Drug debts
Question
I've clocked up big debts due to cocaine addiction, but now I'm trying to sort my life out. I've kicked the coke habit, but my financial advisor has warned me I need to prepare for the prospect of bankruptcy. He also says that, should I apply, I must be completely honest about where the money has gone. If I come clean, could I face prosecution?
Answer
Bankruptcy may be your best option if your debts are overwhelming. And your advisor is right in saying that you should be transparent about the reasons why you're making such an application.
As far as the financial community is concerned, they won't focus on the fact that your debts arose from drug addiction. Frankly, they just want their money back. Of course, there's nothing to stop anyone from reporting you to the police for such an admission. Then again, the fact that you are clean and taking responsibility for your affairs makes it highly unlikely that you would be investigated.
Before committing to filing for bankruptcy you may want to take further advice from organizations such as your local Citizens Advice Bureau, National Debtline (you can call them on 0808 808 4000) or the Insolvency Service.
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Question answered by CAB
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