Going Bankrupt after Christmas through gambling debt

kimkelly84

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Johno100

kimkelly84 wrote: »

And one last thing, could I go to prison as my debt is completely self inflicted?

Highly unlikely, the BRU/BRO has largely replaced prosecutions under the Insolvency Act, particularly where there has not been dishonesty.

One thing to bear in mind, you will need to be able to show the Official Receiver evidence of your gambling and how the debt of £43k has been accrued. Regrettably it is not unknown for dishonest individuals to claim their debts are as a result of gambling when the money is metaphorically or literally under the mattress.

debt_doctor

Hi,
I'm glad you have realised the addiction and are doing active things to deal with it.
So, with your questions; You won't be going to prison. In my view you will get a BRU/O and my guess is around 5 years (based upon what I've seen over the years)
You have not committed the offence of preference as I very much doubt that you paid off the credit cards with the intent to improve the credit cards providers position if you went bankrupt.
If you want help with any likely IPA, you will need to pop your SOA on here.
DD

Abitdown

I can't help you with any advice but I do wish you all the best in resolving your problems.

Saver-upper

Hi kimkelly84.
Well done recognising you have a problem.That is the hardest step.Wanting to do something about it is fantastic,and I wish you well.
This is the link to the SOA template usually used on MSE:

http://www.stoozing.com/calculator/soa.php

Good luck x

A4445

There isnt anything for Gas, Electric or Council Tax?

tigerfeet2006

kimkelly84 wrote: »

This is my SOA... Any advice would be more than welcome...


I have put £40 down for a cigarette Vapor as I usually smoke 20 cigarettes a day but know that this would not be allowed, would the OR let me have this just to ween myself off for a while?


Is the rest reasonable?


Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 0 I ASSUME IT IS JUST YOU IN THE HOUSEHOLD.
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800


Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 500
Management charge (leasehold property).. 0
Council tax............................. 0 DO YOU NOT PAY THIS?
Electricity............................. 0 DO YOU NOT PAY THIS?
Gas..................................... 0 DO YOU NOT PAY THIS?
Oil..................................... 0
Water rates............................. 0 DO YOU NOT PAY THIS?
Telephone (land line)................... 0
Mobile phone............................ 36
TV Licence.............................. 0 DO YOU NOT PAY THIS?
Satellite/Cable TV...................... 0
Internet Services....................... 0 DO YOU NOT PAY THIS?
Groceries etc. ......................... 220
Clothing................................ 60 £40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 194
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 DO YOU NOT PAY THIS?
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 MOST ORs WILL NOT ALLOW
Haircuts................................ 20
Entertainment........................... 50 MOST ORs WILL NOT ALLOW
Holiday................................. 50 £30
Emergency fund.......................... 10
Vapor................................... 40 NOT ALLOWED WILL HAVE TO COME OUT OF HOUSEKEEPING
Meals at work........................... 80
Dry Cleaning............................ 30
Total monthly expenses.................. 1370


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,370
Available for debt repayments........... 430
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 430

My comments in capitals.

tigerfeet2006

Also have a look at the wonderful Amigas diary.

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

apfelkirsch

I've just got some comments on your numbers - maybe it helps.

Mobile phone............................ 36

If you can get out of your contract, cancel it and get giffgaff. £10/month

Groceries etc. ......................... 220

I pay £100 for groceries in a 2-person household. Shop at Aldi or Lidl (if you have one nearby) or buy 'basic' products. Cook fresh and eat less meat.

Clothing................................ 60

To be honest, when I was in a situation which was a lot less worse than yours, clothes were the last thing on my mind. Wear what you've got and only buy anything if you really, really need it. There's times in life where you just have to go to Primark I'm afraid.

Presents (birthday, christmas etc)...... 50

Everyone who is close enough to you, will understand your situation and not expect a big present. Everyone is not, shouldn't get a big present. There's some great things you can get cheaply or make yourself instead of presents.

Haircuts................................ 20

It might be the right time to finally let it grow

Entertainment........................... 50

Entertainment doesn't always have to cost money. There's loads of free stuff to do, especially around London. It doesn't have to be the cinema, a nice film night at home is almost the same.

Holiday................................. 50

Again, potentially the wrong time for holidays.

Vapor................................... 40

As an ex-smoker myself, I know how difficult it is to give up for good, so I'm not telling you not to get an alternative. I vape myself but it's just something else you get addicted to. Patches worked quite well for me, unfortunately I was weak though...

Meals at work........................... 80

I usually cook more in the evening or just make sandwiches for the next day. You save a lot of money.

fermi

A budget for the OR is not a money saving or cutting down exercise as it's basic point, so some of those suggestions are not great as the OR will allow reasonable budgets for clothes/haircuts and others. The bar/guidance/budgeting figures they judge by are somewhat more generous than a pared to the bone moneysaving one.

See Tigerfeet's post above.

The emphasis for the OR/BR in this sort of case is, while not being excessively generous, to allow the BR to be able to meet 'reasonable domestic needs'. There also needs to be some wiggle room and slack so unexpected things can be coped with and bridged, as after BR credit is unlikely to be available or desirable to do that job. So the budget itself has to be able to cope.

tigerfeet2006

kimkelly84 wrote: »

Thank you so much for all your advice, the £500 rent that I will be paying covers all household bills as my boyfriend has said this is all I need to contribute.

OK. Can I make a suggestion. This is your opportunity to live a normal life. This bankruptcy is your fresh start. That fresh start means you can now look at paying the bills like a normal person. Sit him down and talk to him and ask to do so.Split it fairly ie: if you both earn the same then you pay 50/50. Adjust up or down depending on what the income difference is.


I do have a very large family with lots of nieces/nephews so was hoping to still be able to treat them from time to time.

This would normally come out of any savings you make in things like your housekeeping budget. This is why I think you need to look at the way thinks are divided in your SoA


I work in fashion so am expected to dress reasonably well and some clothes need dry cleaning.

The dry cleaning budget is fine. There is no problems with that.

I am maid of honour for my friend and she is booking to go to Barcelona in September so was hoping to be able to go to this but would understand if this is not accepted.

You are allowed a holiday budget, just not as much as you have put down. Again money can be taken from money saved from elsewhere ie: Housekeeping for 2 people is reasonable at £420 but if you only spend £300 in a month then that can be moved to other budgets.

I have very recently renewed my phone contract as the screen was broke and the battery was useless and I need my phone to pick up emails etc for work.

There is no problem with the phone budget.

I really appreciate everyone taking the time to reply.

I am going to court on Wednesday and my boyfriend is giving me the money for the court fees, would it be acceptable to be expected to pay him back. If an IPA was not set before my next wages do they back date it or would I be able to pay him back with the excess from my wages for that month.

No, you can not officially pay him back. He will become a creditor in your BR.

An IPA is not backdated usually starts a few months after your BR starts. It is usual for the BR to squirrel the money away for emergencies.

Thanks again.

Can I respectfully suggest that you are rushing into this with little thought to the long term consequences. You need to slow down and I think cancel the appointment on Wednesday and put a little more preparation in to this.

Do you have a BR friendly bank account sorted?