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Niall

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    Niall

    Niall is 31 and manager of a successful fruit farm just outside Dublin. He is thinking of emigrating to England – not because he is out of work but because he is so heavily in debt that he wants to declare himself bankrupt.

    He bought three houses as a buy-to-let sideline between 2004 and 2006. Although he earned a modest salary of €25,000 a year (less than £17,000 then), the banks gave him two mortgages of more than €300,000 and another one for more than €200,000 – a loan-book worth 32 times his salary.


    The fantasy of becoming a property millionaire did not last long and now the farm manager is in negative equity to the tune of €250,000 and with a glut of empty properties on the market, he has no hope of meeting monthly repayments from rent.

    The first house cost €215,000 and his mortgage is €1,284 a month. He rents it out at €800 a month – a loss of close to €500 a month. "If I sold it today, I'd get between €160,000 and €170,000. I'm down €100,000 apiece on the other houses. If I look forward 10 years I don't think I'll ever make my money back, so I want to get rid of it completely. It's a noose around my neck," says Niall, who asked that his name be changed to protect his identity. (AtW's comment: ffs, why not use some ordinary name like John or Smith? Niall is probably his initials and 24 bit checksum of his postcode)

    Declaring himself bankrupt in Ireland is not a realistic option: bankrupts must wait 12 years before they are discharged from their debts. But under European Union law he can file for bankruptcy anywhere in Europe. If he relocates to London or Manchester he can be free of his debts within 12 months, courtesy of the "progressive" UK law.

    Niall's case is far from unique. "Bankruptcy tourism" is the talk of Dublin and the conversation is being held across all strata of society.

    Jim Stafford, at the corporate recovery practice Friel Stafford, said: "Personal bankruptcy was virtually unheard of 10 years ago, now it's everywhere: politicians, high-level civil servants, buy-to-let investors, doctors and lawyers."

    More of this madness from the source: Bankruptcy tourism draws debt-stricken Irish | Business | The Guardian

    #2
    says Niall, who asked that his name be changed to protect his identity. (AtW's comment: ffs, why not use some ordinary name like John or Smith?)
    Possibly because his real name is John Smith? Anyway, Niall's pretty normal in Dublin.

    Comment


      #3
      Originally posted by thunderlizard View Post
      Possibly because his real name is John Smith? Anyway, Niall's pretty normal in Dublin.
      That explains, thank you.

      One more question - just how the f**k banks would lend 500k euros to someone on 25k salary to get into BTL?!?!

      Comment


        #4
        So he hands the keys back, never pays the debt, where does the money go?

        Is this deflationary? (i.e. destruction of money)


        Comment


          #5
          I've been on numerous conf call with a PM called 'Niall' and at least 65 Bangalorian Bobs at the same time all calling him 'Nail' as in the thing you hammer onto..

          It's got so bad I call him him 'Nail' now due to Pavlovian dog influence..

          Comment


            #6
            Originally posted by AtW View Post
            That explains, thank you.

            One more question - just how the f**k banks would lend 500k euros to someone on 25k salary to get into BTL?!?!
            Because the banks thought that the rent could service the debt. It happened a lot before theshit: hit the fan.
            +50 Xeno Geek Points
            Come back Toolpusher, scotspine, Voodooflux. Pogle
            As for the rest of you - DILLIGAF

            Purveyor of fine quality smut since 2005

            CUK Olympic University Challenge Champions 2010/2012

            Comment


              #7
              Originally posted by AtW View Post

              One more question - just how the f**k banks would lend 500k euros to someone on 25k salary to get into BTL?!?!
              Must be using the same business plan as Rene van Mullem investing in vapourware

              HTH
              How fortunate for governments that the people they administer don't think

              Comment


                #8
                And partly because the person who lent him the money would have been trying to his his money-lending target for the month.

                Comment


                  #9
                  Originally posted by thunderlizard View Post
                  And partly because the person who lent him the money would have been trying to his his money-lending target for the month.
                  In such a case surely the moneylender is at fault for this, much like the pub landlord can be prosecuted for continuing to serve you when you're drunk and then drive...
                  Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

                  Comment


                    #10
                    Originally posted by AtW View Post
                    Niall ...
                    (AtW's comment: ffs, why not use some ordinary name like John or Smith? Niall is probably his initials and 24 bit checksum of his postcode)
                    ...
                    More of this madness from the source: Bankruptcy tourism draws debt-stricken Irish | Business | The Guardian
                    AtW, thank you for the story.

                    But honestly, if you think that many journalists would routinely use a 24 bit checksum, or even know what it is, then you probably should get out more.
                    Job motivation: how the powerful steal from the stupid.

                    Comment

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