Advice on getting an Annulment

eonze1989

Bankruptcy Annulment

In 2005-2006 I was studying at college, whilst at college I was working 4 hours per week totaling £20 per week. (Cutting Grass)

I told a tutor about my work and they advised me that I had to register as self-employed.
I followed this bad advice, as I was earning far below the threshold.

I got letter from HMRC which I admittedly ignored as I assumed they would later correct themselves when they knew I was a student.

HMRC then later estimated that I owed approx. £17000 in Tax for 2 years earning of £20pw.
Again I ignored correspondence sending them only 1 email explaining my circumstances and situation.

In 2010 HMRC successfully made me Bankrupt which I didn’t know about as they sent all their paperwork to a previous address, although they successfully traced me down so I could attend a meeting with the Official Receiver who felt compassion and sympathy for me after I explained my situation and she even said I should never have been made Bankrupt.

Although I am now Discharged, I was wondering if there was a case that I could still get the initial Bankruptcy Order Annulled or Cancelled and my record corrected.

I’m not interested in any compensation or anything else, just that my Credit Report be updated and the Bankruptcy Order that was wrongfully awarded be cancelled and removed.

Thank You in advance for any advice.

TheGardener

HI OP - not one I have any experience of I'm afraid but thought I could bump you up the board a bit- it sounds like you might need to speak to a specialist on this one. Perhaps the IS office could point you in the right direction?

antonic

You could try, but I dont think you would have much of a chance.

Technically the bankruptcy is correct because
1) You can be made bankrupt at the last known address they have for you, even if its NOT your current address ,
2) As you have discovered, you can be made bankrupt for an estimated debt, even if if the amount is wrong - they can do this because you have ignored their letters to you.
3) HMRC only make people bankrupt as a matter of last resort and most probably because of your behaviour in point 2.

Please let us now how you get on.

rizla_king

If the bankruptcy should never have happened then think a 'set aside' is appropriate rather than an annulment Ask on consumeractiongroup and legalbeagles. Sure I read on one of those of someone who went that route.

eonze1989

Thanks for the reply guys, I'm waiting on a response on a legal forum, otherwise after new year will seek advice from a professional.

Thanks

JCS1

I seem to recall that setting aside needs to be done at the time at the order is made

There is a publication here about annulment, but I suspect that you might struggle:

http://www.bis.gov.uk/insolvency/Publications

roger196

You need to pursue "equitable liability". Search for this term on www.hmrc.gov.uk.

As it is many years since I was involved with this, I am unable to give you any idea of current practice / whether you are likely to be succesful.

arcon5

eonze1989 wrote: »

Bankruptcy Annulment

In 2005-2006 I was studying at college, whilst at college I was working 4 hours per week totaling £20 per week. (Cutting Grass)

I told a tutor about my work and they advised me that I had to register as self-employed.
I followed this bad advice, as I was earning far below the threshold.

I got letter from HMRC which I admittedly ignored as I assumed they would later correct themselves when they knew I was a student.

HMRC then later estimated that I owed approx. £17000 in Tax for 2 years earning of £20pw.
Again I ignored correspondence sending them only 1 email explaining my circumstances and situation.

In 2010 HMRC successfully made me Bankrupt which I didn’t know about as they sent all their paperwork to a previous address, although they successfully traced me down so I could attend a meeting with the Official Receiver who felt compassion and sympathy for me after I explained my situation and she even said I should never have been made Bankrupt.

Although I am now Discharged, I was wondering if there was a case that I could still get the initial Bankruptcy Order Annulled or Cancelled and my record corrected.

I’m not interested in any compensation or anything else, just that my Credit Report be updated and the Bankruptcy Order that was wrongfully awarded be cancelled and removed.

Thank You in advance for any advice.

Just because you are below the income tax threshold doesn't mean you shouldn't have registered as self employed, thus declaring your earnings to the HMRC.

Nor was the advice to register bad advice....

what was bad was that you took this correct advice and subsequently failed to act on HMRCs requests to complete a self assessment leaving them with no other option other than to estimate your earnings.

TheGardener

Gosh - a salutary lesson if ever one were needed to never ignore HMRC, no matter how small or confused an issue might seem.
That's a really tough call for a student doing a pin money job, the consequences seem far harsher than they should be for the position you describe - but as acorn5 says, it was something you could have avoided if you had realised the seriousness of it all.
I hope you can find someone to help with this. If all else fails, make sure you follow the 'clean up you credit file' sticky and try and put an explanatory note on your credit file and make sure you operate your accounts spotlessly for the next few years.

eonze1989

Thanks for the reply's, I would never say I was NOT in the wrong, as I know I clearly was.

I have checked my credit file which reads Good so it's not end of world terms, but It would just feel better to have it corrected and the bankruptcy not shown.

The credit report states it as 'Satisfied' and the amount owed as £0.

The main reason I would like to 'try' and get it removed if at all possible, is I applied for a Joint Mortgage in Principle with my Partner of 8 years, and our salaries aren't massive but fair.

Jointly we earn £34k year.

But the mortgage isn't the issue, that's for another day.

Thanks for all your sound advice, and a lesson for people to learn from in the future

eonze1989

arcon5 wrote: »

Just because you are below the income tax threshold doesn't mean you shouldn't have registered as self employed, thus declaring your earnings to the HMRC.

Nor was the advice to register bad advice....

what was bad was that you took this correct advice and subsequently failed to act on HMRCs requests to complete a self assessment leaving them with no other option other than to estimate your earnings.

I agree completely with what you have said.

The reason I said bad advice is, I was later told as a student you don't even pay tax on earning anyway.