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This is where to post your first questions about any debt problems you have
I am in such a bad place at the moment with regards to my finances and this having a big impact on my mental health. I have been looking through my options since March and still have no clue what to do for the best. I've been told that bankruptcy could be the best option however I have so many concerns regarding it.

1) Since March I have been in contact with some creditors, if a online chat service was available, who have reduced my payments and put a hold on interest and fees ect. Other creditors where this option isn't available I have tried to make payments when I can. I suffer from anxiety and depression and therefore find it very difficult to talk on the phone and it becomes very stressful for me. My concerns over this is will this be seen as preferential payments.

2) Over the last 3 years I have been making monthly payments of £182 to a friend of mine as they got a loan out for me when I was struggling on the agreement that I would make the payments each month. Will they be expected to pay any of this back by the OR if I go bankrupt?

3) Since being off sick I have developed a gambling addition as gambling became an escape for me but this led to me gambling money I couldn't afford and using money that should have paid my bills to gamble. I was also trying to win big as I knew I couldn't pay all my bills but this obviously made things even worse. I feel really stupid and very disappointed in myself but I am now getting help via Gamcare and have self-excluded and downloaded blocking software to prevent this from continuing. Will this have a negative impact if I was to go bankrupt?

I am also currently off sick from work due to anxiety and depression and from 21st August I will only be getting half pay. I really need some help. I am really struggling and dealing with my finances is becoming really difficult for me.

Any advice would be very much appreciated. Thank you for reading.
Hi CoopMJ

Sorry to hear about your situation. First of all I would say that there is always a sensible solution if you get the right advice. For that you have come to the right place.

If you have been making payments to some creditors and not others this is certainly not regarded as preferential payment if you go bankrupt. You do not have to owrry about this at all. A preferential payment is where you for example sell a car and pay off a debt owed to a family member in full in one go.

The money you owe your friend is a potential issue. You can't officially continue to pay them if you go bankrupt and so you will not be able to include the payment of £182/mth in your living expenses budget. The only way to continue paying them is to do it unofficially by making savings from your agreed living expenses budget. However this will not be easy. That said if your income is lower than your reasonable living expenses it wont matter either way.

If you go bankrupt, you have to declare that you have lost money through gambling. However I am sure that for you this will not not a big issue though. The OR will not treat you differently to anyone else. The only thing is they might require you to accept a Bankruptcy Restrictions Undertaking. But all this really means is that the time you are not able to be a company director or borrow more money will be extended (normally for 3.5 years past the standard bankrupt period of 1 year)