Annulment
sammy32683
Forumite 82 Posts
Hello,
I am looking to find out if anyone has gone through the annulment process and if this is worth doing and how much OR fees are.
I went bankrupt and am 2 months from discharge. My gran died and left a lot of money to my mum who wants to gift me a large portion once discharged. This would be more than the 40k debt I went bankrupt with. Is it worth using this to pay off the BR and remove it or should I keep the money and just save?
Any guidance would be really appreciated.
Thanks
Sam
I am looking to find out if anyone has gone through the annulment process and if this is worth doing and how much OR fees are.
I went bankrupt and am 2 months from discharge. My gran died and left a lot of money to my mum who wants to gift me a large portion once discharged. This would be more than the 40k debt I went bankrupt with. Is it worth using this to pay off the BR and remove it or should I keep the money and just save?
Any guidance would be really appreciated.
Thanks
Sam
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Finish your bankruptcy and then your mum can do what she likes with her money, when she likes.
But obviously she should not give you a windfall while you are an undischarged bankrupt.
Glad I read the text and not just the header as annulment is fiendishly tricky and above my pay grade (humble Cit A debt adviser)
She will wait until I'm discharged but wanted to know if anyone had gone through annulment but I'm guessing not.
I'll contact the OR and ask about it then.
Cheers
More than a third of IVA`s fail....fact.
Could A Debt Relief Order help you ?
Never pay a fee for a Debt Management Plan.
For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
Firstly, write to your creditors, advise that you are now in a position to pay your debt to them, and ask them to waive their right to claim statutory interest. They have the right to this, and it can add up. Seeing as you’re only 10 months in statutory interest shouldn’t be too much but obviously a good idea to limit what you have to pay out.
Then pay your creditors and have them confirming IN WRITING that the debt has been settled. When you have all that then pay off the OR’s fees, which total £7,995. Ask your OR to move your case to the local court if not already (I’m assuming this was a bankruptcy through the adjudicator, if not the case will be at your local county court in any case). Apply to the Court for an annulment hearing. You just need to fill in a basic form and state that the annulment is requested based on Section 282 (a) of the Insolvency Act and MAKE SURE you serve the hearing date to the OR.
The OR will then write to the Court and confirm that you have provided evidence that the debts and fees have been paid. You then rock up to the hearing and the judge makes the order, and your bankruptcy is no more. It will stay on the register for 3 months, but will say the bankruptcy is annulled.
At some point it will then drop off your credit file but i don’t know how long this takes.
Diary of paying down debt whilst living abroad:https://forums.moneysavingexpert.com/discussion/6181237/5-000-miles-and-even-more-pounds#latest
Minky says the process costs £8k - I can't confirm that but it sounds about right.
I wasn’t advising either way, just giving the “how”. Whether or not the OP seeks an annulment will, I guess, depend on their circumstances and what they wish to do in the short term. 6 years is quite a while if you have plans to get a mortgage, for example.
and have annulled if you can afford to and definitely worth asking creditors to waive the post bankruptcy interest.