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devilsadvocate
Starting Member
8 Posts |
 Posted - 22 October 2010 : 20:28:00
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Hello
Currently I am in about 26k of debt, some with debt collection agencies and the rest with the bank (not defaulted yet)
I earn a decent salary but with rent costs, food, bills and paying debt back I am going more and more into my overdraft.
I have worked out my expenditures and based them upon example figures from other people on the forum I will have about £250pm left over.
I have researched bankruptcy but still have a few questions...
1. I changed my surname 3 years ago and some debt is in the old surname (50%).....will the OR think ive tried to commit fraud? (My mum got remarried when I was about 16 and changed my name, once I got older I changed it back, but it doesnt look good :S)
2. I am planning on moving house (renting), shall I do this before BR so I pass the credit check?
3. I dont drive to work but still need my car occassionally for work, its only work 1k...will they let me keep it?
4. Will the OR want to see my bank statements back months and months?
5. A very small of my debt was for holidays (more than a year ago) and stupid things like camera equipment (I have since sold it)....will the OR have a problem with this?
I am only 23 so want to be debt free so I can look at getting my own house once my credit history has been cleared.
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debtinfo
forum expert
2826 Posts |
Posted - 22 October 2010 : 22:29:53
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1. Not if you have a good reason that it seems you do.
2. up to you
3. would it be impossible to do your job with out it
4. They will take whatever you have, if they want more they will get them from thr banks
5. probaby not if it was a small amount.
You do realise that you will forever have to answer yes if asked directly if you have ever been bankrupt |
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devilsadvocate
Starting Member
8 Posts |
Posted - 22 October 2010 : 22:57:58
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Thanks for the quick reply
The surname thing is worrying me because I stopped paying the debt in my previous surname as I had to move pit of my parents and rent my own place. I then changed my surname and began using an account in the new surname which I had setup about 10 years ago. Stupidly instead of paying off the bad debt in the previous surname I continued to use the account in the new surname and they gave me an overdraft without me asking for it and then a credit card and it spiralled!!!
I never intentionally set out to deceive anyone and Lloyds didn't ask if I had a previous surname....the OR is going to see this as fraud isn't he?!?!?
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 23 October 2010 : 00:26:25
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Hi,
Although you changed your surname for a good reason, obtaining credit and bank accounts in your new name, even though you still had liabilities under your former name will be seen as misconduct by the OR, as although you say that you never had any intention of deceiving anyone, you have covered that one by stating that the bank never asked you.
So, really there is intent there, as by stating that as long as the bank didn't ask, you weren't going to say anything, as a result you accumulated further liabilities under your new name to the extent that you had obtained substantial further credit,
The test the OR will make, is what would a reasonable person think of your conduct?
I won't go on, but the liklihood is, that in the initial stage of the OR dealing with your bankruptcy, he/she will identify your case as one requiring further investigation, with a view to obtaining a BRO or BRU,which is basically to extend the restrictions placed on you in bankruptcy anywhere from 2 - 15 years.
The only thing that may help, is how far back do these debts go,that you accumulated under your new name?
Sorry if this isn't what you were wanting to hear, but being a former examiner I can clearly see that on the face of the information available, this would be referred for FI(further investigation)
Big Al |
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devilsadvocate
Starting Member
8 Posts |
Posted - 23 October 2010 : 08:59:22
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Hi
Thanks for taking the time to reply.
I was very young and stupid and assumed that I was doing nothing wrong as the bank were allowing me credit and assumed they would credit check me correctly as both surnames are on my credit report.
I didn't intentionally decieve but I am very much aware of how it looks and would not be surprised if the OR wanted further investigation.
How long I am bankrupt will not be an issue but I work for local govnernment and am 4 years into a lifelong career in IT (hopefully) so a fraud charge would effectively end all that!.
I earn a decent salary so the creditors would get something each month but if I lost my job to fraud, they would get nothing....I am not sure what to do.
Maybe a DMP or an IVA would be a better option? |
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debtinfo
forum expert
2826 Posts |
Posted - 23 October 2010 : 10:01:12
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| A BRO is not the same as Fraud, a BRO is a civil matter whereas fraud is a criminal one, it is unlikely that you would have a fraud charge. Fraud is where you have intentionally deceived for instance if they specifically asked you if you had other names or other credit and you had said no. A BRO is more about being irresponsible rather than breaking a criminal law |
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devilsadvocate
Starting Member
8 Posts |
Posted - 23 October 2010 : 10:27:17
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Ah I see, thanks for clarifying that.
I filled out the form for the current loan I have online and it didnt ask if I had a previous surname and I have had the account about 10 years (my surname was smith 10 years ago and then my parents changed it to jones and then I changed it back to smith) so the bank had no idea I changed my parents had changed it becuase they opened me a new account with HSBC and left the lloyds one dormant until I chose to use it after I changed my surname back to smith about 3 years ago.
Could I not just contact the debt collection agencies and change my surname with them to smith and then when I file for bankruptcy, the OR would see all the debt is in my current name?
Cheers |
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debtinfo
forum expert
2826 Posts |
Posted - 23 October 2010 : 11:33:54
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| part of the forms you fill in for bankruptcy ask about all names you have used in the past |
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paulgm_2000
Starting Member
49 Posts |
Posted - 23 October 2010 : 14:52:07
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I would just be as open and honest as you can with the OR.
They may just see it that you were 'young and stupid' at the time. I wouldn't imagine that it would be seen as fraud either.
A BRU is not really that bad in the long run either. You are still discharged after 12 months even with a BRU but you would have certain restrictions placed on you for the time of the BRU.
I would recommend you get some advice in person or over the phone from an expert. That's what I did and it really helped. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 23 October 2010 : 15:05:50
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although you may be flagged for FI the worst case scenario is a BRU which only extends the restrictions and you are still discharged after 12 months,
if you don't want to be a director of a ltd Co or a mortgage broker or MP its not a great deal.
and thats only if they deem it bad enough!!!
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 25 October 2010 : 12:21:14
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Hi,
with your further info, this wouldn't attract a criminal fraud allegation, but the OR would still have to assess whether it was in the public interest(PI) to obtain a BRO or BRU, which the examiner would do by completing a PI matrix, to achieve a PI score.
From what you've said, and from what I can remember of the PI matrix,it would be borderline for FI, so the worst at the moment that could happen ,is not to get ED. Being young, naive and stupid is always a good comment to make on your explanation in section 11 of the SOA.
Big Al |
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Topic |
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Is Bankruptcy the best option?
