BR soon and gambling issues

bokeh

Long time lurker, and inspired by the BR diary that a user on here called 'Amiga' wrote about going bankrupt whilst having problems with gambling, I am finally taking the plunge.

I'm 31, currently have around £32,000 worth of unsecured debt and I am unemployed due to being made redundant. My story goes like this..

I originally took a loan out for a car aged 18, but went on a spiral of selling and buying at a loss for some reason. Since then, I basically began living beyond my means. I had a low-ish paid job and kept taking out credit cards/loans just to pay for luxuries. I ended up getting payday loans which spiralled out of control. Before I knew it, I had around £37,000 worth of debt.

This has remained this way for the past 6 years. I tried going onto a DMP but didn't have the discipline to stick to the monthly payments. I realised the mess I was in and sold everything I owned, my car, tv, a few clothes etc until I was left with nothing. I only made back about £5k and used that to pay off my two credit cards.

I still had around £32k debt life. I worked out that with my job/salary at the time it would take me something like 6 or 7 years to pay back after paying for my monthly essentials.

This issue, combined with various other things (problems with work, family issues etc) led to stress, anxiety and ultimately depression and drinking. I spend lots of time off work, and was referred by my GP to various local health services which generally weren't very helpful.

During this period, I began gambling. I thought (wrongly), "maybe I could use my wages to gamble my way out of trouble?". Instead of paying my creditors through a DMP, all of my spare wages went on gambling and alcohol. I lived alone and had no friends or family close as I had recently moved and had no support.

I literally spent the next three years gambling and drinking. In total, I probably gambled something like £20,000 worth of wages - money, in hindsight I realised I could have used to pay my debts. My health took a downturn, my blood pressure/cholesterol was off the scale and I had turned into an alcoholic.

I (somehow, god knows how) met a girl who brought me back down to earth. She was supportive, and realised my problem. She has helped me with drink and gambling. I have cut my alcoholic intake right down, and my gambling has reduced dramatically. It is an addiction and it is not something you can just go cold turkey over. It went from being an idea to try and win my way out of debt, to becoming a pure addiction.

In summary, for the past 3 years, I have gambled most of my wages. I have not used a penny of my wages to pay any of my debt - I managed to avoid creditors through not updating address and changing phone numbers and have somehow avoided CCJs.

I know that on the bankruptcy forms it asks you how you came into debt. Will the court/OR see it as my bankruptcy was not caused by gambling, as none of the debts were caused by gambling (i.e. I never used credit cards/loans/took out money to gamble) I was using my wages to gamble instead of paying them?

I am so worried about going to court/the OR and them looking at me like scum and giving me long term BR restrictions.

I am now unemployed and cannot afford to pay my debts even if I didn't have a problem. I have been advised by StepChange that bankruptcy is a good option for me.

I just want a fresh start. I know I'm a fool and an idiot. I know I should have acted differently, but life happenned and I didn't know how to deal with it. I just wish I could reset my life but know I can't.

What are the likely repercussions I can expect? Will the court/OR take a different view because my debt was accrued throw overspending/paying for a lifestyle rather than the debts accrued due to gambling or will I be treated as if gambling is the sole cause?

Very worried, I know it needs to be done, but I am worried.

dj2015

Hey bokeh, firstly congrats on taking the first steps and admitting you have had problems.

Reading your reasons for thinking about bankruptcy I'm sure your not the first and won't be the last who has dug their head in the sand. We've all done this for different reasons and in different ways (which is how we end up where we are)

Next steps should be to speak to stepchange or CA and get some professional advice. Their job won't be to judge but to give you the best advice on how you can get your life back on track.

Its possible you may well get some BR restrictions and they may possibly view your gambling as a cause of your financial situation. Although you didn't use credit cards/loans to gamble, you choose to gamble rather than pay these bills.

BUT... The debts won't disappear on their own. Both the OR and the court will have seen these reasons before so it wont be a surprise. The OR would probably call you in for a face to face interview but you shouldn't feel ashamed. It wont be to judge you but more will be to get a full picture of your situation, what led you to this stage and how gambling has hindered your ability to pay these debts and dmp.

