Reckless spending and BRO

So I’m now going through all my statements and in one year I’ve racked up a load on a Barclaycard. Used it when I had a shortfall in my current account but what’s glaringly obvious is I’ve just spent too much on food, Christmas and birthdays plus the general day to day. To the tune of £7000 plus interest. Is this viewed as reckless spending? Will I be issues with a BRO. I’d just kept thinking it would all be ok and it isn’t. I’m so anxious about it and scared. Can someone please help?
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Comments

  • National_Debtline
    National_Debtline Posts: 7,998
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    Organisation Representative
    Hi there,


    This is unfortunately a bit of a tricky question to answer because there are no set rules and it is ultimately at the discretion of the Official Receiver.


    They will tend to consider factors such as how big your family is and the level of other debt (as you won't be going bankrupt for £7k). I appreciate this can be worrying, but try not to panic. This shouldn't be a treated as a stand alone issue and the application will be assessed as a whole. Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • 927
    927 Posts: 46 Forumite
    No - the total debt is £26000 accumulated over 7 years. I had around the same amount 7 years ago but paid £12k off lump sum and the new debt has grown since I had my son. I am on benefits and received some child maintenance payments for around a year. My parents help me out nearly every month (to my shame as they don’t know about the debt) and it’s come to a bit of a crunch point.
  • Sorry what is the issue with reckless spending? Will this have an impact on any BR ? Would having a gambling addiction be viewed as reckless?
  • Flyright
    Flyright Posts: 424
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    Forumite
    The OR will examine how you incurred your debts. If you incurred credit when you were already insolvent then that is grounds for a BRO. And yes, gambling would fall into a reckless spending category. The OR will also look at the reason you gave for applying for credit that was spent on gambling.
  • PaulL2
    PaulL2 Posts: 47 Forumite
    Gambling is possibly a BRO issue but I doubt racking up £7k on fairly normal stuff would be - most people's bankruptcies involve overspending on credit cards either to make ends meet or to buy luxuries we end up not being able to afford! And very few get a BRO...

    Obviously a £5k holiday just prior to bankruptcy might be an issue (for example).

    In my case I was lucky as the examiner didn't go into detail on my card statements. I wasn't questioned about any purchase, even stuff not long before I went bankrupt. I could have done far worse, if I was a naughty person.
  • debt_doctor
    debt_doctor Posts: 4,595
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    Hi,

    The Insolvency Service tend to look at borrowing in the last 2 years more than other borrowing, but the stuff you describe is 'normal living' and I very much doubt it would be of much interest.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • fatbelly
    fatbelly Posts: 20,380
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    Forumite
    927 wrote: »
    So I’m now going through all my statements and in one year I’ve racked up a load on a Barclaycard. Used it when I had a shortfall in my current account but what’s glaringly obvious is I’ve just spent too much on food, Christmas and birthdays plus the general day to day. To the tune of £7000 plus interest. Is this viewed as reckless spending? Will I be issues with a BRO. I’d just kept thinking it would all be ok and it isn’t. I’m so anxious about it and scared. Can someone please help?
    927 wrote: »
    No - the total debt is £26000 accumulated over 7 years. I had around the same amount 7 years ago but paid £12k off lump sum and the new debt has grown since I had my son. I am on benefits and received some child maintenance payments for around a year. My parents help me out nearly every month (to my shame as they don’t know about the debt) and it’s come to a bit of a crunch point.

    Can't see any problem there.
  • Feral_Moon
    Feral_Moon Posts: 2,943 Forumite
    Hi,

    The Insolvency Service tend to look at borrowing in the last 2 years more than other borrowing, but the stuff you describe is 'normal living' and I very much doubt it would be of much interest.

    DD

    When you say borrowing in the last 2 years, does this refer only to new applications for credit or would it also apply to increasing debt by spending on existing low balance cards?
  • Flyright
    Flyright Posts: 424
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    Forumite
    It will include all credit incurred.
  • Feral_Moon
    Feral_Moon Posts: 2,943 Forumite
    Flyright wrote: »
    It will include all credit incurred.

    Credit or debt?
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