Facing bankruptcy + was a drug addict

DavidM1_2

Hello everyone,

I wonder if anyone can help me with "been there and know the story" advice.

I was a drug addict for a year or so. The pressure of personal problems, illness, and career setbacks turned me down a street I now regret I went down. I still have the occasional down moment where I resort to class A drugs, but the worst of it is behind me.

I am now faced with personal bankruptcy due to a business venture that went wrong and they will soon analyse my accounts over the last years and find out what was spent and have me justify it.

As a heads-up, the business venture went under around a year after I left the business but I got dragged into the court claims through personal liabilities. When I started taking the drugs, the venture was still going and there was no fear of bankruptcy so it was hardly a planned event of addiction.

2 questions:

1. After speaking to someone recently, I am concerned that the Official Receiver may see the cash withdrawals over the course of the last year or so as my attempt at hiding my cash from the grasp of the creditors and therefore subsequently not allow me to write the debt off, when obviously the truth was every Friday and Saturday night I took cash out to feed my habit. Will they have to find evidence of their potential assumptions or would my statement of my habit be enough to defend myself? I have been in and out of counselling and drug clinic sessions, as well as being affected with depression and my doctors have the reports of my illness over the last years so I'm not short of proof.

2. Is actually my admission to "taking drugs" enough for the OR to report me to the police to be arrested? I mean, is actually admitting you've done drugs and spent loads of money on it an actual criminal offence?

Any help given here would be appreciated.

Thank you.

tigerfeet2006

Hi and welcome.

While I am replying to your post I'm just going to link to the lovely Amiga's diary. His problem was gambling but the same sort of rules apply and it will just show you that there is life after addiction.

https://forums.moneysavingexpert.com/discussion/1802595

tigerfeet2006

DavidM1 wrote: »

Hello everyone,

I wonder if anyone can help me with "been there and know the story" advice.

I was a drug addict for a year or so. The pressure of personal problems, illness, and career setbacks turned me down a street I now regret I went down. I still have the occasional down moment where I resort to class A drugs, but the worst of it is behind me.

I am now faced with personal bankruptcy due to a business venture that went wrong and they will soon analyse my accounts over the last years and find out what was spent and have me justify it.

As a heads-up, the business venture went under around a year after I left the business but I got dragged into the court claims through personal liabilities. When I started taking the drugs, the venture was still going and there was no fear of bankruptcy so it was hardly a planned event of addiction.

2 questions:

1. After speaking to someone recently, I am concerned that the Official Receiver may see the cash withdrawals over the course of the last year or so as my attempt at hiding my cash from the grasp of the creditors and therefore subsequently not allow me to write the debt off, when obviously the truth was every Friday and Saturday night I took cash out to feed my habit. Will they have to find evidence of their potential assumptions or would my statement of my habit be enough to defend myself? I have been in and out of counselling and drug clinic sessions, as well as being affected with depression and my doctors have the reports of my illness over the last years so I'm not short of proof.

When you write your statement then you explain about your addiction and write down the steps you have taken to overcome it and say that you can provide evidence if the OR so wishes. You won't be the first addict to go BR and you won't be the last. All provable debts will fall into your BR.

2. Is actually my admission to "taking drugs" enough for the OR to report me to the police to be arrested? I mean, is actually admitting you've done drugs and spent loads of money on it an actual criminal offence?

No, that is of no interest to the OR especially as you are showing you are doing your best to overcome the addiction.

Any help given here would be appreciated.

Thank you.

You may get a BRO/U on top of your BR but it won't be anything to worry about.

Have a read of the Look Here First sticky as that will explain lots of things.

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

Have you spoken to anyone regarding BR at all?

sort_me_own_yard_out

I cant offer any advice but just wanted to wish you all the best both with beating your addiction and the Bankruptcy.