Bankruptcy...will we go to jail?

ALLMYFAULT

i need some help... basically i have got me and my husband in a terrible position. the short version is i have/had a mental health problem of obsessive compulsive spending and i ran up debts on my personal credit cards of about £15,000 and debts in my husbands name of about £32,000. they are all in credit cards (no personal loans etc).

I tried debt management for a while but left when i was struggling when the debts just kept going down by tiny amounts so i tried my own plans and contacted my creditors and arranged plans but am now unable to keep up with repayments.

we dont own a home or even a car worth over £300 so we dont have anything they could take from us. he works for himself as self employed and gets paid cash in hand which we declare to the tax man. i survive from making and selling things on ebay and also from working tax credits.

My husbands debts havent been paid we have just basically ran the cards up and not made any repayments. we are in a position because of my terrible actions that we are both going to go bankrupt. I deserve any come back from this but im worried sick about my husband, as the debts ran up i believe they can say that they were made with no intention of paying them back and i feel sick that they could put him in jail and accuse him of fraud. He knew i was spending on his cards and i just went out of control and he loves me so much he let me. can anyone offer any advice as to what could happen to my husband? Im not worried about my own bankrupsy as when i realised how crazy i had been i desperatly tried to make repayments as my debts were lower so the court will see that in my name i tried to reach a solution but like i said i worry about him. I going to tell him to tell the court it was me...would they be leniant on him? i feel sick about what i have done...my actions have ruined him and he is not far off a breakdown because of me. please help.

concerned43

Don't be daft - you can't be jailed for being in debt. Bankrupcy looks like your only option (for both of you). You do not have to justify what the money was spent on. You need to calm down, take a deep breath and file for bankruptcy.

immoral_angeluk

If the official receiver believes there is fraud then they do have the power to instigate criminal proceedings. However, what usually is the case is that you will get a Bankruptcy Restrictions Order or Undertaking, which extends the restrictions placed upon you during BR beyond your discharge date. I would advise seeking legal advice from a solicitor who deals with debt in all honesty.

vaporate

50% of the nation would be jailed, along with the directors of the too big to fail banks.

It costs 24k per annum to keep a prisoner locked up so with budget cuts you will be fine lol only joking.

Don't worry.

ALLMYFAULT

im just so scared they will see it as fraud... i mean taking on alot of debt you couldnt pay back?

what will be the implications of them placing that restriction things on him? will it mean he will be bankrupt for alot longer? has anyone else on this forum took on alot of debt, no made repayments and then gone BR? if so what happened to you? i have that sick feeling in my tum and feel like i cant breath most of the time worrying about what they will do to my hubby but then if he explains will they persue me as it was me that used the cards? we have a 2 and 4 year old so im so worried for them and the impact of this. i cant believe i was so stupid- destroying myself was one thing but i was so unafir on him.

wok_boy

Stop worrying. Your husband isn't going to be charged with fraud.

Look at the information in this thread:

https://forums.moneysavingexpert.com/discussion/1056083

Phone your local CAB or one of the debt charities listed, listen to what they have to say and they will tell you what is the best course of action in your case.

IF

Hi AMF and Welcome, No if you receive a BRO/BRU you will still be discharged after 12 months. First thing make a list of all your creditors and debts. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another.

Please don’t do anything rash take your time and weigh up your options and read everything you can x

Please click on Blue links below.

For ‘essential’ info this is Fermi’s sticky at top of the forum:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

These are the most used Debt charities:-

http://www.citizensadvice.org.uk/index/getadvice.htm

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/

More Debt charities also on Fermi’s link:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
If...x

ALLMYFAULT

thanks so much, i have been looking into this for month but am now really gonna start my research.

my other main concern is bank accounts. i currently use a halifax easy cash bank account for my tax credits and small income to be paid into but as i also owe halifax on a credit card i know they will close it. as im about to renew my tax credits i was thinking of applying for a co-op basic bank cash account and make the changed now to get my benefits paid into it. would they close this also when i go bankrupt? if so how do i get my money as we really need it to live on?
i also have another basic bank account (which i have has for over 2 years but never used? forgot i had it) with lloyds tsb (no overdraft or credit etc) and i want to start using this as i dont owe tsb any money but would this also be closed?

sorry for all the questions. hoping to sleep better tonight for a change!

UnderPressure

Hello and welcome to the forums

I cannot offer any specific advice but can see the sheer panic in your posts so just wanted to offer a few friendly words and try and put your mind a rest a little

As has already been said you do not get sent to prison for being in debt, all the debts were in his name so really there has been no fraud commited, I am sure when you applied for the various cards you had full intentions of paying them back things cahnge thats just life...........

I think it is very brave of you to admit all of this so would also like to say well done, I do hope you are getting some help now with your illness just because you may have come to your sense now doesn't mean it will stay like that forever so if you do not have a councillor of some sort please please please go and see your GP and try and get one.

Your husband on one hand sound like a great guy for sticking with you truly through the good and bad that is what couples are supposed to do not do a runner the minute things turn a bit sour so you have a good one there Wether or not he should have tried to reign your spending in a bit is a seperate matter and I suppose of no relevance now lets just hope you have BOTH learnt a lesson

I too am a father to 3 young children and know just this added responsibility when your in sucha position makes things even worst, take the advice that has been offered above ring one of the charities NOW they are generally ope till about 8pm set the whells in motion so to speak, the sooner this is all over the sooner you can all get on with your lives.

Dont even think about prison it is not going to happen, and never mention it again either you would not want people thinking that you had something to hide now would you?

All the bes to you and your family, they are a great bunch on this forum so keep posting your story will be of benefit to may many other people over the next few years

ALLMYFAULT

thank you so much for your kind words. i am just such a natural worrier. i am finally getting myself back on track and just need to get the ball rolling so i can start to sleep at night at the moment. I feel like i have just woke up that bit too late. i think the turning point for me was when i made my husband cry (and he is a big man) i just pushed him too far, he begged me to get help and i did and its made me wake up and realise.

I went to the doctor and got medication and it slowly woke me up. I was crazy...just buying buying buying...the most random of things and then selling them on not long after for sometimes about 1% what i paid for them. During my crazyness i even bought a pet skunk! Im suprised i wasnt sectioned! now life is better, i still get urges but i can now stop myself and i just need a fresh start so i can begin to make it up to my husband and start living. I have alot to make up for, and yes he is an amazing man...Im a hard person to love and live with but he has been there everystep of the way.

i have got details of all debts for both of us. i think i am gonna focus on doing his BR first as he is who i am most worried about. now i have stopped paying my debts back im gonna use the money and save for the br money we need.

I have just taken the first step and applied for the co-op cash minder account as i think my halifax account which my wages go into could get money taken from it as i owe halifax alot on a credit card so i am planning on hopefully starting to use the co-op one to safe guard the money we need to live on until i can aford to go br.
my next step will be to speak to national debtline (dont know why i chose that one but like their website) and get the forms for hubby sorted.

does anyone know if there is a link to the time line for br...i mean when you put forms in when and what amounts you have to pay etc (did a brief search but cant find owt) and how long everything takes?

also what will happen to my working tax credit payments when i myself go br?

JCS1

Definitely set up a new bank account with Co-Op or Barclays - Halifax have a strict no BR rule and will close your account.