Am I going to be arrested for fraud?

peterkay369

Ok so I'm now at the stage of applying for bankruptcy and doing some last minute reading before pressing the button, I skimmed over something about debts obtained via fraud.

Long story short, my debts (over £65k in total) are 75% brought on by gambling. This was never the intention, I was going to buy a new car but something took over and I find myself in the situation that I'm in now.
Around £50k of the debt has been accumulated within the last 3 months as the gambling spiraled out of control. I haven't even made a repayment on a couple of the loans.

At the time the information I filled in on the application was correct and completely factual however after parents finding out about my gambling and debt issues I was kicked out and sofa surfing for a couple of weeks. I now have myself set up in a new place (renting a room) but my expenses are now obviously a lot more than when I was living with parents for nothing.

I thought I had about made peace with things and the fact that I've screwed my life up in the short term however now I am terrified that I could be arrested for fraud as I think some of the creditors will argue against my applications given how quickly things have gone wrong. I'm just not sure what to do anymore and just feel like giving up

A4445

When you say fraud do you mean you give false income on applications or you applied to use the funds to buy a car and then spent it elsewhere? Maybe a good idea to get advise from a debt charity.

peterkay369

All the info I put on the applications was correct at the time but my circumstances have changed dramatically upon my gambling/debts becoming exposed over the last month or so, but with it being in such a short space of time I wasn't sure if the creditors would say the applications were fraudulent? I did intend to buy a new car, but everything just went wrong.

Flyright

Just curious to ask why you were applying for credit to buy a car when you already have a car (worth £10k as you previously mentioned..?)...?

A4445

As far as I'm aware they can't arrest you for unsecured debt. If the information you gave at that time was correct I can't see that as fraud. The OR may have something to say about gambling it away but you won't be the first or last to do so. I expect someone with more experience will reply to you shortly. I would get some legal advise ASAP.

peterkay369

To buy a different car. I was going to sell mine and the loan amount which would have covered the rest

A4445

My debs were a similar level to yours. I didn't have a gambling issue but a spending problem. I was given a BRU for spending money I had no reasonable way to pay back. I've done my time it's all come off my credit report. Hard lesson learnt!

peterkay369

Hi A4445, thank you for your response. I know I'm going to receive a BRO because of the gambling. I'll give StepChange a call after work

Arleen

If you were to lie on credit application to spend it on gambling, that for sure could be seen as fraud and could get you criminally charged. But as this isn't the case, as you applied truthfully and then your circumstances changed (they would have to prove differently) and you spent the money otherwise. Not a smart thing to do, but for sure not a crime.

National_Debtline

Hello again K22SR,


I think it would be best to contact the Insolvency Service 0300 678 0015 to discuss this and hopefully put your mind at rest. It is very unlikely that there will be any further action beyond the extension of the bankruptcy restrictions.


Gambling is an addiction and is likely to be viewed as a health issue that contributed to the debt, rather than stating you took out credit with no intention to repay.


Laura
@natdebtline

owlet

I agree with the previous posters, you will almost certainly get a BRU/BRO but there have been worse cases than yours posted on here and the BRU is as bad as it gets. You will need to speak to one of the debt charities anyway before going br, so giving Stepchange a call will be a good thing.