Annulment

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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 

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  • fatbelly
    fatbelly Posts: 20,700 Forumite
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    Your Gran didn't leave the money to you!

    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)
  • sammy32683
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    No but my mum said she will gift a portion to me, it wasnt left to me no as if it were I wouldn't have a choice but to give it to OR.
    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 
  • sourcrates
    sourcrates Posts: 29,020 Ambassador
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    edited 5 December 2020 at 4:46PM
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    I'll contact the OR and ask about it then. 
    Cheers 
    For the sake of two months why rock the boat, just see out your time, then enjoy your windfall next year.
    If you apply for an annulment, not only do you have to pay your original debts back in full, but also the full costs the OR has incurred managing your bankrupcy, and the court fee`s for the annulment hearing, this could amount to a significant sum of money, I see no point to it now.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Minkym00
    Minkym00 Posts: 770 Forumite
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    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.

  • Smashingitnow
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    Do not speak to the OR. Do not annul the bankruptcy. Do not take any money. Good grief. Wait two months and use the money to build for your future. Easiest dilemma ever...why on earth would you annul the bankruptcy...
    March 2020 - 21k of debt; September 2020 - 14k of debt. Debt free target date September 2021 
    Diary of paying down debt whilst living abroad:https://forums.moneysavingexpert.com/discussion/6181237/5-000-miles-and-even-more-pounds#latest


  • fatbelly
    fatbelly Posts: 20,700 Forumite
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    Do not speak to the OR. Do not annul the bankruptcy. Do not take any money. Good grief. Wait two months and use the money to build for your future. Easiest dilemma ever...why on earth would you annul the bankruptcy...
    My thoughts in a nutshell. 

    Minky says the process costs £8k - I can't confirm that but it sounds about right.
  • Minkym00
    Minkym00 Posts: 770 Forumite
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    fatbelly said:
    Do not speak to the OR. Do not annul the bankruptcy. Do not take any money. Good grief. Wait two months and use the money to build for your future. Easiest dilemma ever...why on earth would you annul the bankruptcy...
    My thoughts in a nutshell. 

    Minky says the process costs £8k - I can't confirm that but it sounds about right.
    There is a general fee of £6000 and an admin fee of £1995. 

    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.
  • BillEatsCrisps
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    How many creditors do you have? It’s a good thing to pay off in full
    and have annulled if you can afford to and definitely worth asking creditors to waive the post bankruptcy interest. 
  • sammy32683
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    9 creditors totalling 39k, I am getting 100k (very lucky I know) I read fees are around 2k. So seeing as it will clear my BR and allow me to get a mortage at a better rate and lower deposit much quicker I was seriously considering it. 
  • Minkym00
    Minkym00 Posts: 770 Forumite
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    9 creditors totalling 39k, I am getting 100k (very lucky I know) I read fees are around 2k. So seeing as it will clear my BR and allow me to get a mortage at a better rate and lower deposit much quicker I was seriously considering it. 
    The fees are not £2k, they are £8k.
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