48k unsecured debts & lost my job.

tyketkd

I borrowed the money and spent it online gambling over the last 3 years. My wife owns the marital home before we married and I have no beneficial interest as I did not pay towards it. I have mental health issues & take medication for them (ASD & PTSD) which lead me to gamble as a coping mechanism. I claim PIP enhanced and was awarded points for the managing money section. I also claim new style ESA in the support group so I am not expected to look for work. So my income will not improve moving forwards. While I was working I could afford the £1100 a month repayments but now I cannot. I have joined Gamstop to stop my online gambling. I also managed to gamble away my pension pot and criminal injury compensation money so it is not like I have only lost the money I borrowed. Is a DRO suitable or would the OR refuse on reckless gambling spending?

ManyWays

A DRO will not be refused because of the reckless spending, but you may get a Debt Relief Restriction Order, which prolongs the time you are unable to borrow without infroming the lender of your DRO, and other restrictions. You may feel none of them matter compared to the impossibility of repaying such a sum, see https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/while-a-debt-relief-order-is-in-place/debt-relief-restrictions-orders/

48k is quite near the 50k limit for a DRO, but if your debts are more than that bankruptcy should be possible.

And if you have any problems with a debt adviser querying DRO eligibility then bankruptcy is your obvious option. I suggest you first talk to your local Citizens Advice who have a better reputation for proceeding with DROs for unusual cases (your wife's house, the gambling, near the 50k limit etc); they can talk you through DROs or bankruptcy.

tyketkd

Thank-you for that information! My debts are definitely under £50k. I will make an appointment with the CAB.

Grumpy_chap

Did you receive any redundancy when you lost your job that could be used to reduce some of the debt?

Whatever you do, you need a budget so it is worth preparing a SoA (statement of affairs)

fatbelly

They are under 50k now but if interest is being applied they will quickly hit the threshold. If CA are a problem, I would try Money Wellness.

Can you report back here to let us know how you get on?