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I think its irresponsible to write an article like this basically telling people how to get out from under their debts. For people who wish to continue paying they will be forced to pick up the shortfall of others who do this kind of thing.
JG
I believe that the state should write off, even a portion of some peoples debts who are in negative equity and feel trepped. If you did that, these people could re-invest again, and the state in effect would be repaid.
People will say “Well who will pay for it?” My answer to that is, it costs around 200,000 Euro per annum to house one inmate in mountjoy prison for a year, will that person who has been in prison ever repay the state, no, they will just be a drain on the taxpayer for ever. Writing off debts will help society aswell.
@John Galt: I am not endorsing this, I am merely pointing out that a lack of solution may start to direct people toward this type of answer. Bank fees/prices are already going up and nobody is doing this now, so I don’t think it automatically follows, correlation and causation can be two different things.
This is a very informative article and it is anything but irresponsible of you to write it. All of this is the governments fault. People bought properties because that’s what people do when they want to settle down and start a family, they did not do it out of greed as is sometimes suggested by those not in debt. People who are in negative equity on their family home should be given some kind of a break by the government. They should write off the negative equity. One question?? Would there be legal implications for Tommy Topper (Joe Bloggs) if he was ever found out??
Very good informative article.
“I think its irresponsible to write an article like this…..” John you must be a shareholder.
Ok, i see a few flaws, but it could work. i have personal experience regarding handing back the keys, but i went about it slightly different.
1. meet the bank and explain in no uncertain terms that you can not see any point in furnishing a loan, where the negative equity is now in the region of €150,000.00, and that this is the fault of a banking system which originally lent you the money. this is negligence on their behalf.
2. Move all your stuff out, or in to storage, U Store do very good deals at the moment.
3. rent a new place to live. when you have a new rented home, then its time to send back the keys via registered post to the bank manager. its easy to get the managers name, by calling the local branch and asking them for the manager on duty.
4. Now its a matter of waiting. they might try to track you down, but if you have masked your tracks like i did, they wont know where to start. it does mean you are black listed, but you are free from that debt, and after 12 years, you can get another loan, by that time the markets will be well back on track….
well i see no problem with people handing the keys back… this is business, the house is the collateral, especially with 100% mortgages…. The world does not rotate around CREDIT/LOANS…
Since this article was written, the new bankruptcy period is 3 years and the new personal insolvency laws have been passed, but I’d just thought I’d forewarn anybody he tries the deed poll route that this is doomed to fail from the outset. Why??
Paragraph 3 in the article states “…they are also hit with a judgement for the shortfall….”. And most likely would be.
To change your name by deed poll you must apply to the Judgments Section of the courts where they keep a record of your old and new names. Game Over!!
http://www.courts.ie/offices.nsf/0/B43B2E45023B633B802573D10045B030?OpenDocument
The legal version of this will be to follow the UK bankruptcy route for those who can.
Hand back the keys.
6 months in the UK to establish COMI (Center Of Main Interest).
Make sure you have no income above the allowable expenses so no ongoing order for payment.
Return to Ireland after meeting with official receiver, say 7 months.
If the bankruptcy is simple, ask the Official Receiver for Discharge After 6 months
Clean legal and without debt in 13 months. A chance to get back into society and be productive, pay taxes and raise kids.
No BS from the banks, accountants, PIPs and all the other trough feeders who live off the house buying ponzi scheme.
Tell me why anybody should get into the Irish Serfdom Insolvency system if they can avail of this option. The only reason I’ve heard is the begruders line that I’ll have to pay for it. They pay for revenue write-offs (PAYE and VAT) in company liquidations every month and there’s not a beep about it.
We need to stop making people into serfs and get them back into society.
Alas as usual it will be another ISIP ( Irish Solution to any Irish Problem). Were great at letting the Brits clean up our messes.
The sad part will be people who cannot move to the UK and will be at the mercy of the new insolvency serfdom.