they do.
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Re: Moving to U.K. from USA with existing loans?
Originally Posted by UkWinds5353
(Post 12772285)
The United States is a country that was established from the very beginning of our Union with every individual state having the legal right to decide it's own laws up to a point, providing those laws don't trump federal laws. Example, New Jersey has the right to set up Casinos and allow legal gambling even if the neighboring state has in place laws that police the behavior of their citizens. Maybe that state's majority population voted to protect it's citizens from acts or behavior that they consider not acceptable.
Florida is the only state in America where if you fall on hard times and lose your source of income, and own your home outright you do not lose the dwelling you reside in if forced into bankruptcy. That law would not protect any additional bank accounts or property you might own. You're also allowed to retain one vehicle but with stipulations. If the home you live in is valued at fifty million dollars that home is still protected under the Florida bankruptcy laws. The associate I know lost his company but because he resides in Florida his home was not touched. But keep in mind that in all fifty states most pension plans are exempt from seizure. Not surprising a lot of millionaires live in Florida. Also keep in mind that Florida's bankruptcy laws pertain to a dwelling lived in but paid for with legal funds. You can't build wealth by illegal means and have that paid off property protected by law. |
Re: Moving to U.K. from USA with existing loans?
Originally Posted by spouse of scouse
(Post 12772292)
I understand that different states have different laws, and no one should be left homeless through bankruptcy, but I maintain that someone like this being able to wriggle out of paying their debts to others, who quite conceivably don't enjoy the luxury of a 4 million dollar home, is dead wrong and immoral. The law certainly is sometimes an ass.
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Re: Moving to U.K. from USA with existing loans?
Originally Posted by UkWinds5353
(Post 12772309)
I couldn't agree more about the morality issue. But the good people of Florida has decided they want this particular bankruptcy rule to remain the law of the land as a added protection.
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Re: Moving to U.K. from USA with existing loans?
Originally Posted by spouse of scouse
(Post 12772310)
Well I guess it protects some people.
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Re: Moving to U.K. from USA with existing loans?
Originally Posted by UkWinds5353
(Post 12772327)
It protected his four million dollar home.
. So I can't blame my associate for protecting his best interest. He would be a idiot had he not. It's not my place to blame or not blame individuals, who are quite entitled to act within the law and their own consciences. I can and do comment on laws that I believe are unfair, both in my home country and in others. |
Re: Bankruptcy in the US
Companies use bankruptcy as well, nearly every US airline filed for bankruptcy at some point between 2001 and 2011, mostly to rid themselves of debt accrued due to 9/11 and legacy pay and benefits to employees, and force creditors into renegotiating debt, getting out of aircraft leases etc as one example of corporate restructuring bankruptcies.
I do agree if one owns a modest home they should be able to keep it if they go bankrupt, but if someone is living in a home worth millions, they should be forced to sell it and downsize. Look how many times Trump or his companies have gone bankrupt. I went bankrupt once, but I had no bank loans or credit card debt, no debt at all, just happened to get sick and had a crappy insurance company who decided they were not going pay the bill. Lenders in a way are part of the problem, it was maybe 6 months after my discharge that I would get 3+ a day sometimes from various lenders with various offers, mostly from car dealers, but a few from shady mortgage places. Almost seemed in a way it was easier to get credit after bankruptcy than before. I opted for a secured credit card using my savings account as collateral. |
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