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Oz Teens Going Bankrupt

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Aussiejeff

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http://www.theage.com.au/news/national/bankruptcy-the-only-option/2007/12/08/1196813083832.html

Apart from the serious side of this report - you have to wonder (in our *spend like there's no tomorrow* society) how many actually ARE filing for bankruptcy before they have hit 20. Can anyone in the know tell me how much SERIOUS education do kids get in school these days on how to manage money/finances?

Also, I found it ironic that the report appears on a web page littered with links by financiers offering cheap rates and other *lucrative* financial advice/offers...

Not so much Xmas Cheer,

AJ
 

Well, a good few years ago I received 0 schooling in any form of finance in high school, but fortunately I was already well discplined in both saving money, & making it, as I had been importing American/European DVDs & reselling them in Australia since the age of 14.

It is indeed quite scary that a good bulk of my generation have no sense of responsibility in that regard; my brother is 26 & hardly has a cent to his name (which would be understandable if he was a hard working student...but, he left school at 10th grade). I know plenty of other young people who spend their weekly earnings on alcohol, & partying over the weekend Not to mention drugs, & outfits that rival the cost of food for 2 months.

It really is a sad state of affairs, but - being bankrupt will at least teach them! Hopefully.
 
Good on your father and good on your Prawn for listening to him and persevering on your financial education and application. Not everyone is lucky to have a good mentor. And, not everyone will want or listen to a mentor even if they were presented with one.

 
Those teens learnt from there selfish parents. Too bad.
Click to expand...

In my humble opinion, I think that statement is a bit too harsh. There could be a whole lot of different factors that push teenagers to bankrupcy, a big factor is the environment and how easily banks give credit to teenagers. Hopefully, this will be a wakeup call for the teenager in the article, as well as others out there.

 
Filing for bankruptcy seems to be so normal, that probably laws will have to be changed a bit, as at the moment bankrupts can get clean slate after several years and they can do the same many times in a lifetime.
 
In all the cases I've seen of people almost happily accepting bankruptcy to get out of their self inflicted misery, I've yet to find even one who gave a millisecond's thought to their creditors. It's just too easy a way to cop out.
 
Went technically (didn't do the legal stuff) bankrupt at the age of 23.

Let's just say excessive leverage and speculative stocks aren't a good combination...

Paid every cent back the hard way - through actual work. Amazing the jobs which suddenly become "attractive" when you really need every cent. Amazing just how low you can cut everyday living expenses too.
 
someone near & dear to me may be facing this issue, and I am doing some research on the options.

The situation is they crashed an uninsured car into a parked vehicle.

damage to the other vehicle, (which was insured) is the issue, with my estimate $10k min, but maybe write-off ~40K (still awaiting bill from Insurance co)

said young person was not badly hurt, but is experiencing mental turmoil before and after, to the extent medical treatment is required.

I have offered to negotiate with the Insurance Company, as I have done this successfully several times before.

My hope is to be able to agree settlement, however, ultimately it is not my decision to make, as the person is an adult, but reliant upon Youth Allowance, with no assets.

A definite option is declaration of bankruptcy.

I seek opinions and experience on all options available, especially anyone been down this route.

all comments welcome, even unfavorable ones.

will seek legal and/or accounting advice on their behalf.
 


I guess an option could be that the family pay off the debt if possible and make some arrangement to take it out of the youngsters future earnings.
 

While I sympathise with this person and their family/friends etc as accidents do happen it does beg the question of whether these people should be on the road at all.

In this case fortunately nobody was injured but imagine if an innocent person was injured to the extent that they require $1000's of care monthly for the rest of their lives who is going to fund that ?

Not this driver obviously.

(actually accidents don't happen - they are caused)
 
an update

this matter has now been settled for ~20c in the dollar.

I would advise others in a similar situation to negotiate with the Insurance Co, I found them surprisingly easy and pleasant to deal with.

after seeking advices, played my hand well with the cards got dealt, went against the wind a bit, turned out to be one of my best efforts
 
Reactions: PZ.
Sounds like a good negotiation.
Congratulations.
There are always alternatives.
 
Reactions: awg

Are you a lawyer awg ? If not, was a lawyer hired ?

Back to The Age report, there seems to be a lack of due diligence by financial services companies, the same sort of negligence that spawned the GFC. And yet everyone is saying that we have a well regulated financial system.

Bollocks.
 

Sounds a bit unfair to me.

The government will push up my rego again next year....
and the insurance as well.

