Reason For Bankruptcy (from SOA form)

Jaks

These are the reason for our bankruptcy

Losing our home.

We lost our house that we rented for 11 years. Our Ex Landlord had to sell his rental houses due to ill health. We were given 1 months notice to quit. We tried our local council, they could no offer us an accommodation except Bed & Breakfast which wasn't ideal as we are are family of 6. We had no alternative but to take a privately rented house and had to find money to pay for the first months rent in advance and deposit. We also had a problem with one of our housing benefit payments, the cheque was sent to our old address by mistake and we had to find the money to pay the rent ourselves as it was due a week after the cheque was sent out, a new one was issued but it would have got here and cleared in our bank account in time. We have to pay our rent by monthly Standing Order. This happened March-September 2007 (Approx)


Overcommited on Credit.

We realised we were finding it hard to pay our creditors just after we moved and tried to negociate lower payments (September 2007 Approx). That went ok until our electric bills and food costs went up.This happened May-July 2008 (Approx)

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I also declared £200 gambling loses over a 2 year period (Seaside Arcade Visits on holidays and days out, lottery tickets (over estimated to be on best side)

Will that give us any problems from the OR?

Another problem I can forsee is that despite lowering payments to all my creditors We kept paying Provident & Greenwoods in full each week. We didn't do that on purpose as I thought we had no choice as they were doorstep collectors. But I doubt the OR will see it our way.

Jaks

dalip

Think you should elaborate more on reasons if not for SOA for the OR.

Yes there will be problems as you have favoured a creditor,but to be honest there is not a lot you can do about that now but just explain to the OR and hope he takes pity on you.D

Jaks

This informatation was for the SOA that we have to take to court, we could only use 400 characters on the online form. I have written and printed out a more detail reason for the OR. I have a more details in my road to bankruptcy thread.

I am expecting a BRO so if that happens I won't be shocked. I doesn't seem to be that much of a bad deal that the bankruptcy restrictions could last longer as not that much applys to me except the not getting over £500 worth of credit without informing them (I have no intention of getting credit for a long time if ever again). You do still get discharged after 1 year if you get a BRO don't you?

A BRO is a small price to pay compared to being in debt, dealing with loads of creditors phone calls and letters that you can no longer afford to pay . It will be nice to start all over again learning from past mistakes and being less stressed and being able to relax at home without worrying every time the phone rings or the door goes.

Jaks

ClaireLR

Jaks why are you expecting a BRO?? I don't think you'll get one judging from what you've said (I might be wrong about this????)

dalip

Jaks i did that. Gave a brief explanation on my SOA then gave a detailed report of what led to bc in my paperwork to the OR.

Just because you have favoured a creditor does not nessesarily mean you will get a bro.
DX

Jaks

Thanks for the replies. I have read that one of the reason of getting a BRO was favouring a creditor.

Jaks

fudge59

I hope things go ok for you, but after looking at my bankruptcy form (the bit where is asks for why you dont have enough money to pay your debts, my statements were relatively short, and were just explained more over the phone when I had my OR interview (though I basically said the same things!)

... that I overcommitted myself on credit. Tried consolidation loans but didnt close accounts, which led to the debt doubling. Had started to use the credit cards to buy day to day expenses including food.

... could only ever pay the minimum payments, so the interest rose, which ultimately led to not having enough money for minimum payments and to live.

... tried to negotiate with creditors, who were not very receptive and refused to freeze interest, which led to me taking advice from the CAB and going BK from their advice.

I can recall that the judge actually said that they were basically the reasons he was reading day in day out as to why debts were being incurred.

It's quite worrying when I went BR in May this year, and since then around 400 more people have also too in just over 3 months!

JCS1

Jaks wrote: »

Thanks for the replies. I have read that one of the reason of getting a BRO was favouring a creditor.

Jaks

It can be, but am guessing that Provident will one of the smaller amounts of credit so may not be classed as a a preferential payment as such

Hepzibah

I was sent an offer of credit from Provident the other day. Was :eek: at the APR of something like 189%! Isn't the advice on sites such as this to pay off the higher interest debts first? Sorry I don't know if this was the case with you, but could be another argument for why you paid them first?

LilyBart

Jaks,
It never occurred to me to estimate how much I'd spent on lottery tickets! I know it's gambling, but don't you think they mean rather heavier, higher-stakes stuff than lottery tickets in that bit of the form? ie horses, poker etc? I doubt anyone would stick a BRO on you for a weekly lottery ticket and surely the intimidation of having a doorstep collector will mitigate against favouring a creditor.
Lily