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- Sun Nov 28, 2004 4:49 pm #2261 I am considering bankruptcy if my creditors will not accept my proposal for reduced payments, but a couple of things worry me. Going back a couple of years ago although I didn't lie on my application form, I applied for two loans at the same time. Both were accepted and I had both loans (stupid I know). Should I have notified the lender of the second loan that I had taken out the first one?

Also I see that if you 'incurring a debt prior to the bankruptcy that the bankrupt had no reasonable expectation of being able to repay' there may be restriction order. In the last couple of weeks I have taken out a loan which I know I can't afford and so does the lender, LloydsTSB. My bank manager (Lloyds TSB) is fully aware of my situation and has full details of all my debts (my existing loan and credit card with them being on reduced payments), and although my £2000 overdraft was not up for review until January 2005 he called in the overdraft. I had been operating within the overdraft limit, but he said that the bank couldn't see a way of me reducing the overdraft with my current income and expenditure so they were withdrawing the facility. He gave me the 'choice' of withdrawing the overdraft, closing the account and sending it to collections or taking out yet another loan with them at 11%. If the account was closed I couldn't trade and I would have no income, so what could I do, but agree to the loan? How will this be viewed?

[JaneClack]

- Sun Nov 28, 2004 6:35 pm #2262 With understanding I would think. No-one can ever second guess the Official Receiver but if the bank were aware of your circumstances this should not prove a problem - they more or less convinced you to do this. Also the other loans have no bearing - many people borrow from different lenders. A bankruptcy restriction order is very rarely imposed and I think they will view your situation in a considerate manner. The OR is not an ogre.