Impossible Situation

sourcrates

If the OR suspects fraud, then he may get a BRO (bankrupcy restrictions order) for a period of time over and above the initial 12 months, in reality I doubt that will happen, fraud isn`t always easy to prove, and credit taken out in this way can normally be attributed to the OP`s gambling addiction, it will depend how far the OR wishes to go with this, normally bankrupcy is more of a box ticking excercise than an all out essay of your life.

His options, as set out above, are either to let this hang as it is, the creditors cannot do anything, even going through the courts he has no money with which to pay, so its a pointless excercise, after 6 years all will become statute barred, problem with this is the creditors will still chase him, debts will be farmed out to collection agencies, they won`t be aware of his situation, so its going to be constant letter tennis with them.

Bankrupcy would at least remove the creditor contact, write off the debt, and allow him to start again with a clean, but tarnished slate.
He won`t have a hope in hell of repaying 70k any other way, especially with the interest that must be accruing on the cards and OD`s.

The cost is £680, once paid, the wheels turn pretty quickly, its all done online, by post, and involves a phone call from the OR, they will be fair and frank with him, your money is best kept in your bank account, if your feeling generous, you could lend him the £680 quid bankrupcy fee, more important is to stop him from doing this again, he must get help with the gambling.

RidiculousSituation

Thank you so much for the advice. It certainly sounds as if BR will be the best option.

Would you recommend he gets a basic account before that?

Thank you so much

Sea_Shell

It seems crazy to me that credit is given without income checks in place, especially when we see how that unfolded in the past.

We're effectively back to the self-certification days of old (ok I realise that was mortgages) and look where that got us.

sourcrates

RidiculousSituation wrote: »

Thank you so much for the advice. It certainly sounds as if BR will be the best option.

Would you recommend he gets a basic account before that?

Thank you so much

If, that is what he choose`s to do, then pre-preperation is everything, his bank accounts will be frozen, so he will need access to cash to live on, after he is declared bankrupt, then get a new basic account, this must be with a bank with whom he has no debt, certain banks are more bankrupcy freindly than others.

Ten banking groups offer these fee-free basic accounts:

Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group (Bank of Scotland, Halifax and Lloyds), Clydesdale Bank and Yorkshire Bank, Nationwide, RBS Group (NatWest, Royal Bank of Scotland and Ulster Bank), Santander, TSB and Virgin Money.

RidiculousSituation

I do agree SeaShell that no employment or income verification is nuts!

Can it be that every lender just goes off anything put on the form? Surely they cannot be that reckless with the money that they lend out.

I am very thankful for the time you have have all taken in responding .

Thank you SourCrates for the detailed responses.

cymruchris

Just to support some of the other comments above - definitely don't offer your own resources to help pay the debt. From the situation you've described, and the level of debt involved - bankruptcy is certainly the way forward - especially if he has no assets. Bear in mind if he owns a car over £1000 in value - that will be sold. It may be a help if you were to offer to loan the money to cover the bankruptcy fee, but it's going to be a very tough journey for him ahead. Bankruptcy will mean that for the next 6 years he'll have difficulty getting credit unless he's built up some very good behaviour. And I also know that the OR doesn't like to see people having gone bankrupt twice - so he should be clear that this, although a way to get through it, is not the easy option you can just trigger as often as you like. It's not a get out of jail free card in relation to debt. I hope he keeps up with the support he needs, and takes some strong lessons from what he's been through - and the next few years financially are not going to be easy. Be supportive - but don't throw away your own money trying to help.

RidiculousSituation

Thank you again for the advice. We let him use our old car as a run around. Prob worth approx £1500. But after what he’s done they are welcome to it if that’s what they wish.

I just hope he doesn’t land in legal trouble when he has to explain all of this the the people that process the bankruptcy, as I am sure they will be shocked too at the lending whilst unemployed, so he will have to be honest with them.

xlnc99

how is it possible to get 70k credit ....

granted i know he lied on his application form and said he was working but even still. They would have checked his credit file and for him to get 70k of credit is insane! What salary did he put on the forms!

im not buying this at all

RidiculousSituation

His application stated he was earning £60,000 PA.

I’m sorry what are you not buying? I’ve clearly stated the facts of what has happened. He is unemployed which is how I am also shocked he racked up such a ridiculous amount of debt.

It has been building over quite a few months.

What would be the point here to lie in this post? I am looking for the best advice to help him.

AndySandy_2

It’s unsecured debt I assume, get a job abroad for a few years and forget about it. I know several people that have done exactly that and not heard a peep.