I would certainly go and get advice and go ahead with it. Even if you do happen to get some restrictions (although you may not) at least you'll have less stress not having to worry about all the letters and phone calls.

Good luck with this!

Amiga

Hey Bokeh,

You mentioned my diary so you know I have been in the same exact situation mate. Now it looks like you will never get out of it, but you will. I did get a BRU myself but it doesn't have the huge life changing experience you are thinking it will. The Court won't really mention it to much, the hearing is pretty short and to the point. The OR will mention it and you will be called to a meeting to have a chat about it. The one thing I will say is that no one will look down at you. The OR has a job to do and will ask some questions. Just be 100% honest and you have nowt to fear. You are currently at the worst part. Believe me it will soon fly by. The key is too stop the gambling. If you can do that then the OR will be happy that you really are changing. Best of luck mate, you will be fine.

bokeh

Amiga wrote: »

Hey Bokeh,

You mentioned my diary so you know I have been in the same exact situation mate. Now it looks like you will never get out of it, but you will. I did get a BRU myself but it doesn't have the huge life changing experience you are thinking it will. The Court won't really mention it to much, the hearing is pretty short and to the point. The OR will mention it and you will be called to a meeting to have a chat about it. The one thing I will say is that no one will look down at you. The OR has a job to do and will ask some questions. Just be 100% honest and you have nowt to fear. You are currently at the worst part. Believe me it will soon fly by. The key is too stop the gambling. If you can do that then the OR will be happy that you really are changing. Best of luck mate, you will be fine.

:beer:

I haven't gambled since the end of January. It's been tough but I've been free from gambling since then and determined to get things sorted out.

I have started out filling out the BR forms from the court's website in advance. One of the questions asked "Have you gambled any money in the past few years?" or something similar to that.

I started going through my bank statements just for the last year back to February 2014. JUST for the last year I worked out I had gambled over £26,000. I'm worried to look back even further (my statements only go back a year) but I am realising it could well be over £40-50k. My gambling was particularly bad last year compared to others though as I had been having issues with stress, depression, work and legal problems etc.

It's pretty clear I will also be getting a BRO/BRU too, and I will accept that as it is all my fault and I deserve some sort of repercussion. Just waiting to hear back from one of my creditors and then will be going BR next week hopefully. I've emailed my local county court to ask about whether I need an appointment or just to walk in.

Thanks for the replies.

owlet

Well done for facing up to your problem and moving forward, that's a huge step.

Before you go BR have you set up your basic bank account(s). It's best to do this before BR. You can go to the co-op (cash minder acct) but don't say you are going BR! The Co-op will let you have internet access. The other option is Barclays basic account but no internet banking.

Co-op won't open an account while you are BR but Barclays will.

Good luck :-)

bokeh

owlet wrote: »

Well done for facing up to your problem and moving forward, that's a huge step.

Before you go BR have you set up your basic bank account(s). It's best to do this before BR. You can go to the co-op (cash minder acct) but don't say you are going BR! The Co-op will let you have internet access. The other option is Barclays basic account but no internet banking.

Co-op won't open an account while you are BR but Barclays will.

Good luck :-)

Thanks - I already have a co-op cashminder account however it is overdrawn (I have no idea how that happenned, something to do with a company not claiming payment immediately which they claimed at a later date) so I don't thin Co-Op will let me open another cashminder account post-BR if they are one of my creditors.

I also have sevearl loans and an overdraft with Barclays which will be included in the BR. I have heard that Barclays will still let me open a basic account post-BR even if I have debts with them included.

alastairq

I have heard that Barclays will still let me open a basic account post-BR even if I have debts with them included.

Correct...best to go round to a BArclays immediately after the Court petition......

bokeh

Have booked in with my local county court (had to book an appointment) for next week, 15/4!

Amiga

Good for you mate!

This is the start of sorting out your life and moving forward.