More Help Coming for The Bankruptocracy

[C. Flower]

They are bust for millions, but still manage to play golf and travel in limos. They are connected, and indebted.

First they had NAMA, courtesy of Fianna Fail, and now Fine Gael is planning to introduce legislation to enable the favoured few of the bankruptocracy to write off their millions of debt.

http://www.rte.ie/news/2011/1003/debt-business.html

Individuals who owe millions of euro are being advised not to enter negotiations with banks until new bankruptcy legislation is enacted.
Personal insolvency experts are advising clients who owe vast sums of money that legislation due next year will allow them to write-off their debts.
The Department of Finance has received the findings from the expert group that has been looking at mortgage and personal debt. This report will feed into efforts to reform the country's insolvency and bankruptcy laws.

One of Ireland's leading insolvency experts told RTÉ News that people in negative equity could not expect debt forgiveness "in a month of Sundays".
Jim Stafford, however, said that new insolvency arrangements would allow people who ran up significant debts on things like development land to settle their debts.

Mr Stafford advises clients who owe between €1m and €700m. He said new bankruptcy laws would effectively represent 'debt-forgiveness' for many of them.

[Captain Con O'Sullivan]

Lesson number one. Never get into debt with a financial institution in Ireland unless its for a sum between £1million and £700million.

Looks like 'partying' is profitable. Also I note this will provide much business for Ireland's emergency services- those brave lads and lasses who man the Law Library at times of national emergencies prepared to risk life and limb to apply an invoice to the wounded.

[fluffybiscuits]

Something I am wondering and perhaps someone could clear this up for me. At the time an offence is committed its tried in a court in a legislation in place at the time. If a person is bankrupt at the current moment in time when they entered bankruptcy would that not mean that the bankruptcy laws now apply and not future legislation? Its times like this I wish I had a business and legal head on my shoulders!

[Captain Con O'Sullivan]

Essentially all bets are off when it comes to those who are regarded as wealthy in Ireland even if the figures in milions after their name is inked in red or black.

For those people the only time they are bankrupt is when they can't pay their lawyers. For the average Joe it is jail for not paying a TV license.

[Captain Con O'Sullivan]

Quinn is a negative billionaire and has been for a couple of years now. I wonder is he still living in that godawful Essex girl's mansion ... he's a good example of a factual bankrupt but who has enough salted away to have that status suspended because he can afford the lawyers.

[TotalMayhem]

Something I am wondering and perhaps someone could clear this up for me. At the time an offence is committed its tried in a court in a legislation in place at the time. If a person is bankrupt at the current moment in time when they entered bankruptcy would that not mean that the bankruptcy laws now apply and not future legislation? Its times like this I wish I had a business and legal head on my shoulders!

Delaying the insolvency/bankruptcy proceedings is a criminal offense in some countries (e.g. Germany, Austria), I don't think this is the case in Ireland, or else Mr Stafford would hardly advise his clients to do exactly that.

[fluffybiscuits]

Nothing mentioned about it in UK legislation from what I can see but still the sheer gall of them. The legislation that is in place at the moment should apply.

[TotalMayhem]

Nothing mentioned about it in UK legislation

It can be a civil and even a criminal offense for directors to allow a company to continue to trade whilst insolvent. However, two new insolvency procedures were introduced by the Insolvency Act 1986 which aim to provide time for the rescue of a company or, at least, its business.

[Sam Lord]

People are being advised to act on the basis of legislation that has not even been drafted never mind enacted.

[Captain Con O'Sullivan]

True. A bit previous isn't it? How do lawyers know whats going to be in the legislation unless they've been told by their colleagues in the Attorney General's department?

Mind you I've had a look at the proposal put forward by the Company Law Review Group which should be hitting the Dail for rubberstamping in the next year and which is clearly authored by IBEC prostitutes of one description or another.

We've had an almost complete collapse in any confidence in corporate governance in the state so the obvious thing to do is let IBEC write some Bill which deregulates some more- or in their catch-all phrase calculated to cut more legal corners- 'cut red tape'.

[Baron von Biffo]

The clamour from wealthy chancers and their champions in the media for 'reform' of the bankruptcy laws was precisely so that crooks could walk away from their debts with the minimum of inconvenience.

It's trickle down economics at its best - the sh!t trickles down to those on the bottom who will be stung for goods and services they provided but will never be paid for.

[C. Flower]

I got another scent of this today, from a bank employee. Debts over 1 million to be handled differently.

"Sure you can't expect us to treat someone who borrowed ten million for a property that's now worth two in the same way... they could never pay it off anyway"

It's frustrating to say the least that we have paid for these banks several times over, and not only are they not under democratic control, they don't even have to account for who, and why, gets a write off of debt.

[TotalMayhem]

As I keep saying: bankers and their employees... proof is visible everywhere.

[Captain Con O'Sullivan]

I wonder will AIB employees who owe hundreds of thousands be chased in the same way that mortgagees and personal loan customers under 1million will be chased?