IVA Bankruptcy or DRO Gambling problem addiction

PTR78

Hello,
I'm currently in financial turmoil due to gambling. My partner to whom I have 3 young children to have split on bad terms. I'm currently living with my parents. I work and earn a salary of approximately £30,000 a year.

I pay the CSA for my children. I'm currently going through the family court to gain access to see my children. This has been a serious mental strain on me and in a state of uncontrollable mental torture that I could only compare to self harm

I've managed to rack up approx £10000 of debt over the course of a few weeks to online gambling. I'm a compulsive gambler and I have always admitted this horrible disease over the course of my adult life. I was approximately 5 years gamble free prior to this and took help through Gamcare for my addiction this:help gave me my life back.

After the breakup I went back to what I knew best. The one and only comfort that I knew that would give me the ease and escape that I needed. Bets got bigger gambles got bigger the more I lost the more the harm would ease my mental torture. I had sold my soul to the devil.

I don't know where to turn and I'm in a very bad place mentally. I feel like I have nothing I want my life back but don't know what to do. I'm hanging on with my job but it is becoming more and more stressful as to whether I can cope much longer. I want someone to give me some advice as to how I need to deal with this. I've spoken to an online company who are advising I enter into an IVA. I have a small amount of disposable income and have nothing to my name other than my car worth approximately 1000-1500£

I'm ashamed that I have done this and feel completely numb as to how I've basically destroyed myself overnight. I'm staying strong but this mask is becoming too hard to wear. I'm completely numb as to how I'm going to dig myself out of this.

Please could someone give me advise on what I should do? I'm getting where I just want to shut down and give up but my instinct is stopping me. I've signed up to Gamstop and I'm in contact with Gamcare to help me.

Oliver2809006

Sorry to read your situation.

Unfortunately I went through the same gambling trap, doing so for over two decades. It's a horrible addiction and comes to a point where money isn't at the top of the list it robs you of - the mental impact, relationship breakdowns, time and self esteem are even worse.

Personally I went through an IVA in 2005 which I completed only having to do another one in 2013 due to my compulsive gambling which eventually failed in early 2016.

Racking up over £50,000 in debt and still not learning my lesson with my gambling I went bankrupt in July 2016.

There was certainly relief to get rid of that burden of debt but still took me many months to actually stop gambling.

However once I stopped a light instantly appeared and I could function again, meeting things head on and my self esteem returning and relationships improving.

I would highly recommend Alan Carr's book of 'Stop Gambling The Easy Way' and read / understand the addiction to help.

As whether you do an IVA, my experience is that 3/4 of your payments will end up going to the IVA company themselves, with the creditors getting very little back.

Basically the IVA companies want you to sign up because it's massively in THEIR interests not necessarily yours!

With Bankruptcy you'll be discharged in a year but if you've surplus cash which you mention the Official Receiver will claim that over the next 3 years to repay your debt.

I would think hard on the best route to chose but contacting / seeing The Citizens Advice Bureau is a good idea and they importantly offer impartial advice.

The thing you think is the cure is actually the thing that is the problem / making you unhappy!

PTR78

Thanks for your reply and advice. The company is in the process now of dealing with my debt. Obviously he wants to take on my case. To be fair I'm happy with the payments and is confident I will be accepted however I'm not too sure as like you said they want the business.

Just want it to be over, I'm never going to be able to have full control over my finances. I'm a hopeless waster that destroys it all when given any opportunity.

I will speak to citizens advice first as I've read that in a bankruptcy like mine I would be given a IPA which will usually be over a 3 year term. Which is obviously a quicker solution.

One more thing to mention most of the debt was in the space of a 2 week binge and I have yet to default on these debts as of yet? Would this bear any issue with my situation. Gamcare and Gamstop have been notified the later for the maximum term.

Flyright

In bankruptcy you may well receive a BRO given the circumstances of the debt accruing. It would be about protecting you from your own future actions as much as it would be about protecting future creditors.

Oliver2809006

My vast debt was accrued through my gambling - my bank statements were absolutely rife with them and no hiding the fact.

Even though this was the case no special things were put in place other than just an IPA after the bankruptcy went through as I had surplus cash (another story!).

Bankruptcy cost approximately £750 to apply for and can be refused if they think you've a more appropriate solution like an IVA instead.

Are you sure you can't pay this debt back and avoid going into an agreement of some sort?

Give up the gambling and going forward is a far clear path and achievable.

fatbelly

Oliver2809006 wrote: »

Bankruptcy cost approximately £750 to apply for and can be refused if they think you've a more appropriate solution like an IVA instead.

It's £680 and the second part of that sentence is incorrect - the adjudicator only has to determine if you are insolvent, which you would be with either option.

If a DRO is an option then you are not a homeowner and that would be the first insolvency option to consider.

Your debts are under the debt total threshold.

Is your 'small disposable income' under £50 per month ? That's the second threshold.

You say your car is worth £1000-1500. It would need to be valued at under £1000 on Parkers Guide which if you check (it's free) it probably will be.

PTR78 wrote: »

I will speak to citizens advice first as I've read that in a bankruptcy like mine I would be given a IPA which will usually be over a 3 year term. Which is obviously a quicker solution.

An IPA is always 36 months and relates to your surplus income - anything over £20 per month.

It has nothing to do with your conduct, which is where a BRO/BRU would come in and that just delays your discharge.

There's an equivalent in a DRO (DRRO/DRRU) but they are extremely uncommon.

Let us know what CAB say.

TBH, it sounds like any form of insolvency would be overkill for someone earning 30 k, living with their parents and having 10k of debt. I'd go with a debt management plan and ppost on the dfw board

betterdaysahead

Wow - give up gambling? What a wonderful idea! I'm sure the poster hasn't thought of that! I'm sure your intentions are good, but clearly you've never suffered from an addiction. I speak from experience, and it is a whole lot more difficult than just deciding to stop. The reasons why someone gambles need to be addressed. Generally, and in my own instance, gambling is an escape. The underlying issues need to be looked at. The opposite to addiction is connection - if you have a connection to the real world, the desire to gamble is removed. It is an horrible, horrible addiction to address, but it is possible to overcome if you meet it head on and try to understand yourself and the reasons you do/did what you do/did. A huge thing is to talk to those closest to you. Part of what kept me trapped in the gambling cycle was the idea that I couldn't tell anyone - that they wouldn't understand. When it finally came out, I was lucky that those I cared most about were more understanding that I ever could have expected. Good luck!