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What is an annulment of a bankruptcy? |
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An annulment has the effect in law that the bankruptcy order was never made. You will revert to your pre-bankruptcy status. |
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What will happen to my house ? |
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If we can help, your home will be saved from repossession. |
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Is my home at risk ? |
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Yes. The official receiver or the trustee may have to sell your home to help pay your bankruptcy debts. This applies whether the home is freehold or leasehold and whether it is solely or jointly owned. |
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What are the effects of bankruptcy? |
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All of your assets will be the property of the official receiver. Any bank accounts will also be frozen. |
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Do I have to go and see the official receiver? |
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Yes. Cooperation with the official receiver is paramount. The court may reject the annulment if the official receiver is not satisfied. |
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Can I stop the bankruptcy order being advertised? |
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Yes, but you must act immediately. You must telephone the court and the official receiver to apply for a “stay of advertisement” |
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What will happen to my records? |
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If we are successful in getting the annulment, we will apply to have the bankruptcy expunged from your credit records and the land registry. |
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How long does the process normally take? |
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On average a case completes including remortgage in under 2 months. Although we have fast tracked cases through in under 10 days. The court hearing cannot take place within 28 days of the bankruptcy. |
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If my wife can afford the house payments by herself, and it has little equity, if any, can it be transferred into her name? |
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Yes, only if the lender and the Official Receiver consent to this. We can help you with this if you wish. |
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I need my car for work. Will the Receiver allow me to keep it? |
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Usually yes; if there is finance outstanding then the vehicle may be repossessed. If we are acting in your annulment we can prevent this. |
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Am I better off letting it take its course and starting afresh? |
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No. The effects of bankruptcy are serious and can have detrimental effects such as:
· Having your home repossessed
· Having your situation advertised in the local press and the London Gazette for all to see.
· Being required to fill in numerous forms and have an extended meeting with the Official Receiver, and, if appointed, a Trustee in Bankruptcy who will thoroughly investigate your affairs.
· Havingany business you own immediately closed and any employees dismissed.
· Losing any assets of real value including your car, life insurance and possibly pensions.
· Losing any assets you may acquire during the term of your bankruptcy such as inheritances, lottery wins, insurance settlements, growth of asset value in your home.
· Having your building society, creditors, landlord etc immediately informed.
· Having all bank accounts, credit cards etc closed. Anything you might be leasing, or buying on hire purchase, such as your car will be immediately returned to the owner.
· Losing professional and business status, having some employment opportunities prejudiced, face rejection from many associations and societies.
· Having serious difficulty obtaining future credit.
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Will the Receiver sell my home if I cannot afford to repay the creditors? |
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Probably. If you own a property a trustee will most likely be appointed with a view to realising your assets and distributing the proceeds. Your house will be repossessed and sold at auction. 17% of the sale value will go to the Secretary of State, deduct the Trustee’s fees, estate agents fees, Official Receiver’s fees, and the creditors balances. Any remaining monies if any, will then be transferred to you. |
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If my wife can afford the house payments by herself, and it has little equity, if any, can it be transferred into her name? |
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Yes, only if the lender and the Official Receiver consent to this. We can help you with this if you wish. |
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Would my partner be able to buy out my share of the equity? |
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Yes, only if the lender and the Official Receiver consent to this. We can help with this if you wish. |
