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  • FIRST POST
    • beans89
    • By beans89 12th Aug 18, 11:41 PM
    • 7Posts
    • 1Thanks
    beans89
    Applying for Bankruptcy
    • #1
    • 12th Aug 18, 11:41 PM
    Applying for Bankruptcy 12th Aug 18 at 11:41 PM
    Hi,

    I can't afford the monthly repayments on my two credit cards and the amounts just keep on increasing due to interest (I have looked around for balance transfers but can't get accepted). I have made the decision today to apply for bankruptcy.

    I feel this is the best option for me as I need a fresh start. I can't cope mentally knowing that I am drowning in debt. Entering into a DMP or an IVA won't shift this feeling. It's like a vicious circle - I have mental health issues and gamble online in an attempt to get out of debt, but in the end I just end up further in debt. I don't want to have the option of applying for credit. I have no assets, no car, I rent my house. My debts are unsecured.

    So today I have cancelled my standing orders to the credit card providers (I was paying an amount towards the debts but it wasn't the minimum payments) and plan to cut off all contact from them for the next 3/4 months whilst I save this money I would've normally spent on the debts, and use it to apply for bankruptcy in November/December. As it stands, I don't have any spare money to apply for bankruptcy today.

    I will seek help towards my gambling and I understand that I will more than likely get a BRO from the IP. I know I'll get numerous phone calls and letters off the credit card providers over the next few months whilst I gather the bankruptcy money together. Do I just ignore these? What are the chances that somebody will turn up on my doorstep?

    Also, I work as an Administrator in a Financial Advisor's office. I am not credited, qualified etc. I am not a member of the CII. Will this bankruptcy affect my job? The last thing I want is to lose it. I know bankruptcy can affect people working in the financial services sector however I was under the impression this was like a Financial Advisor and not an Administrator working for him? I have looked over my contract and staff handbook and there is no mention of notifying work of bankruptcy etc. Do I have to notify them? Will the IP notify them? We are only a very small company so don't really want everybody knowing the ins and outs of my personal life (I know my details will be published on a register but people don't actively go looking for stuff like this). We don't have a HR department. Just my boss and his paraplanner.

    Thank you
Page 1
    • Craig1981
    • By Craig1981 13th Aug 18, 6:25 AM
    • 565 Posts
    • 279 Thanks
    Craig1981
    • #2
    • 13th Aug 18, 6:25 AM
    • #2
    • 13th Aug 18, 6:25 AM
    good morning

    no judging, but 12 months ago on previous posts you also had issues with gambling. has this been looked into and have you taken appropriate steps to stop online gambling? i suggest self exclusion on GamStop - they cover majority of online casinos, and soon should have all listed casinos on their site
    https://www.gamstop.co.uk/

    as small company you work for, speak to your boss to find out about DRO/bankruptcy and how this will affect your employment, if done. Or else speak to CAB, Step Change, Payplan or National Debtline to find this information out, and what insolvency is right move for you

    if it is only two credits cards like you say, then write to both of them, telling them you have financial difficulties, and they should freeze account and interest - come to a payment plan with them directly while you sort out what action you want to take ongoing. it could be that payment plan with them might be best thing for you.

    what is combined total of your debt? if under £20k and you meet some other criteria, DRO would be your best option
  • National Debtline
    • #3
    • 13th Aug 18, 11:12 AM
    • #3
    • 13th Aug 18, 11:12 AM
    Hi beans89,


    It is important to get full advice on bankruptcy before going down this path. When you go bankrupt you will get a nil tax code, so that will make your employer aware of the situation. Plus the bankruptcy is published in the London Gazette (and possibly your local paper) as well as being on the insolvency register. If there is nothing in your staff handbook or contract about the bankruptcy it shouldn't affect your employment, but it is hard to say for certain, especially when you are in the financial sector.


    Bankruptcy can affect some private tenancy agreements if that is who you rent from, so you should check your tenancy for an insolvency clause. You will also need to produce a SOA and if you have more than £20 per month disposable surplus, then the OR can take all of this for up to 3 years under and income payment arrangement. This is why it is important to get more advice about your options in case a DRO, or DMP/IVA may be more suitable.


    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
    • Willing2Learn
    • By Willing2Learn 13th Aug 18, 11:27 AM
    • 1,836 Posts
    • 1,419 Thanks
    Willing2Learn
    • #4
    • 13th Aug 18, 11:27 AM
    • #4
    • 13th Aug 18, 11:27 AM
    Hi beans89,

    You know, gambling can sometimes be a coping mechanism to manage the stresses of life. Have you considered therapy? If not, then I respectfully suggest you try it and see. Ask your GP about talking therapies if you feel like it...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • LeicesterT
    • By LeicesterT 14th Nov 18, 3:00 PM
    • 4 Posts
    • 0 Thanks
    LeicesterT
    • #5
    • 14th Nov 18, 3:00 PM
    • #5
    • 14th Nov 18, 3:00 PM
    Can a bankruptcy be rejected if all the debt is due to gambling? Anyone applied for bankruptcy having ran up debt from gambling?
    • fatbelly
    • By fatbelly 14th Nov 18, 3:04 PM
    • 13,131 Posts
    • 10,191 Thanks
    fatbelly
    • #6
    • 14th Nov 18, 3:04 PM
    • #6
    • 14th Nov 18, 3:04 PM
    Can a bankruptcy be rejected if all the debt is due to gambling? Anyone applied for bankruptcy having ran up debt from gambling?
    Originally posted by LeicesterT
    Usually it's a Restriction Order or nothing

    Examples here

    https://www.insolvencydirect.bis.gov.uk/IESdatabase/viewbrobrusummary-new.asp

    pick someone with a 4-year BRO and you may well find gambling in there
    • LeicesterT
    • By LeicesterT 14th Nov 18, 3:16 PM
    • 4 Posts
    • 0 Thanks
    LeicesterT
    • #7
    • 14th Nov 18, 3:16 PM
    • #7
    • 14th Nov 18, 3:16 PM
    I donít really understand this link - so does the restriction mean they canít go bankrupt or they have gone bankrupt?
    • fatbelly
    • By fatbelly 14th Nov 18, 3:18 PM
    • 13,131 Posts
    • 10,191 Thanks
    fatbelly
    • #8
    • 14th Nov 18, 3:18 PM
    • #8
    • 14th Nov 18, 3:18 PM
    I donít really understand this link - so does the restriction mean they canít go bankrupt or they have gone bankrupt?
    Originally posted by LeicesterT
    They've gone bankrupt and got a restriction order
    • LeicesterT
    • By LeicesterT 14th Nov 18, 3:20 PM
    • 4 Posts
    • 0 Thanks
    LeicesterT
    • #9
    • 14th Nov 18, 3:20 PM
    • #9
    • 14th Nov 18, 3:20 PM
    Restriction from what? (Sorry if this is tedious for you but why does a restriction order matter?)
    • fatbelly
    • By fatbelly 14th Nov 18, 3:42 PM
    • 13,131 Posts
    • 10,191 Thanks
    fatbelly
    You asked 'Can a bankruptcy be rejected if all the debt is due to gambling?'

    The answer is- it's not rejected but you are are likely to get a restrictions order. Google is your friend here.

    https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/bankruptcy-restrictions-orders/
    • ToxtethO'Grady
    • By ToxtethO'Grady 14th Nov 18, 5:40 PM
    • 182 Posts
    • 93 Thanks
    ToxtethO'Grady
    Restrictions
    Your debts are written off after the year however you are under the duties of a bankrupt and show on the insolvency register for longer, 2-15 years but it can be extended longer than that through the courts
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