I think I've been reckless but I'm not sure

Tryingsohardtofloat

Morning,

This is my first post on here so please be kind as I think I may have been reckless but I'm not sure.

I'm declaring bankruptcy in a couple of weeks due to a massive debt left by an unsuccessful marriage. So there is a big debt, a mortgage shortfall after the house was repossessed but other than that only a credit card debt of £1k & an account online with a catalogue company that I owed £50 with. I'm Ok with all my day to day bills & am not in arrears apart from the CC & catalogue.

Its the catalogue that's causing the problem as on 13 December I spent £200.00 on clothes & 2 Christmas presents for my children. TBH the reason was, I wasn't thinking. At all. I always get my clothes on credit then pay the amount off the following month & I didn't engage my brain at all. I've been stressed recently & gone up a clothes size & none of my current clothes fitted me & I needed new ones. So I went to see the CAB on 10 December, came home with the bankruptcy forms then spent the £200. on 13th. Its too late now to return the items & I can't pay them off as I would be showing a preference.

I'm worried sick about whether I have been reckless, I can't eat, I can't sleep & when I do sleep I have dreams about the bankruptcy. It was pure stupidity on my part. What will happen if the OR decides I've been reckless? How do I explain such idiocy to them?

Please help me.

TinyToes

this is just my opinion, but someone may offer better hard advice.

I dont think the sum of £200 will cause you much bother. It was for clothes that you needed. I wouldnt worry about it too much. Not as if you have went and ordered a new t.v. or gadget etc.

tiggerbodhi

IMHO it technically is reckless but in the grand scheme of things it sounds like bows and arrows against the lightning, you spent £200 on clothes that will last you a year or two, on your SOA you are allowed £20 a month for clothes etc, although some would like to see it you do not have to wear sackcloth and ashes just because you are BR.

Have you declared BR yet? only really would be a problem if you used the catalogue after BR, but even then if the account was not closed by the OR you are allowed credit up to £500 without informing the supplier or the OR.

as for explaining idiocy (which it isnt BTW) all the OR wants is openess and honesty, they are not there to tell you off, just deal with the process.

Tryingsohardtofloat

Thank you for your replies & your time, I have a court date in a couple of weeks time as I need to get some pension figures together, so no I haven't declared yet.

jodies_mum

the OR does not do a credit check so if you did pay off this small catalogue i dont think it would be a problem.
Even as bankrupt you can have credit you just have to delcare it if its over 500 pound to the creditor.

By declaring it , and putting it in your petiton for BR , all it says is knowing you were insolvent you continued to use credit and that is the culpable part.
Worst case scenario would be a BRO but prob over the shortest time which i think is 2 or 4 years, all that does is keep the restrictions for the time remaining after discharge.

I certainely wouldnt lose any sleep, the OR will deal with the act as they feel fit.

tiggerbodhi

jodies_mum wrote: »

By declaring it , and putting it in your petiton for BR , all it says is knowing you were insolvent you continued to use credit and that is the culpable part.

But as the OP has not declared BR yet, technically they may not have known fully at that point the light bulb moment of being insolvent and declaring BR, so a BRU/BRO IMHO would be unlikely.

Agree with JM though, wouldn't lose any sleep over it...

Tryingsohardtofloat

Thanks, I can breathe again.

I'm so glad I found you all, I've made an appt to open a Co Op Cashminder tomorrow as well

jodies_mum

tiggerbodhi wrote: »

But as the OP has not declared BR yet, technically they may not have known fully at that point the light bulb moment of being insolvent and declaring BR, so a BRU/BRO IMHO would be unlikely.

Agree with JM though, wouldn't lose any sleep over it...

She said she went to CAB on the 10 Dec and took advice and spent on the catalogue on the 13 Dec . She then stated if she paid them it would give them preference. Indicating aware of her actions . Between the 13th Dec and today a catalogue would have accepted prob a return if not worn.

However i m not here to give a kicking, just advise that you need to b e dead sure what you are saying, so when i advised by paying off the debt , you could a) prob keep the catalogue, i have one, and it has proved a god send in my BR, for the odd small item, and b ) it is not questioned and wont come back to bite you. obviously if that not possible then play a bit dim with the OR.
Most BRO are for daft things like a new sofa etc out of the catalogue and often not of a lot of money but it the culpability act they determine on.

fermi

Can't imagine a BRO/U for that.

Even if there was, it would be a short one, and not anything to be concerned about.

As said, just be honest and it will be fine.

mattannar

jodies_mum wrote: »

She said she went to CAB on the 10 Dec and took advice and spent on the catalogue on the 13 Dec . She then stated if she paid them it would give them preference. Indicating aware of her actions . Between the 13th Dec and today a catalogue would have accepted prob a return if not worn.

However i m not here to give a kicking, just advise that you need to b e dead sure what you are saying, so when i advised by paying off the debt , you could a) prob keep the catalogue, i have one, and it has proved a god send in my BR, for the odd small item, and b ) it is not questioned and wont come back to bite you. obviously if that not possible then play a bit dim with the OR.
Most BRO are for daft things like a new sofa etc out of the catalogue and often not of a lot of money but it the culpability act they determine on.

Where did you find that info from. Whenever I look at the site most of it is for fraud or gambling.

debt_doctor

Hi,

I wouldn't even give it a second thought. So you went out and obtained £200 worth of mainly essential goods - ie clothing. Its like saying, I continued to use the gas and electricity even though I knew I was going to go BR - of course you would!
Just not material in the big scheme of things.

DD