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  • FIRST POST
    • Dell2u
    • By Dell2u 5th Jun 17, 8:43 PM
    • 33Posts
    • 7Thanks
    Dell2u
    Planning to Go Bankrupt - logistics
    • #1
    • 5th Jun 17, 8:43 PM
    Planning to Go Bankrupt - logistics 5th Jun 17 at 8:43 PM
    Hi
    Ive got myself in a real mess with debt and need to sort out... Been researching bankruptcy but not sure if I can do it, and need to ensure I am settled in rented house before I do so.

    Currently myself and 16 yr old son staying with elderly parents (I am 51). Compulsive gambling problem for last 6 years so have now got to stage where I have maxed out ccs and have several personal loans and overdrafts totalling best part of £22K.... Income of £1550 month and now debt payments are roughly half of that to pay minimum payments on each.

    Will I be able to go bankrupt with debt caused by gambling? I am at end of road.... I was supposed to be saving up deposit etc to get rented house with son but now I've taken backward step. At moment I just pay some board to my parents and community charge (£400) so I feel if I want to go bankrupt I will need to move out into rented house, cos if I don't do it before I go bankrupt will I even be able to get a rental?

    Assuming I pay debts on time for next 3 months then apply for rented house and move in (using payments intended for unsecured debtors for deposit etc), my intention was to then apply for sequestration (bankruptcy in Scotland). I'd have about £160 left over after household bills paid.... Will I be able to go bankrupt, as debt advice website suggests Trust Deed, repayment plan or bankruptcy depending on how I enter my household arrangements? I don't want to be paying debt for next 10 years or so, I'm 51 already....

    Also my son is hoping to either go to college or return to school in August. . If he's at college and getting a small bursary, is he considered a dependent? Or if he gets student loan should he be contributing to household income? Not sure how this viewed?

    My head is scrambled trying to think of logistics and pitfalls?

    - Problems getting rental with bad credit history
    - How to class son in household if hes a college student (17 soon)
    - Can I go bankrupt with gambling debt (quite recent)?
    - Would I need to pay excess income to creditors and how long would I need to pay back as part of bankruptcy?

    So many questions ---- I'm going to use Stepchange as I like their online advice but anyone had any experience of above? Thanks.

    I should say I have no assets, car etc and no hope of buying house etc in future
    Last edited by Dell2u; 05-06-2017 at 9:41 PM. Reason: ,
Page 1
    • luvchocolate
    • By luvchocolate 6th Jun 17, 7:58 AM
    • 1,479 Posts
    • 1,331 Thanks
    luvchocolate
    • #2
    • 6th Jun 17, 7:58 AM
    • #2
    • 6th Jun 17, 7:58 AM
    I have no experience on Scotland, but there are posters on here who have, so you will get more answers.
    Give stepchange a call free good free advice, but I would say your priority would be to get a rental property sorted first, its not impossible after B.R but easier before.
    Also many threads on here on going B.R due to gambling, this should also take priority to get help for this addicition.
    Look upon this as a fresh start for you and your child.
    I wish you well
    • MEM62
    • By MEM62 6th Jun 17, 9:58 AM
    • 1,382 Posts
    • 994 Thanks
    MEM62
    • #3
    • 6th Jun 17, 9:58 AM
    • #3
    • 6th Jun 17, 9:58 AM
    Have you resolved the gambling issue?

    Little point in addressing the financial situation unless the gambling has stopped.
    • mummyofboys1985
    • By mummyofboys1985 6th Jun 17, 10:35 AM
    • 52 Posts
    • 2 Thanks
    mummyofboys1985
    • #4
    • 6th Jun 17, 10:35 AM
    • #4
    • 6th Jun 17, 10:35 AM
    Have you dealt with your gambling addiction? This is your first priority. If your approximately £22,000 in debt and can afford £160 PCM then you'd take 10-11 years in a DMP. Sequestration would be 3 years.

