Should I risk going bankrupt?

mickd27

I'm currently in a dispute over credit card fraud with a company I used to work for. Basically there is no evidence to say I did spend £9,000 in a bar but there's no evidence to say I didnt. Its now come down to me paying it off £300 a month or risking court action which could be a bluff. If I lose the court case I will have to pay £15,000 in 28 days. I dont have that cash so I will have to go bankrupt. My solicitor says its likley I would lose the case due to neligence.

Should I take the risk and see if they will take me to court? Is bankruptcy a bad option?

Should I just pay the £300 a month until its cleared?

hanes

Cases involved with fraud cannot be processed for bankruptcy I believe.

mickd27

so if I paid had to pay 15k in 28 days how would I pay it?

Mouse1812

hanes wrote: »

Cases involved with fraud cannot be processed for bankruptcy I believe.

The OP has not said whether he did the fraud or was the victim of a fraud. Makes quite a difference.

arcon5

Reads to me as though op was a victim of fraud but the CC company are claiming the fraud was the result of op being negligent in protecting his account, thus they are not liable leaving op with the debt.

Leaving op with the choice of either:-
- paying the debt down.
or
- allowing them to go to court and have a judge decide whether op should be held liable for the fraud or not & if so op would declare BR.


Although op, if they did obtain a CCJ it doesn't mean you wouldn't have any options - they would probably still agree a repayment plan, it's just after 28 days if not satisfied it will remain on your credit report for 6 years.

mickd27

The other question is how likely is it that they will take me to court? Ive tried to offer them less but they are not having it. The next step for them if they dont get there money is presumably court action but they could always maybe offer less. Its a bit of a gamble.

meer53

Surely it's better to pay £9k at £300 per month rather than £15k if you lose the court case ?

mickd27

Yeah but they are wanting interest. Its basically 8k and interest. They were willing to take it down to 8k.

bounce08

Are you currently employed? If you go bankrupt you will have to pay an Income Payments Agreement/Order anyway for 36 months to your creditor with any surplus income once your reasonable expenses have been paid.

Without knowing the full details, I would say your best option is to agree to the £300 a month, especially if your solicitor has advised you that you are likely to lose any court hearing regarding the matter and avoid bankruptcy.

adpod

If the court decides the OP committed Fraud, surely he would be looking at a large fine/ jail time?

I'd stick with the current payment option - if you can afford it.

Also just being nosey but did you spend it? if so what did you buy in a bar to spend that much money and any chance you could tke me out sometime lol

mickd27

Ok truth was in was a gentlemans club in germany. In my head I thought I was using my own card but obviously used the company one aswell. I fell asleep in the place and I guess thats how they robbed the card. Yeah I am now employed therefore paying back 300 quid a month wont be a problem.