Even though i never claim or crash into other people recklessly.



We have to take responsibility for our own actions.

1) on Youth allowance, the gov taking financial responsibility
2) Not insured no responsibility
3) Parents not taking responsibility for paying or not being insured
4) Not paying back all of the debt 20%

Who is taking the losss???

I will be when i get hit because I do the right thing.

I hope this is a lesson for others.

The authorities are too weak on people.

Don't give suspended sentences fine them.

If they can't pay the full amount should be put on like HEX debt and taken off any government allowances and added to taxation. Then people might learnt learn to buy insurance and be more careful.

Part of the reason why compulsory third party was introduced, people couldn't be responsible for their own actions they played the blame game and sympathy card all the time and used loopholes like bankruptcy.

Look at a famous case, no responsibility at all

http://www.watoday.com.au/wa-news/mps-son-ordered-to-pay-boat-crash-victim-20120330-1w3e7.html

Eventually the parents took responsibility and paid something.

my twocents
 
OmegaTrader said:
Sounds a bit unfair to me.

The government will push up my rego again next year....
and the insurance as well.

Even though i never claim or crash into other people recklessly.
my twocents
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please share the joy..after all, as you correctly stated you could be paying,
so you may as well lighten up bro.

Ive seen much worse though professionally, the wastage in the system is horrendous

We reached a commercial settlement, couldnt believe how cheerful the dude that signed off on the deal was...so probably actually SAVING YOU money, now you can be glad twice

even though I am not a lawyer, should you ever make a mistake and find yourself in a bind, surely you would be hoping for a strong advocate your side, whatever your level of culpibility...its a dog-eat-dog world in this capitalist system mate
 
I "get" both sides of the argument.

Agreed, awg: Once the horse has bolted, once the accident has happened, it may be best for all concerned to arrive at a 20% settlement. The Insurance company (i.e. everyone's premiums) receives at least something rather than nothing, and the culprit will (should!) have a lasting reminder of what went wrong, at least as long as he makes restitution for the smaller amount.

But from a point of common decency and natural justice, it still stinks. The spoiled brat of rich parents takes Dad's luxury car/ boat/ bike and goes on a drunken rampage, leaving a trail of property damage and/ or grievous bodily harm - and then gets away with a slap on the wrist by declaring himself bankrupt or paying only a small fraction of the damage caused. What is fair about that? His mum and dad rather paid a team of Lawyers than compensate the victims. They can afford to support their Sunshine for the duration, and when the bankruptcy is extinguished in a few years, he'll still be able to land a cushy job in Big Business where nobody gives a damn for ethics. Just like Trump, he could even be praised for being smart and using "the system" to his advantage.
 

Awg's case is a pretty simple one because no one was injured apart from the person at fault. If others were injured then there would be a charge of grievous bodily harm up to manslaughter whatever is appropriate. Then the issue is sentencing , and the sentences for drunk/irresponsible driving causing disability/death seem incredibly light to me, 2 years or so for negligent driving causing death.

eg this

A Tasmanian woman who caused the death of her four-year-old daughter through negligent driving will serve one month in prison.

http://www.abc.net.au/news/2016-01-...entenced-over-death-of-young-daughter/7081094
Click to expand...

or this

A Tasmanian man who crashed his speeding car and killed a passenger has received a six-month suspended sentence.

http://www.abc.net.au/news/2013-09-13/death-driver-avoids-jail/4957350
Click to expand...

WTF ?

Sentences need to be beefed up, but whether this would actually prevent deaths or injuries caused by negligent is debatable. These things happen because people are careless and don't consider the possible consequences of their actions, like texting/talking on mobiles while driving. You can easily get knocked over on the footpath by people walking with heads down looking at their mobiles.

Social change is needed. In Japan I believe people get annoyed if others talk on mobiles on public transport. Some shops I've been in refuse to serve people talking on mobiles. There should be more of that.

Slightly off the topic of teenagers going bankrupt, but it's all to do with a "don't care" attitude to many things including driving, paying back debts and for other people in general.
 


I don't agree with jail for all offences.

Especially in AWG case.

But I disagree with 20% payment. Responsibility is 100% not 20%

I always pay 100% of my bills. Not 20%

1) People can get worse after jail
2) we have to pay 100,000+ a year to keep them there

Fine and make them pay over their lifetime like Hex
or

if they can't pay it off slowly make people work it off eg in the bush or the army so it is more economical

my two cents
 
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