- Sat Apr 16, 2011 12:00 pm
Natwest are not known for this - however they did seem to be going for charging orders and trying for orders for sale. This is new to us if they have started making people bankrupt and seems an odd thing for a creditor to do as they rarely make any money out of it - HMRC do it to clear their books, Amex would want to see it was worthwhile ie a property with lots of equity. Trade creditors and dissaffected former friends, family members and partners tend to be the others.
It is only worth making someone bankrupt if you are going to get your money back from it is the general rule of thumb for creditors. Insurance obligations for trade creditors and who knows for the latter group.
Think about it - the larger the debt, the less likely the creditor is to get his money back and it costs them more to make you bankrupt than it would cost you to do it - but fees are going up on 1st June.
There are some collection agencies who do threaten this and carry it through but the cases I have seen are when there is - in the jargon - "shedlloads of equity".