I've been stupid and I'm terrified

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devon_guy
devon_guy Posts: 293 Forumite
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in Bankruptcy & living with it
So long story very short....been on a DMP with Stepchange for several years which has been running fine. I've got myself into debt through gambling this last few months and to clear it all I took out a bank loan of 14k to pay it off which I realise was silly because a) I can't afford it and b) it goes against the rules of a DMP.

I know I'm going to have to call Stepchange tomorrow and fess up but I'm scared they'll refuse to help me and I think realistically I'm going to have to go bankrupt but having only had the loan a week, I can't think that's going to go down too well either.

I'm really low and don't know what to do about it.
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  • TheGardener
    TheGardener Posts: 3,303 Forumite
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    devon_guy wrote: »
    I'm going on a trip of a lifetime. In May I'm off to Singapore for 10 days and have really splashed out and am flying first class. Can't wait!

    ...well this won't help either. I know it was 2 years ago but you were presumably still within your DMP?

    Your best bet is to call Stepchange and make a start - there is no point putting it off. There is no financial problem that doesn't have a solution- even if that solution is fairly drastic.

    BR may solve your problems for now - but you will need to learn to manage your finances and live within your means for the foreseeable future. Do you have assets you stand to lose? House etc?
  • devon_guy
    devon_guy Posts: 293 Forumite
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    I don't think I have any equity in my house no.
  • Minkym00
    Minkym00 Posts: 770 Forumite
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    Well you probably already know that what you’ve done is a misconduct in bankruptcy. You are looking at a BRO and I would suggest you’re looking at 8-9 years. Borrowing with no reasonable expectation of paying is a lower bracket offence, but the gambling and the closeness to the bankruptcy order would be aggravating factors that would push up the length of the BRO.
  • 023456789
    023456789 Posts: 147 Forumite
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    Stepchange in my experience have been very understanding and helpful when it comes to things not working out regarding the DMP. The best thing you can do is to call them up tomorrow to discuss your options.
    Don't worry it'll all work out in the end :beer:

    Pushing through the mountain
  • TheGardener
    TheGardener Posts: 3,303 Forumite
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    devon_guy wrote: »
    I don't think I have any equity in my house no.

    The OR has 3 years to decide if they want your property - no equity now is reassuring but if there is a post-brexit/brexnot house boom (I know...but stranger things have happened...) then there may be some equity in a couple of years so its important to keep that in mind.
    What is more important is, can you afford the mortgage and the upkeep of the house after BR?
  • ToxtethO'Grady
    ToxtethO'Grady Posts: 342 Forumite
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    If you haven't made the first payment on the loan the loan company can consider fraud proceedings, as you took out the credit with no consideration of paying it back. This could affect the loan in a BR if they do as it will not be discharged at the end of the BR.
    As mentioned above it would be likely that the OR would present you with a Restriction due to the gambling and taking out recent credit with no intention of paying it back. Your debts would be written off on discharge, except maybe the fraudulent one, it would just mean you are classed as, and be under the duties of, a bankrupt for the term of the restrictions.

    Probably better to stay on the DMP for the longer period it's going to take you to be debt free, doing that. The loan provider could still consider fraud but you can argue that they didn't carry out a correct credit check. £14K for someone on a DMP sounds very high - did they do a credit check? Or did you massage your application?
  • cantcope
    cantcope Posts: 1,886 Forumite
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    I cant help with stepchange but i think a positive thing you could do that will give you support and encouragement would be to get to a gamblers anonymous meeting.
    It's so easy to get in the cycle of chasing losses and if you're anything like i was you wont stop until its all gone again.
    You'd meet people that have been through the same and are now enjoying life again due to the emotional support they get and the tools given to help them stop gambling for good.
    Wishing you well

    have a look on this thread https://forums.moneysavingexpert.com/showthread.php?t=1090463
    Last bet : 26th Oct 2006:j Debt free 25th Feb 2008:j Living "my" dream:T
  • philnicandevan
    philnicandevan Posts: 667 Forumite
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    And just to echo what cantcope suggested below is a user who posted his journey through bankruptcy in a very similar situation to yours....it's a little old now but gives an idea and thought or two



    https://forums.moneysavingexpert.com/showthread.php?t=1802595&highlight=
    Not quite a newbie as you think ;);) (the member formally known as philnicandamy!)

    FINALLY a qualified CAB debt caseworker 2015..:p
    BSC 58 :D
  • sammyjammy
    sammyjammy Posts: 7,389 Forumite
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    I am flabbergasted that someone was willing to lend you 14k when you have been in a DMP for several years!
    "You've been reading SOS when it's just your clock reading 5:05 "
  • mumofboys18
    mumofboys18 Posts: 5 Forumite
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    I think you should address the gambling first before trying to sort of these debts tbh. I'd worry that you managed to clear your feet and fell back into the same hole. Have you spoke with Stepchange yet?
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