Bankruptcy - Annulling after 18 years. Does anyone have experience?

Spanke_y

I went bankrupt over 18 years ago due to pressure from MBNA. If it had happened more recently the FCA would have prevented them from behaving like a loan shark. Anyway, after 18 years I've decided that I want to clear it off of my record. However, the OR has informed me that I may face 8% on the debts so this has thrown a spanner in the works as the potential payback is would be double!

The OR did say that it's possible that the creditors may wave their claim as so much time has gone by. They also suggested that I contact the credit card companies to negotiate myself and then provide proof that they're satisfied

On the debtor list, only two companies filed a claim against me. MBNA (Owned by Bank of America then Virgin money and now Lloyds) and another very small finance company, the finance company is no longer in business and that was £150. The other debts were also credit cards - the original bankruptcy debt was £10k. 

My question: Does anyone have experience of this? I spoke with Lloyds and another credit card company and they had no records available for me so I'm not sure how to proceed. However, I know that Lloyds keep records going back 100 years. 

Cheers,
Ben

Sonic101

Hi there

My question is, why do you want to bother to "clear" bankruptcy off your record after 18 years? It will have long since dropped of your credit file (dropped off six years after the date you declared bankruptcy), potential lenders won't care about it, and surely if it were for career reasons - for example if having ever been declared bankrupt is a problem - then it's too late anyway because you did the deed.

sourcrates

Spanke_y said:

I went bankrupt over 18 years ago due to pressure from MBNA. If it had happened more recently the FCA would have prevented them from behaving like a loan shark. Anyway, after 18 years I've decided that I want to clear it off of my record. 

What record ?

The Gazette will be about the only place this still exists, creditors keep records for 6 years min, some a few years longer, such as the Halifax for example, they keep records for 8 years.

No one else will have any record of it anywhere, not creditors, insolvency register, credit file, no one, why do you want to re-open a can of worms after such a long time ?

JCS1

You would also have OR fees to pay, as well as Secretary of State fees.

luvchocolate

These can be significant...mine were £24,000

Minkym00

luvchocolate said:

These can be significant...mine were £24,000

They won’t be. The OR’s fees were something around the £1800 mark then. Also the Secretary of State fees are only payable on realised assets. If the OP negotiates and pays creditors direct then these SOS fee won’t apply. 

In all likelihood though the creditors won’t have records of your debt to them. If so then if you get them to confirm in writing that you have no debt to them then you could actually get away with not paying some, most, maybe all of the debts. Then show that to the judge and it should be accepted, I’ve certainly seen it happen.

Also curious as to why you want to annul now - did your discharge get suspended?

Spanke_y

Minkym00 said:

luvchocolate said:

These can be significant...mine were £24,000

They won’t be. The OR’s fees were something around the £1800 mark then. Also the Secretary of State fees are only payable on realised assets. If the OP negotiates and pays creditors direct then these SOS fee won’t apply. 

In all likelihood though the creditors won’t have records of your debt to them. If so then if you get them to confirm in writing that you have no debt to them then you could actually get away with not paying some, most, maybe all of the debts. Then show that to the judge and it should be accepted, I’ve certainly seen it happen.

Also curious as to why you want to annul now - did your discharge get suspended?

I'm training to work in financial services and this 'could' be a barrier to getting employed. If I can get it removed from the OR then I can explain in my interviews that it was sorted/settled and there is no record of it anymore. I don't mind paying the fees but I don't want to pay MBNA 8% annual interest as they were the ones that forced me into bankruptcy. 

Spanke_y

Minkym00 said:

luvchocolate said:

These can be significant...mine were £24,000

They won’t be. The OR’s fees were something around the £1800 mark then. Also the Secretary of State fees are only payable on realised assets. If the OP negotiates and pays creditors direct then these SOS fee won’t apply. 

In all likelihood though the creditors won’t have records of your debt to them. If so then if you get them to confirm in writing that you have no debt to them then you could actually get away with not paying some, most, maybe all of the debts. Then show that to the judge and it should be accepted, I’ve certainly seen it happen.

Also curious as to why you want to annul now - did your discharge get suspended?

The fees are currently £200 and they will increase if they reopen the file and contact the creditors. I was discharged after two years.

Minkym00

Spanke_y said:

Minkym00 said:

luvchocolate said:

These can be significant...mine were £24,000

They won’t be. The OR’s fees were something around the £1800 mark then. Also the Secretary of State fees are only payable on realised assets. If the OP negotiates and pays creditors direct then these SOS fee won’t apply. 

In all likelihood though the creditors won’t have records of your debt to them. If so then if you get them to confirm in writing that you have no debt to them then you could actually get away with not paying some, most, maybe all of the debts. Then show that to the judge and it should be accepted, I’ve certainly seen it happen.

Also curious as to why you want to annul now - did your discharge get suspended?

I'm training to work in financial services and this 'could' be a barrier to getting employed. If I can get it removed from the OR then I can explain in my interviews that it was sorted/settled and there is no record of it anymore. I don't mind paying the fees but I don't want to pay MBNA 8% annual interest as they were the ones that forced me into bankruptcy. 

Creditors are entitled to charge 8%, but that doesn't mean they will. Try cutting a deal, after all they'll get nothing otherwise.

NewLeaf1986

Having been bankrupt 18 years ago shouldn't in and of itself be a bar to entry to financial services. Financial probity checks require the interested party (employer etc) to give the employee opportunity to explain any disclosed historical events and the interested party are under an obligation to treat every application on merit.

I underwent a financial probity check when contracting for a large public sector client during my bankruptcy, I was given an opportunity to explain the circumstances surrounding the fincial event and permitted to continue working on the contract as they were satisfied with my explanation. 

I know there are some outlying cases though so appreciate your wanting to ensure there's no potential barriers further down the line. Sorry I can't offer advice on this specific matter. 

Spanke_y

It's not a complete bar to working in the financial industry but you're right on each application being treated on merit. I checked with the FCA last week and it's up to the employer, unless it's a certified role then the FCA has to approve the position. It also depends on the role that I go for - although it won't be a senior position.
I've started the process of moving forward with removing the bankruptcy. However, with the FCA requirements of being open and honest, even with the annulment I would be obligated to let the potential employer know my past. If I have made good on the bankruptcy then hopefully that shows in my favour. It would then be their decision whether to employ me or not...