Reason for bankruptcy

scootw1 · 19 December 2006 at 12:01PM

I'm going to be filling in this section of my BR forms soon and was wondering if this sounds okay. Basically, I took out a graduate loan when I left uni and was spending on cards. over the years the debt built up and I consolidated. Unfortunately the spending continued and then I had problems in work due to bullying which led to me "comfort shopping" and some gambling to take my mind off it. The gambling has since ceased over two years ago. I took out a second consolidation loan which didn't clear all the debts and then at the end of last year realised I needed help so went for an IVA. Six months in I realised I would not be able to keep up the payments for five years (I think the payment was unrealistically high) so stopped paying the IVA and decided to file for bankruptcy.

What does everyone think?

I stopped paying the iVA last month and am going bankrupt in the New Year. Do you think it is leaving it too long if I go BR in January (or maybe even February). is the OR going to question why it took me two or three months to file? I think I have asked that before but just wanted to double check on it.

Thanks everyone

jenchin66 · 19 December 2006 at 9:20PM

Bumping for op

Addicted2Chocolate · 20 December 2006 at 12:12PM

OK if i was dealng with your case and lookign at that written in S/A i woudl want some dates numbers and amounts eg:
when did you take graduate loan? amount borrowed payments and term?
estimated amount of debt £ X when you graduated in what year?
Type of gambling estimated losses over what period?
when did you take 2nd consolidation loan? cash advance (amount borrowed?) spent on? eg £X to credit card A £X to credit card B £X to loan C £X to overdraft etc. What were monthly payments and term (duration) of the loan?
all these pieces of info help the OR work out how your debts have been built up and how much is interest and charges.
Why did you stop IVA without a change in circumstances? ie why did you cnonsent to the IVA payment in the first place? The OR is likely to think you have just realised bankrupt is going to cost you less and you dont want to pay your creditors back as much.

scootw1 · 21 December 2006 at 3:10PM

That is true about bankruptcy costing less and is a reason for ending the IVA.

I thought I could sustain the IVA when I took it out but a few months in thoguht I wouldn't be able to for the whole term. Plus, I don't have any assets to protect so I think I should have been advised better in the first place. It was the IP trying to make money out of me, for sure.

I don't know dates and so on for the loans so cannot give those. The debts have just mounted up gradually over the years.

scootw1 · 21 December 2006 at 3:11PM

jenchin66 wrote:

Bumping for op

eh? What do you mean?

CLAPTON · 21 December 2006 at 3:43PM

it means that jenchin66 kindly noted that noone had replied to your query and while not being able to help directly themselves, by replying atall meant that your query went back to the top of the board (hence bump) and OP means orginal poster i.e. you.

scootw1 · 21 December 2006 at 4:03PM

Oh right, thanks then

scootw1 · 21 December 2006 at 4:05PM

Addicted2Chocolate wrote:

OK if i was dealng with your case and lookign at that written in S/A i woudl want some dates numbers and amounts eg:
when did you take graduate loan? amount borrowed payments and term?
estimated amount of debt £ X when you graduated in what year?
Type of gambling estimated losses over what period?
when did you take 2nd consolidation loan? cash advance (amount borrowed?) spent on? eg £X to credit card A £X to credit card B £X to loan C £X to overdraft etc. What were monthly payments and term (duration) of the loan?
all these pieces of info help the OR work out how your debts have been built up and how much is interest and charges.
Why did you stop IVA without a change in circumstances? ie why did you cnonsent to the IVA payment in the first place? The OR is likely to think you have just realised bankrupt is going to cost you less and you dont want to pay your creditors back as much.

Is it going to be seen in a bad light then? Is the OR going to impose more restrictions if he thinks I'm just trying to get away with paying less back?

missimaxo · 21 December 2006 at 4:19PM

Maybe - it will depend on what you spent the money on, proof (ie. if they think you are willfully failing to account).

Gambling over 2 years ago should not be a problem. Any misconduct over 2 years ago is considered to be "stale".

The other thing to consider is that if you have stopped paying your IVA, the supervisor of the IVA will make you bankrupt anyway!

The courts may well have a waiting time to actually hear you case - one court near where I am is now making appointments for April! They are booked up until then.

You will need more dates and details about what you spent the money on. Try and find any old statements, if it has geuinely been used on consolidation, then the fact that you can't afford an IVA shouldn't matter too much, what worries me most is that you claim you don't know dates. You should at least know approximate dates.

BTW - failure to account is a prosecutable offence in bankruptcy. Not being able to remember but being able to give approximate dates should be sufficient.

scootw1 · 21 December 2006 at 4:25PM

Well, yes I have an approximate dates for the last loan I took out for consoliation. It was a couple of years ago but I couldn't say for sure if it was 2004 (I honestly can't remember). I don't know what year the first loan for consolidation was. Wouldn't the OR be able to get that information from the bank?

What I spent the loan money on was consolidation in both cases. The debts were buily up by buying stuff and some through gambling. I can't say exactly what I spent it on though. Can I be prosecuted for that/ Jail time etc? I've still got quite a few old credit card statements if that's any help but I don't know if I still have the loan agreements.

sandralovescats · 21 December 2006 at 4:38PM

scootw1 wrote:

Well, yes I have an approximate dates for the last loan I took out for consoliation. It was a couple of years ago but I couldn't say for sure if it was 2004 (I honestly can't remember). I don't know what year the first loan for consolidation was. Wouldn't the OR be able to get that information from the bank?

What I spent the loan money on was consolidation in both cases. The debts were buily up by buying stuff and some through gambling. I can't say exactly what I spent it on though. Can I be prosecuted for that/ Jail time etc? I've still got quite a few old credit card statements if that's any help but I don't know if I still have the loan agreements.

All of that information is on your CRF

Reason for bankruptcy

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