My reason for bankrutpcy

Feelingfoolish_3

Hi
I would appreciate any feedback on what I have written so far if that's ok. Thank you in advance.

After the break-up of my marriage in <year> I moved from <name of county to <different county> for support from my family. Not long after this I suffered with a mental health condition and became very depressed and my problems really stemmed from there. I spent money to make myself feel better. Years went by and I had overcommitted myself however I felt I was still in a position to borrow money to help myself. Therefore I took out a loan to repay my credit cards in 2006. However I continued to spend as I could still access credit and felt able afford to repay this money. I took out a further loan to repay some credit in April 2008.

At the beginning of 2009 I wanted to sort out my finances. I transferred existing credit card balances onto 0% cards. However I continued to use 2 other credit cards to support my living costs as I frequently found that I didn¿t have enough to last the month. I worked overtime to help my situation. In July I was advised that overtime had now ceased. My ex-husband has also informed me that he needs to reduce my child support due to his personal family reasons; he now has another child.

My son is almost 16, he may leave school next year (this has yet to be decided) and as such I am aware that my income will drop dramatically.
It is with regret that I now realise I can no longer pay my debts and find myself having to petition for bankruptcy.

tigerfeet2006

I'm not very good with these but Beth did an excellent 'How to' thread recently which I will go find for you and link it.
http://forums.moneysavingexpert.com/showthread.html?t=1831297&highlight=

One thing I would say is that you should put that you contacted CCCS/NDL/CAB and they advised BR.

Bethankim

Hiya feelingfoolish,

think my brain isnt working well yet this morning, i tried to tweak a little but the words arnt coming. I shall come back later once ive had coffee.

thanks tigerfeet for finding my post.

I would say it is a little difficult to read, and needs the dates, amounts and who you took credit with.
The reasons are fine, but it doesnt contain quite enough finanacial detaila dn that is what the OR will be looking for.

Beth

Feelingfoolish_3

Hi Tigerfeet and Beth

Thank you for your feedback and I have had a look at what your wrote Beth and I hope you dont mind but I nicked some of it!! Here is another version, see what you think and thank you very much again.

It is with regret I find myself in the position of petitioning for bankruptcy. I have approximately £40,000 worth of debt and I am unable to meet the contractual payments in full as overtime at work has ceased and my ex husband has had no choice but to reduce my child support due to an extended family. Up until my debts became unmanageable, I had always been able to make payments on time and had an excellent credit rating
My marriage ended in 2001 and my husband left our marital home. We lived in <county> and I had no family support to help me with my then seven year old son and felt I had no choice but to move back to <a different county> in order for me to carry on working without having the added cost of childcare. There was £13,000 equity from the sale of our property of which I used as a deposit on my home.
Not long after our move I suffered with severe depression and I obtained credit to ‘make me feel better’. This carried on with taking on additional credit for many years. I still felt able to manage these debts however in order to service these payments, I used credit to buy necessities, for example, clothes, school uniforms and the occasional holiday.
Over the last three and a half years my personal debt has become a problem. I decided to consolidate my debts with a £17,000 loan from Northern Rock in 2006 however as I had overcommitted myself I continued to use credit cards. Since then I have borrowed a further £10,000 via a loan to help repay these cards (in April 2008).
In December 2008 I began to transfer my credit card balances onto interest free cards and worked as much overtime as I could with the hope that I could start repaying these debts as soon as possible, however as I had overcommitted myself I found myself relying on two cards that I had cleared to continue to support my living costs.
I have sought advice from Payplan and was advised that a debt management plan was an option but due to my reduction in income and future income then I should consider bankruptcy as an option. My son is almost 16 and may leave school next year (this is yet to be decided) and as such I am aware of the loss of my additional income; child support, child tax credit and child benefit.
I work as a debt advisor and I am aware of the predicament I am in and the consequences of bankruptcy. This will allow me to make a fresh start, be debt free and will remove any further temptation to obtain further credit.

Bethankim

Hiya,

looks good to me and is concise, factual and explains what is needed. the only thing i might suggest is putting when you obtain credit cards and with whom and when, the OR is likely to ask other wise glad my little guide was helpful

Beth
x

rockinfreakapottamus

:beer: It is with regret that I find myself in the position of petitioning for bankruptcy; I have £40,000.00 of debt and can no longer meet my payments to my creditors. Below is how I have reached this situation.

2003-[FONT=&quot] [/FONT]Obtained a loan of £12,500 from alliance and Leicester to purchase a new car, I had no problems meeting my payments.

2004-[FONT=&quot] [/FONT]Me and my wife moved to Birmingham for her to complete her final year,
The cost of living was higher and my wages lower, my wife was not working at all.
I began to use a credit card from alliance and Leicester to help with the costs of day to day living moving balances to 0% deals with Lloyds and capital one rather than pay in full, I still met my loan payments.

2005-[FONT=&quot] [/FONT]bought a house with my wife for £145,000.00 with 100% mortgage from hsbc.
I got a Halifax one credit card to help furnish the house and pay the fees incurred buying the house, I sold my car bought a cheaper model using the excess to pay some of the remaining other credit cards, I still met all my loan payments.

2006-[FONT=&quot] [/FONT]I continued to use credit cards to supplement wages, whilst still balance transferring to cards with promotional 0% rates. I still met all my minimum and loan payments.


2007-[FONT=&quot] [/FONT]Got a joint loan with my wife from the rbs for £25,000.00 to consolidate some credit cards the loan and to purchase a second car that was now needed for my wife’s job.
Later that year we relocated which resulted in me taking a pay cut.
We rented out our house but the rent received did not cover the mortgage and service charge, we were also paying rent and still meeting all our card and loan payments, at this point we had begun to use my Halifax and our joint Lloyds accounts overdrafts to meet these payments as well as supplement my income.

2008-[FONT=&quot] [/FONT]Early this year I had got a better salary, I thought I could get on top of the debt situation and continued to meet all my payments and started to pay them off in small amounts, the interest by now was a large proportion of what was being paid off.
The older car needed expensive repairs so was traded in and I bought a new car on hp for £11,500.00.


2009-[FONT=&quot] [/FONT]After a year of trying to clear debt but not achieving anything I sought advice from pay plan and entered into dmp in January, this was the first time I had not met with the required minimum payments, not all the banks and credit cards had accepted the lower payment and continued to charge interest and other fees.
After the birth of my son we moved to be closer to family, this meant a drop in salary for me, also my wife’s drop in salary due to her maternity leave has meant the surplus income is now not enough to make the dmp payment. The tenant in the house is moving out which will leave us unable to meet the mortgage payments, the house has also fallen into negative equity so I could not afford to sell it.
I contacted the CAB and we have decided that the best option for me is bankruptcy.

I can see that the use of credit and loans early on has led me to keep borrowing to repay the original credit, and lack of planning ahead has
Put me in situations where I cannot meet my obligations.
I am aware of the consequences of bankruptcy .it will allow me a fresh start with an understanding of how I arrived here.

tigerfeet2006

Rockin' this is an old post from July.