Bankruptcy reasons - final draft!

sonnyg_2 · 23 February 2010 at 10:57PM

Hi all Just wondering if someone could take a look at my final draft and give any advice. I think I may have waffled.

Thanks in advance

It is with regret I find myself petitioning for my bankruptcy, I have £1478 of debt, with no ability to meet my financial commitments due to my unemployment. I have used credit throughout my adult life and have always met my financial commitments on time, until 2008.

2004 – I took out a £800 HSBC flexi loan to pay for driving lessons.

2005 – Whilst training as a nurse and attending university I opened a NatWest student account which came with an overdraft of £1250 and a NatWest student credit card totalling £392 this was used for general living costs and books.

2006 – I took out a total of £4167 which consisted of a HSBC bank loan which was used to purchase a car and to consolidate some debts, a capital one credit card and an egg card these were used for general spending. In May 2006 I also brought a sofa on a buy now pay later scheme for a total of £900.

2007 - I took out a total of £6031 with Barclaycard, Skycard and a Lloyds TSB credit card to pay for my wedding and associated costs. I also took out a Littlewoods catalogue in October 2007 with a credit limit of £1000 to use to buy clothes and household items.

In March 2008 my husband and I applied for a consolidation loan as we had a large number of creditors and the repayments began to spiral out of control leaving us little to live on. The loan was turned down and I was put through to Churchwood financial who advised me the best option would be to enter into a debt management plan I met all payments on time as agreed until April 2009. At this time we were advised to shut down any existing bank accounts and open a new one to begin the DMP. Because I defaulted on my Lloyds TSB credit card it resulted in my Lloyds TSB current account becoming overdrawn as they continued to try and take the credit card repayments.

In April 2009 my husband was unable to work due to mental health problems over the last year he has been hospitalised due to his condition. The strain of the financial pressure we are under is hindering his recovery.

In September 2009 we sought help via the citizen’s advice bureau as we could no longer afford to make the monthly payments to our DMP due to us both being unemployed. We were advised to make £1 token payments, which we have been doing every month. We wrote to all our creditors, explaining our situation. However due to my continued unemployment and my husband’s deteriorating mental health, contributed by the continued pressure from our creditors, who are now seeking an increase in payments.

We have sought advice again and been advised to petition for my bankruptcy, due to circumstances beyond my control I find myself in this position. I am hopeful a fresh start will enable my husband to regain his health and give us a chance for a future.