In 2002 I lost my full time job due to illness. Prior to that I had a loan and credit card, owing about £5000. Since then ive had a baby and now im at home looking after the children and my hubby has been looking for work now for 18 months and claiming JSA. I have done a little cash in hand work to bring in extra money. However, I kept using my credit card and my overdraft, needed to get the car fixed, refinanced loans to pay for things and the debt has just spiralled. I now owe around £35k. I feel really ashamed that this has happened, but it has and I need to get it sorted as it had got to the stage that I was paying repayments with all of our jsa and having to use the credit card to buy food and things, making the debts even worse. I have had some advice from the national debtline and am in the process of offering token payments. I think my best option is to go bankrupt when I have cleared the rent arrears. The thing is, I have borrowed about £30k while not officially working. When applying for loans and cards I added ALL our income from benefits, housing and council tax benefit, tax credits and the money I was earning cash in hand up together and said that was our household income. I said I was working part time. Nobody asked for any employment or income proof. I think Id better explain that the reason I applied for loans and cards was that I was trying to reduce payments by paying off cards with loans, if you know what I mean, but then kept spending on the paid off cards when all the repayments had used up all our money. Anyway, im now really worried about all of this. I know im going to have to explain all of this to someone at some point of dealing with this debt, but up until now I have managed to somehow fleece around the edges to everyone, but it will have to come out at some point that I lied and got lots of debt while unemployed, and that I was working cash in hand too. I know Im going to get taken to court by my creditors, or need to go to court for a bankrupcy in the near future. Will I need to explain about lying, will I need to explain how all this happened? And what sort of reaction should I expect? Will I be charged with fraud?
Sorry if ive bored you all, but I really need some advice, maybe then I might get a decent nights sleep.