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Post by overthehill on Dec 21, 2022 14:59:52 GMT
Somo will launch a personal and business insolvency and bankruptcy product, which will be serviced by in-house insolvency specialists.
What is this exactly and how does it work for the lender ?
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Dec 21, 2022 15:27:20 GMT
Having seen insolvency practitioners at work, the lender will be screwed. Certainly SOMO will not be able to interpret the rules to get lenders their money back as prority
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iRobot
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Post by iRobot on Dec 21, 2022 17:23:46 GMT
Having seen insolvency practitioners at work, the lender will be screwed. Certainly SOMO will not be able to interpret the rules to get lenders their money back as prority The full quote from the article is: "Alexander added that in 2023, Somo will launch a personal and business insolvency and bankruptcy product, which will be serviced by in-house insolvency specialists." Somo will launch a personal and business insolvency and bankruptcy product, which will be serviced by in-house insolvency specialists. What is this exactly and how does it work for the lender ? Probably wiser to await the product's release rather than speculate - esp as, mostly in the former guise of BridgeCrowd, SoMo don't have the greatest record of following through on new products such as those mentioned in this announcement and then this one. Not complaining, just an observation.
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Greenwood2
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Post by Greenwood2 on Dec 21, 2022 20:54:14 GMT
Having seen insolvency practitioners at work, the lender will be screwed. Certainly SOMO will not be able to interpret the rules to get lenders their money back as prority Why do you assume that?
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Dec 21, 2022 21:12:05 GMT
Having seen insolvency practitioners at work, the lender will be screwed. Certainly SOMO will not be able to interpret the rules to get lenders their money back as priority Why do you assume that? In most cases the rules for distribution mean that individual lenders are a very low priority. and Insolvency practitioners charge huge fees, £300 an hour for admin isn't uncommon, £800 or more for the insolvency practitioner, and lots of expenses. Looking at cases where a company goes bust and FC or whoever get themselves involved the outcome is no better than if they aren't
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Post by overthehill on Dec 21, 2022 23:24:10 GMT
I must say I'm none the wiser despite the undoubted wise comments from all. I can't even fathom the purpose of the lending? Aren't all assets sold and distributed to creditors in a bankruptcy !
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Post by Ace on Dec 22, 2022 8:27:02 GMT
I must say I'm none the wiser despite the undoubted wise comments from all. I can't even fathom the purpose of the lending? Aren't all assets sold and distributed to creditors in a bankruptcy ! It wasn't clear to me that they were even suggesting that it was a new lending product. I assumed that they had staff that were having to deal with bankruptcies and insolvency in their normal course of business and that they were thinking of keeping more of that work in-house. Therefore, they were going to offer their services to others to keep those staff fully employed and deepen the services that they could perform in-house. I could be very wide of the mark, since everyone else seem to interpret the info differently.
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zuluwarrior
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chap from Newcastle, dabbling here and there. Long-time lurker of the forums
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Post by zuluwarrior on Dec 22, 2022 16:38:27 GMT
There are two things this could potentially be, nowhere seems to provide much more information on it.
1. Could be insolvency funding - in the finance industry, you can get finance to fund an insolvency, through either providing capital for litigation or working capital to keep the business trading.
2. Second option is its usual finance or those who are discharged bankrupts
I don't believe its anything to do with existing SOMO borrowers.
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Greenwood2
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Post by Greenwood2 on Dec 22, 2022 21:39:07 GMT
There are two things this could potentially be, nowhere seems to provide much more information on it. 1. Could be insolvency funding - in the finance industry, you can get finance to fund an insolvency, through either providing capital for litigation or working capital to keep the business trading. 2. Second option is its usual finance or those who are discharged bankrupts I don't believe its anything to do with existing SOMO borrowers.I don't think it is anything to do with Somo lenders either, seems like an inhouse expansion of business, if it happens.
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