Reasons For Bankruptcy

hunt85

So i've got to that bit in the form, after the SOA i'm finding it the most difficult thing to complete, and its making me upset trying to analyse the reasons behind my situation.

Just wondering if you could all have a read and tell me what you think and how I could put it in an orderly way that would make sense to the OR.

"I have always been brought up to believe in credit as a way out of money problems. If I couldn't afford it then put it on a credit card and worry about it later. I was never taught to save or the value of money and when I moved out at the fairly young age of 18 I got used to calling on credit or my parents to bail me out when I got a bill I couldn't pay. I was never taught to budget or manage my money to account for unexpected bills and costs.
After working for a bank for a couple of years I felt invincible against any money problems, I kept up all my payments and had a perfect credit history and earnt good commission each month which meant I often earnt alot more than my basic wage each month. I kept being offered loans and credit cards when rates were low and my wages were high, I took the offers thinking I could use the cards for balance transfers etc to keep my interest payments low. I then had to pay to fix my car that I damaged and took the easy option of a staff loan with a very low rate of interest.
I later increased this loan to pay for a more economical car and to consolidate debt which I thought would make sense overall with my outgoings (petrol etc) to try and start budgeting. Living in an expensive city this was starting to get difficult. When I got to 2008 I was not really aware of my debt but started to realise I was depressed and unhappy in myself. I was recommended a diet from my doctor which I researched and decided to do for my self esteem unfortunately it was very expensive.
At this point I buried my head in the sand and continued to use cards I had just cleared by means of a balance transfer. I now had several cards and was living beyond my means but I did not realise it. The card companies kept increasing my credit limits making me think I was obviously credit worthy and could continue spending on an expensive diet etc. I hid any debt from my partner who thought I may have had a small amount of debt but not the amount that was now growing. Due to the side effects of the diet I was on, I started losing hair and became unable to concentrate at work. My wages began to reduce due to not earning as much commission. I then decided to eat as normal to improve my work and to feel better after a family death, which in turn meant I gained weight. By January 2009 onwards I fell into a deep depression which I started treatment for in June 2009. I lost all interest in work and became pressurised to meet targets or leave. The choices I had were clear. I began to start applying for different roles within the same bank. I was unsuccessful for various reasons with each interview I went to. I knew I could not leave the bank as I had been informed by HR that if I did my staff loan would be passed to the collections department which scared me as I'd always kept up all my payments with all my debt so far. This pushed me further into depression until I eventually decided to consolidate my other debt with a loan, hoping I could then save up to clear my staff loan.
I was then pushed further by my employer to meet targets or find another job and was completely at a dead end as I could not apply for other roles within the bank, I had exhausted all avenues and was feeling suicidal and my mental health was suffering. I then decided that due to my health I would have to leave my job no matter what and I took another loan out to pay off my staff loan. I was then unemployed for a few months until I finally got my new job in March 2010. I am over qualified for the role I now do but my mental health would not allow me to take any other role within banking as I would not be able to cope with alot of pressure.
Unfortunately being unemployed for a few months followed by reduced income and my partner now being aware of my debt since I moved in with him (although this did reduce my overall outgoings) in May 2010 meant I had to face up to it and take advice. I now knew I was seriously going to struggle to keep up all the payments I had accrued over the years. I believe my mental health and desperation to leave a job and city that had made me so unhappy clouded my judgement when making decisions about how to reduce/manage my debt. I believe from January 2009 onwards I was at the lowest point in my life mentally and emotionally and did not realise how far into debt I had become. I took advice recently from CCCS who suggested my only outcome now due to my low potential disposable income was bankruptcy."

I know its so long and maybe I shouldn't be posting something fairly personal on the internet and I know it will seem ridiculous to some people who have real problems that lead to BR, but I hope you will take the time to help me reduce and improve the reasons above! thanks!

andyf1980

Fairly new to this but I did read your text in full. There were some similarities (and differences to my case)

The summary on the form is exactly that - it should give the judge an overview of your case. They will be reviewing potentially many cases and would probably not read something this long.

When I had my interview with the OR they went into it in more detail eg. When did I get Ill, when'd did it affect my earnings etc.

Are the cccs able to give more advice?

Good luck with it anyway

Angiepange

Hi hunt85

I thought this link might prove helpful, writtten by Bethankim. Its a great guide to writing your reasons for BR.

https://forums.moneysavingexpert.com/discussion/1831297

HTH Angie x

andyf1980

That's really useful angiepange. Wish I had seen it before I filled in my forms

Ah well. Thank you anyway :T

hunt85

thanks I did read through that link before I started my reasons for bankruptcy, but i just can't seem to shorten it enough! i think i need to break it down by dates etc, overall does it seem ok/make sense?

nudenut0121

all you are being is totally truthful about your situation,i or the OR will not see anything wrong with that at all,in my case i put down dates,situations,creditors that effected the reasons for BR we are after all only human and the OR must have seen everything anyway.

Good luck.

andyf1980

I'll have a look at it and see if I can summarize.

andyf1980

How about this? Think it captures the key points. I haven't said that you resigned from your role as I don't know if you want to volunteer this. Happy for you or anyone else to rip it apart! :rotfl:


Having left home at 18 I started to accrue debt. At the time my job allowed me to service these committments and I was also able to refinance through balance transfers and a staff loan.

In 2009 I started to suffer from depression which required medical treatment and was unable to return to my existing role. Although I explored internal opportunities, I was unable to secure a suitable position.

After some months of unemployment I found a role which was suitable in view of my mental health. Unfortunately this role paid signficantly less than my previous job and this has contributed to my current financial position.

hunt85

thank you this is great!! I can't deny I will probably add a few bits back into it - but the basics of it is perfect - i just couldn't see the wood for the trees when i looked through it. I guess its harder when its your own situation etc.

Thanks alot for taking the time to do that for me