reckless behaviour before bankruptcy

sosilly81

Hello.
I have decided that I need to go bankrupt. This stems from a severe gambling problem which I am getting help with.

Problem is that I took out 25k in loans to consolidate other debts. This was only 2 weeks ago and I lost the consolidation money gambling.

Obviously I am now concerned about whether or not I will face criminal charges. I didn't intend to gamble it when I took it out but it was a moment of compulsive madness.

I have BR hearing lined up for the 17th February. Am I feeding myself to the lions? Will I be charged with fraud?

Please advise as I am worried sick.

A4445

You may get a BRU/BRO for borrowing money that you had no way to pay back. I had one for 3.5 years for borrowing money in the 6months before bankruptcy with no reasonable way to pay it back. You will just have to be honest with the OR they won't be shocked they have seen it all before plus you are getting help for your gambling issues.

Try to relax a little what's done is done, the OR was very nice with me non judgmental and professional.

TheGardener

Based on the brief details you give (you don't say if you have any assets) - I imagine BR is probably the only option you actually have right now so its kind of academic to wonder if that is a good idea or not. However, I wouldn't go so far as to say 'feeding yourself to the lions' was the right way to describe the consequences - there is no such thing as a 'debtors prison' anymore.
Taking a loan in itself is not a criminal or fraudulent act (unless you lied to or misled the lender) but given your circumstances it may indeed be seen as 'reckless'
There are some good threads on gambling debts so have a look round on this board. Obviously getting help with your addiction is going to be the first and most important step in finding your way back, as is working out how you will manage financially after your BR as you will have no access to credit to gamble with.
Update edit - having just read your other post about AMEX, I see you have no assets.

standalone

If the other party was to get a BRO/BRU for a number of years, how would this impact on their day to day life.
I know about not being able to hold certain public office or be a company director but I am wondering what is the main problem for an ordinary Joe when handed a BRO/BRU.

If you see what I mean.

A4445

It made no difference to my every day life, it just meant I couldn't apply for credit until it was satisfied.

The only down side is that as the BRU was given to me 10months after the bankruptcy it will remains on my credit file for a further 10months.

My bankruptcy came off Dec 15 and the BRU is there till October 16. However it's currently only showing on Experian, call credit and Equifax didn't report it. I had serious debs so it's a small price to pay to be restricted for a further 10 months and I think the OR was very leanient with me BRU should have been longer in my opinion!

standalone

So would it be possible to say then that the other party should not over stress at the possibility of receiving a BRO or BRU in the grand scale of things.

A4445

Absolutely nothing to worry about all the OR does is send you the paper work in the post. You sign and send it back and that was the the last time I had any contact with the OR.

The only time you would have an issue is if you were to break the conditions of the BRU. I didn't apply for any type of credit until 2 months before the bankruptcy came off my credit file, I'm now rebuilding so I can have a mortgage in the next few years.

alltaken

A4445 wrote: »

It made no difference to my every day life, it just meant I couldn't apply for credit until it was satisfied.

The only down side is that as the BRU was given to me 10months after the bankruptcy it will remains on my credit file for a further 10months.

My bankruptcy came off Dec 15 and the BRU is there till October 16. However it's currently only showing on Experian, call credit and Equifax didn't report it. I had serious debs so it's a small price to pay to be restricted for a further 10 months and I think the OR was very leanient with me BRU should have been longer in my opinion!

Did you only become aware of the real possibility towards the end of your bankruptcy, or well after being discharged? I get that you knew it was likely but did they surprise you after thinking you were discharged and clear?

Amiga

Hey Sosilly81

I had a BRU for gambling as well, you can check out my thread below.

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


As long as you haven't lied on the application form for the loan, such as lying about your income, there will be no criminal charges. You will more than likely be looking at a BRU though. I had one and it isn't the end of the world. The important thing to do it stop gambling. If you like I can send you some links to people that will be able to help.

All the best.

A4445

alltaken wrote: »

Did you only become aware of the real possibility towards the end of your bankruptcy, or well after being discharged? I get that you knew it was likely but did they surprise you after thinking you were discharged and clear?

I knew It was very likely I was going to get one the OR basically told me so during my face to face interview. I asked an estimate of how long and she said about 5 years.

It took more than 6 months from the interview for the paperwork to to arrive. The paperwork stated it would be 4 years and if I accepted the BRU it would be discounted to 3.5 years for admiitting guilt and avoiding the OR having to pay costly court fees that are incurred for a BRO.

My BRU ended April 14 I didn't breach any of the conditions, it all went smoothly. I will however be glad when it's removed from Experian in October.

sosilly81

Thanks everyone for the replies. I feel a bit better now.

Amiga- I had already seen your post and read through it twice. You are an inspiration.

So I have my first GA meeting tomorrow which should help a lot I hope. I also think the gambling came as a result of stress/depression. Have been to the doctor and been prescribed something to help deal with this too.

I am just worried that as the loans were so recent I read somewhere that they could do me for fraud. I didn't lie on the forms. Except on saying that they were for consolidation which was the intention but I slipped up. Tried to win a little bit with a small bet then chased my losses and lost it all.

The past week has been awful. Constant worrying, not eating or sleeping. I am determined to get my life back on track and just hope the bankruptcy goes smoothly. It will be on the 17th February.