    I would suggest speaking with CAB or money advice and they will explain everything for you.
    • phillw
    • By phillw 6th Jun 17, 10:38 AM
    • 937 Posts
    • 555 Thanks
    phillw
    • #5
    • 6th Jun 17, 10:38 AM
    • #5
    • 6th Jun 17, 10:38 AM
    Little point in addressing the financial situation unless the gambling has stopped.
    Originally posted by MEM62
    Even if it has stopped, that could just be because of the fear caused by the current debt.

    Keeping that going with will power alone when the debt is gone will be a huge burden.

    12 step programmes can be uncomfortable to go to, but they do help.

    https://www.gamblersanonymous.org.uk/

    Dealing with addiction is hard, like smokers who turn to over-eating, if you don't properly deal with it then it's just like playing whack-a-mole.
    Last edited by phillw; 06-06-2017 at 11:07 AM.
    • HothHan
    • By HothHan 6th Jun 17, 11:19 AM
    • 18 Posts
    • 15 Thanks
    HothHan
    • #6
    • 6th Jun 17, 11:19 AM
    • #6
    • 6th Jun 17, 11:19 AM
    I recently went bankrupt with debts of around 70k a big chunk of this was due to a gambling problem.
    My Bankruptcy was accepted and the official receiver said that gambling can be seen as reckless behaviour, but the worst that MIGHT happen is that you could get a bankruptcy restriction order but will still be released from the bankruptcy after 12 months. It just means that some of the restrictions stay in place like you can't be a director of a company for a further few years etc
    Gambling is a disease and an evil illness, you haven't done anything illegal and it won't stop your application from being accepted.
    You've done the hard part by admitting you have a problem, just make sure you stop and do ASAP! get help from Gamcare, support groups or wherever you can - even speak to your GP because they can refer you to relative support groups etc
    • Dell2u
    • By Dell2u 6th Jun 17, 12:21 PM
    • 33 Posts
    • 7 Thanks
    Dell2u
    • #7
    • 6th Jun 17, 12:21 PM
    • #7
    • 6th Jun 17, 12:21 PM
    Thanks for replies. Yes, I have been to GA and GP about problem though not recently. I may well have stopped because ran out of options but am determined to not gamble for next 3 months, to prove to myself I can do it and it will look better when I apply for sequestration if I can show I am not gambling anymore. Plus with limited income and no access to credit I feel this is last chance for me to sort out my life.
    • daytona0
    • By daytona0 9th Jun 17, 10:44 PM
    • 2,237 Posts
    • 2,666 Thanks
    daytona0
    • #8
    • 9th Jun 17, 10:44 PM
    • #8
    • 9th Jun 17, 10:44 PM
    Thanks for replies. Yes, I have been to GA and GP about problem though not recently. I may well have stopped because ran out of options but am determined to not gamble for next 3 months, to prove to myself I can do it and it will look better when I apply for sequestration if I can show I am not gambling anymore. Plus with limited income and no access to credit I feel this is last chance for me to sort out my life.
    Originally posted by Dell2u
    Sadly you don't sound like you have fully accepted the illness which has gripped you.

    Recovering from gambling is about abstaining ONE DAY AT A TIME. Not about setting up an arbitrary "3 months" timeframe to abstain for (especially to 'fool' people when you apply for a sequestration! - bit of a lie to be honest!). You only run the risk of ending up in the same boat a few years down the line when, after 3 months, you think that you are in control and it gets out of hand again.


    I go to GA every week religiously because I cannot control my gambling.

    I think that your first priority should be to attend the GA meetings and grab the 12 steps book in particular.

    Then sort out your debt.

    IF you don't sort out the gambling now then it will undo all of your hard work later down the line.

    Good luck and if you want any advice on GA then PM me or go on the GA forum; I'm occasionally on the chatroom.
    • Johnsmith2016
    • By Johnsmith2016 19th Jun 17, 12:01 AM
    • 433 Posts
    • 224 Thanks
    Johnsmith2016
    • #9
    • 19th Jun 17, 12:01 AM
    • #9
    • 19th Jun 17, 12:01 AM
    First resolve the gambling problem otherwise your just now trying to sort the symptoms not the cause .

