I saw this extraordinary post from the housepricecrash.co.uk forum....
Last night, I met up with a friend who left Uni 2001 with loads of debts and not just student loans. He had overdrafts with 2 banks, credit cards maxed out and had a car on finance that was subsequently repossessed.
Not deterred he took out even more debts for holidays (snow boarder) and got another car on finance. In 2004, he declared himself bankrupt and went through the procedure of the being bankrupt. He couldn't even get a bank account without telling the bank he was bankrupt and so they wouldn't open an account for him.
Eventually he got his salary paid onto a prepaid card and his bankruptcy came to end last year. Officially discharged. He got his credit file and he had a clean slate, thanks to some rather shady lane companies.
Yesterday he turned up at the pub in a brand new Mercedes ML320 (4 wheel drive). Very nice by the way. He also has a wallet full of credit cards and debit cards and is back up to his old tricks.
I had to ask him, didn't he learn the first time and replied, "Yes, run up as much debt as you can because the banks are falling over themselves to give it to you, then got to the court and declare yourself bankrupt and 3 years later, start all over again".
I said, "Don't you see anything wrong in what your doing ? " He replied, "Its just a game and if he didn't do it someone else would".
I found later in the conversation that he had taken out a £75,000 loan and that he intends to spend like mad. You have to ask yourself, is there a way out of this financial crisis or are we just propping up a system that is so very clearly open to abuse.
Help me out here; how could someone who is bankrupt get a £75,000 loan?