Answer to the Question, Cause of BANKRUPTCY

wazza24

Many Thanks to you all for the help and advise, i am going tomorrow to lodge the forms with the court, so thanks again.

Wazza :beer:

Sophrosyne

There was only room for 4000 characters on the online form so I wrote the following: The majority of my debt was incurred while I was a student (despite working to fund my studies). In October 2005 I suffered a miscarriage. I was diagnosed with stress and anxiety and was off work for a number of weeks on half pay in early 2006. Eventually I resigned from my position and was forced to live on credit in order to fund my living expenses. In 2007, I managed to make arrangements to pay my creditors but as I am currently on maternity leave and only in receipt of Maternity Allowance and Child Benefit, I have fallen behind once more. As I am on such a low income and am unlikely to be able to work full time in the forseeable future, my debts have become unmanageable and I am unlikely to ever be able to pay them off.

Of course, I could have written about the fact that my previous partner was pretty !!!!less and never paid his fair share of household expenses, ran up a £140 mobile phone bill in my name and left it unpaid after we split, etc but I think you get the gist and if the OR needs more info I am happy to go into long, very drawn out details (will probably bore them senseless!!).

Sophrosyne

That's amusing, the work 'fe*kless' which is not a swear word and describes my ex's slack attitude to work and money has been blanked out automatically... weird

wazza24

here's what i am thinking of writing, any remarks would be welcome.

Starting back in 2003 when me and my wife got married, we started borrowing on credit cards to pay for wedding expenses and buy essential furniture and kitchen items for are home together, we soon found it cheaper to consolidate these cards in to 1 personal loan, we then had credit cards left with nothing owing on them. Looking back now I can see how foolish it was to then start using those cards again, but we did. Since then we have been in an endless cycle of borrowing and consolidating credit cards to loans.

Other factors have had a hand in the increasing debt, for example me not having a permanent job throughout that time and my wife suffering a period of depression after having a still born baby, which meant she could not contribute financially. Early in 2006 was when we finally realised that we could no longer afford to make the minimum payments on all that we owed. It was then that I approached the CCCS for help, together we set up a DMP. The DMP has run since that time with very little being paid of as I have little disposable income. In 2007 I borrowed more money from my bank to buy a car for the purpose of using as a taxi, in an effort to increase my income unfortunately this did not work as planned which in turn increased my debt. I also had a credit card with this bank which I used throughout 2007/08 on necessities; we even borrowed cash from the credit card to pay the minimum payment on the card.

So to answer the question I do not earn enough money and my debts are so great that I have no hope of ever paying them off.

Sophrosyne

Starting back in 2003 when me and my wife got married, we started borrowing on credit cards to pay for wedding expenses and buy essential furniture and kitchen items for are home together, we soon found it cheaper to consolidate these cards in to 1 personal loan, we then had credit cards left with nothing owing on them. Can you join this up with the paragraph about 'other factors'? to explain why you used the cards after the consolidation loan?

Looking back now I can see how foolish it was to then start using those cards again, but we did. Since then we have been in an endless cycle of borrowing and consolidating credit cards to loans. I would lose this line, I know you are writing about an emotive subject but as this is a legal document stick to the facts rather than your feelings about them (although it would probably be OK to express regret at the end).

Other factors have had a hand in the increasing debt, for example me not having a permanent job throughout that time and my wife suffering a period of depression after having a still born baby, which meant she could not contribute financially. Early in 2006 was when we finally realised that we could no longer afford to make the minimum payments on all that we owed. It was then that I approached the CCCS for help, together we set up a DMP. The DMP has run since that time with very little being paid of as I have little disposable income. In 2007 I borrowed more money from my bank to buy a car for the purpose of using as a taxi, in an effort to increase my income unfortunately this did not work as planned which in turn increased my debt. I also had a credit card with this bank which I used throughout 2007/08 on necessities; we even borrowed cash from the credit card to pay the minimum payment on the card.

So to answer the question I do not earn enough money and my debts are so great that I have no hope of ever paying them off.

I'm not an expert but the comments I have made are what jumps out at me, hope this helps. Someone who knows what they are talking about will be along soon!

lisamummytoarchieplusbump

wazza24 i done the same thing borrowed money from the cards to pay the min payment, just so i didnt get charged late fee but then got charged interest on the cash!?!?!? seemed like a good idea at the time

wazza24

Hi lisa yeah, i new it was the worst thing i could be doing but i had no other options, anything to keep afloat.

but then there comes a time you just run out of credit and it's all over

lisamummytoarchieplusbump

yep that was my turning point when the credit ran out i was paying over £100 a mnth min payment and it was basicly taking my balance down by about £30 as the rest was interest then spending the £30 as i had no money cause i had used it for minimum payment so i was stuck in abit of a loop

dalip

Hey by the time i went bc i was paying £580 a mth off one cc alone:eek: . I am not proud of the fact,,,,,,,,,,,,,,,,,,,,,,,,,, but like you say it becomes a vicious circle,of paying,borrowing,,paying until there is nothing left and nowhere to turn.Dx