    Get some free impartial advice on your options . If your can get the debt to 20k I'd sugguest the Scottish ewuivilant of a DRO...if poss, failing that bankcrupty ... o assume your have no assets to protect so forget a IVA and forget a 11yr DMP.
    All in my opinion of course. Best of luck
    • Dell2u
    • By Dell2u 24th Jun 17, 8:29 AM
    • 33 Posts
    • 7 Thanks
    Dell2u
    Thanks. I have no assets so think bankruptcy best for me but will take advice from Stepchange. Trying to find rented house first, then missed payments kick in, deal with creditors, move house, apply for bankruptcy, sort out banking.

    Sounds simple but my head is scrambled and I know these are massive issues to deal with. Not to mention trying to pretend to family everything fine while reminder letters come through mail thick and fast. And if I have problems getting rental due to credit check that will be first stumbling block. No missed payments yet but end of this month there will be.

    And why do I feel like a criminal?
    • kelpie35
    • By kelpie35 24th Jun 17, 8:43 AM
    • 1,521 Posts
    • 4,835 Thanks
    kelpie35
    Your not a criminal as such, just a person who has severe financial problems.

    You come across as as a person who is trying to find a way out of the mess you have allowed yourself to get into.

    From reading your posts I do not think bankruptcy is the right move for you.

    You need to address this issue immediately and then work with all the people you owe money to.

    This will take time and hard work, are you prepare to put the effort in? or do you just want other people to bail you out?
    • Dell2u
    • By Dell2u 5th Jul 17, 2:30 PM
    • 33 Posts
    • 7 Thanks
    Dell2u
    Ok. So I just applied for rented house, got referenced and credit checked by Let Alliance and received email saying recommended as tenant. Such a relief, paid deposit and now waiting on estate agent to confirm. Feel this is first step towards sorting out my life and financial mess.
    Confessed to boyfriend about what I've done so that is a big weight off my shoulders.
    Been in touch with Stepchange who say to get in touch when moved house and have accurate figures to use for household expenditure. This is first month I have not paid non-priority debts so next stage to write to them.
    How long do I have before they start really hassling me? I can deal with calls (phone turned off mostly) and letters but will anyone turn up at the door - actually my parent's door but I will give new address soon.
    Feel like I'm walking a tightrope right now.
    Will I have any problems signing up to energy suppliers and broadband providers when moving into rented house 1 August having stopped paying creditors since end June?
    • peterkay369
    • By peterkay369 5th Jul 17, 2:59 PM
    • 161 Posts
    • 68 Thanks
    peterkay369
    Glad to hear things are starting to come together for you.
    Can't comment on the energy/broadband supplier question, however it was probably around 5 months or so between my last payment to creditors and finally applying for bankruptcy.
    Had no one at all to the door, but daily letters, texts, phonecalls etc.
    I would send a letter to your creditors offering a token payment of £1 temporarily whilst you seek financial advice, that will buy you a month or two.
    • Dell2u
    • By Dell2u 12th Jul 17, 8:14 AM
    • 33 Posts
    • 7 Thanks
    Dell2u
    How long after filing for bankruptcy would it be before start paying money to receiver if they decide u have excess income?
    • Dell2u
    • By Dell2u 12th Jul 17, 1:16 PM
    • 33 Posts
    • 7 Thanks
    Dell2u
    Just reran my income/expenditure on Stepchange and now it is recommending Trust Deed (Scotland)? So this lasts for 4 years, which is what BRO may last for too given level of gambling debts.

    But would creditors accept Trust Deed given the level of gambling (recent) debt? Confused now. Will I be wasting time considering Trust Deed?

    Think I will need to phone someone.... Anyone with advice thanks. Here are my figs:

    DEBTS
    Barclays £3778 (CC)
    Lending stream £425 (payday)
    Santander £8900 (loan)
    Vanquis £2364 (CC)
    Aqua £2387 (CC)
    MBNA £4818 (CC)
    Virgin £45 (CC)
    Very £310 (catalogue)
    Sainsburys £583 (loan)
    Tesco £822 (loan)
    Santander £750 (overdraft)
    RBS£200 (overdraft)

    INCOME £1630 (includes £75 board from student son)
    HOUSEHOLD EXPENDITURE £1373 (not including debts)
    Surplus income = £257
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