Been very stupid - will I go to jail?

Terrified77

I'm a young mum, recently been left by her husband (October 07) and am horribly frighteningly in debt. I am depressed and on medication. Over the past few months, I have fallen behind in my repayments to credits cards and also my mortgage (after my husband left and refused to pay). I've been hiding from everyone. Not paying minimum repayments at all. Spending has increased bizarrely enough because it's the only thing that has kept me 'sane'. That scares me. I think I have a serious problem.

I am wondering whether I should go bankrupt.

I have over £30k of secured and unsecured debt. £10k was taken out in November '07 - paid off £2k on credit cards, loaned £2.5k to a family member which I'll definitely never see again, and the rest was spent trying to enjoy life with my child and pretending we didn't have problems.

I took out a further £18k just last week - £11,200 has been spent repaying the old loan, but the rest is just sitting there. I was going to use it to pay £3,500 and clear my credit cards, but since that will still leave me over £20k in debt, with no real prospect of paying it back and living a half decent life (losign the house so will have to rent again) I'm wondering whether to 'hide' the left over money with a friend, go bankrupt and then get the money out of 'hiding' to spend on a deposit for renting a flat for myself and my son.

What will happen to me if I take this course of action? What questions will the bankruptcy people ask me? Will I end up going to jail for fraud? I'm so scared.

I know this probably sounds crazy but I JUST DON'T KNOW WHAT TO DO! I feel some days that killing myself would be an easier option than having to face up to how STUPID I've been. My life is totally worthless.

FeelingLow

the first thing you need to do is seek legal advice from one of the debt charites,

try to calm down the hardest part is now done by admitting that you have a problem hun you will get lots of advice & help here

Terrified77

I went to see a financial advisor last month for a free appointment. He said that, due to my husband leaving, my outgoings were higher than my income and he thought maybe bankruptcy was the only option for me. Apparently IVAs don't take into account secured debts???

Anyway, since then I've ignored everything he said and carried on the way I was. Pretending that there was no problem, ignoring phone calls, and spending on my son (even booking a holiday) so that he wasn't aware of how much trouble we were in. And of course taking out another loan.

I feel sick. I know I'm probably in deeper than any of you because of my stupid recent actions and I terrified that I'm going to go to jail.

philnicandamy

do as FL suggested Give one of the numbers in my sig below a call first as soon as you possibly can, whatever you do DONT PAY for anymore advice the cccs & nat debtline are more than capable of helping you for free...they will offer support and advice on what to do next...I wouldnt go down the road of hiding cash here and there if your found out it & you do go BR then the official receiver wouldnt take kindly to it...nothing involving a jail term though, the receiver will go through EVERYTHING though wanting to know why you took out so many loans...not as scary as it sounds

Get some advice...soon

Terrified77

What about the fact that I took out a loan when I already knew I was in trouble with my debts, didn't pay off the credit cards, and booked a holiday. And then squandered the rest. And then applied for bankruptcy like a month or two later. Surely they would lock me up and throw away the key for that! Maybe for my own benefit!!!!

tigerfeet2006

You will NOT get sent to jail. They do not do that any more.

The worst that will happen is you will get a BRO which just extents the restrictions of bankruptcy.

I know you have spoken to someone but would advise that you ring National Debtline or CCCS and have a chat with them so you can put your mind at rest.

Your circumstances are not the worst we have seen, so take a deep breath, calm down and make that call.

(((((((hugs))))))

outrageous_monkey

(((((((((((((massive hugs))))))))))))))

Well done on posting, I really wish I could offer some fantastic advice but I cant, cos I dont know all the answers...

..but I wanted to say

your life isnt worthless, its worth so much, I bet you have fantastic children and I know they will love you no matter what.

From the little bit I have picked up from here, I think if you stashed the cash away then the OR would want to know what you spent the loan on....if you cant show what you spent the money on then I think questions could be asked.

Keep refreshing cos some one with loads more advice will be along very soon......dont think you're on your own!!

bluezone

Terrified77 -

First things first DONT PANIC. You have made the first step by coming on here and telling a load of strangers about your problem. Can you post a soa for us to see if we can help cut anything back?

Was any of the credit in joint names? If so then your ex is liable for half. Do you have a joint bank account?

Please dont panic and there are lots of us on here 24/7 available for being a shoulder to cry on and for advice. You may think your situation is pretty bad but believe me there have been people on here in worse situations - me included.

Make yourself a huge cuppa and write down everything you owe and that means everything It doesnt matter how big or small. Then either come back on here with what you have or phone one of the numbers in philnicandamy's signature and let us know the outcome.

Hiding the cash wont get you anywhere cos they will find it. When I went br the OR was very helpful to me and advised me on how much I could take out of my bank before he faxed over to them to tell them I was br.

Again we are all here for help and support

outrageous_monkey

Terrified77 wrote: »

What about the fact that I took out a loan when I already knew I was in trouble with my debts, didn't pay off the credit cards, and booked a holiday. And then squandered the rest. And then applied for bankruptcy like a month or two later. Surely they would lock me up and throw away the key for that! Maybe for my own benefit!!!!

You wouldnt be the first to do what you have done.

Take a deep breath and pick the phone up.......I bet who you end up talking to, will have heard stories like yours before.

dodecanese

Hi terrified
I highly doubt you would go to prison, at worst you might be seen to have been a bit reckless but thats nothing new to the OR. Sticking your head in the sand is nothing new and a lot of people- myself included -carry on happily spending and ignoring the little voice at the back of our heads telling us its maybe not such a great idea. The OR deals with bankruptcy each day- and your scenario will be nothing they havnt seen before.
As said before though- dont "hide" the money- think this is where ORs tend to get annoyed- again nothing involving prison though.
Give CCCS or National Debtline a ring. I know its easy to say but please try and take a deep breath and try to calm down- admitting youve got a problem and your debt is out of control is hard- once youve had a talk with one of the debt charities it will all become calmer.
All the best

seven-day-weekend

Hi there,

I've no personal experience of this, but just wanted to say that I've read many accounts on this board and yours is no way the worst that has been on. You've taken the first step by posting on here, now ring one of the free Debt Counsellors that the others have mentioned -do it now. From what I've read here you'll feel heaps better when you've done that.

Now this board also is always here for support, there is always someone here ready with a listening ear, a friendly word, or a bit of advice. Come here any time, even in the middle of the night there is always someone about.

Don't get 'hiding' any money, it won't help you or your son in the end.

There is a way out and it won't be anywhere as bad as you think. Knowing you have put wheels in motion to sort it out will make you feel a stack better.

Pick up that phone NOW!!