Bankruptcy in Britain is on the rise these days, far too many people see it as a quick fix to their financial woes. It would be to the benefit of everyone involved if bankruptcy was moved from one year to 3 years and here is why.
Only last week Quick Loans received numerous applications for loans of £500 (The Cost To Go Bankrupt) in order to submit a bankruptcy order. The Government are far too lenient on people wanting to wipe the slate clean which costs the lender millions. Lenders see the 1 year freeze on credit as a slap in the face, while the borrower gets off scott free.
For every person that cashes in on bankruptcy, the lender has to recuperate the loss from somewhere which results in higher interest rates for other genuine borrowers desperate for that little cash injection to oversee their short term cash flow crisis.
Raising the terms of bankruptcy from one to three years would be a far better solution for all concerned and would deter people from taking the easy way out. This is by far a much better punishment for people who can't control their finances in the correct way, who live the high life that they truly can't afford let alone pay back. They are forcing loan companies to hike the price of loans through interest rates as we are having to foot the bill of idiotic decisions and bad money management of a large percentage of the population with the attitude of "I want it now, I'll get a loan and buy it, but I wont pay back the loan".
Bankruptcy should be a punishment for the borrower and not the other way round, so let's all get on the same band wagon and have this brought in legally to, for once to protect the lender and their cash and not the borrower and their senseless purchases.