Bankruptcy annuled yet bank account refused

[jason.r]

I was made bankrupt due to a technical difficulty with a creditor(sounds stupid, but true) I only had one creditor. As I owed no other monies and have never owed anyone or any other business money the O R said that my bankruptcy should be annuled. My creditor was fully paid along with the appointed trustee and my Bankruptcy was annuled by the court.
Now some time after the annulment my credit report shows no record of the previous action and shows a clean bill of health.
When my partner went to take a small loan on a car the bank wanted extra interest due to an "issue" at our address. My partner has a peachy clean track record for credit. I then tried to open a new bank account and was refused due to Experian check.
How can this be when in the eyes of the law I have never been bankrupt and I have no other bad debt record.

[MelanieGiles]

You would need to aks the credit scoring agencies why there are entries which are stopping you having credit. An annulled bankrutpcy certainly should not be affecting you or your partner now, so perhaps it is something difference that has been identified on your partner's record?

[jason.r]

My partner has had an Experian Credit check done on herself and that came up as squeaky clean as expected.
One bank turned her down for the small loan when it came to the "Experian" check so I then tried to open a new bank account as I've had no account since my problem started. That was refused point blank when it came to Experian check so we assume the problem is with me as the same bank gave my partner her loan but at an increased interst lavel due to "issues" with the credit check.

[MelanieGiles]

But that cannot be the case if your credit record is now clear. I suggest you take this up with the bank concerned to find out exactly what they have picked up so that you can deal with the removal of the entry.

[ianmillington]

There are 2 grounds on which a bankruptcy can be annulled - one on the grounds of full payments and the other on the grounds that the order should never have been made. There are subtle differences between the 2. I wonder whether Experian are treating your situation that because the order was made it stays on their credit file for 6 years, even though you paid the debt in full. If the order was annulled because it should not have been made then I think they would have to remove it - if by payment in full then I imagine they don't have to.

Ian

[kallis3]

If they are anything like Nationwide Melanie, they won't tell you.

When I first applied for the Nationwide account, my credit record was great but they refused to give me a full flex account. I was told that it was my Experian record that was the problem, but I used to check online and it was ok. Nationwide told me that obviously they could see something that I couldn't. They refused to say what the problem was.

I phoned Experian who confirmed that my record was exemplary and that they could see exactly what I could.

I then went to Barclays, and in the space of an hour had opened a full cheque account, told that we were at the top of their lending criteria and both of us got credit cards (mine was platinum!)

And the rest, as they say, is history.............

Have you tried any other banks Jason?

[MelanieGiles]

Good point Ian - and probably the reason why this is still showing up.

[jason.r]

My partner had attempted to get a loan with one bank and was turned down due to "issues" she then went to second bank (where I trided to open bank account) who offered low interest rate but then upped the interest rate after the Experian check!
I understood this to be the format re annulment-
"What is the effect of the bankruptcy annulment?
An annulment has the effect in law that the bankruptcy order was never made. You will revert to your pre-bankruptcy status. Disposals of your property by the official receiver and the trustee will remain valid and will not be reversed. Any other assets will be returned and you will be liable for any of your debts that have not been paid in the bankruptcy"
I never had any property sold or any assets taken, I was in dispute with creditor, who actually owed me money as I'd argued prior to the banruptcy order.
My creditor dropped the claim and I just paid a tax bill acrued during the period before the annulment and the trustees bill.

So with clean credit report I'm still baffled. I retire soon and want to be able to be in a position to have credit cards etc that I had before.

[MelanieGiles]

It is a matter between you and the credit referencing agencies I am afraid. The fact is that a bankruptcy order was made on the basis of disputed monies. If the account was incorrect, why did you not attend the Court hearing and put your point across which could have stopped the bankruptcy order being made?

[jason.r]

I rather dissapointed by your comment after the trauma I've been through. My creditor who as it turned out owed me money had the hearing adjournd so they could resolve the matter, when THEY asked for a further adjourment as they were still sorting out the matter the judge said that the court could not waste time so I was made bankrupt.I was told not to go to the hearing as it was my so called creditor who was asking for a further adjournement!!!
That is why the OR said that it should be annuled and I lost no assets etc.

[MelanieGiles]

My comment was not meant to disappoint you, but to try and highlight the reason why you are in the current dilemma.

My posts always stick to the facts of the matter and do not pass judgement, and my question was a sensible one given your circumstances and your answer is useful.

Given that your annulment application ought to have been based upon the fact that the order ought not to have been made (Ian Millington's grounds 1 above) rather than on the grounds of the debts were paid in full (grounds 2 above) then in my opinion you have good grounds to appeal the entry on the credit referencing agencies.

You will need to check the exact wording of your annulment application to see which grounds were used, and those papers can then be submitted to the CRAs.

[ianmillington]

To expand on Melanie's point, draw an analogy with a CCJ. If a CCJ is made against you, and you settle it, that does not affect the fact it was made, and even if you satisfy the debt the day after, your credit rating is still stained as the CCJ will remain upon it.With the bankruptcy, I am afraid that it is not true that simply because it was annulled, in law it never happened. For example, in considering whether a Bankruptcy Restriction Order is to be made, a Court will take into account whether a person was previously an undischarged bankrupt "at some time" in the 6 years prior to the second bankruptcy. Annulment on the grounds of full payment will not get round that, but on the grounds that it should never have been made will.

Hindsight is a great thing - I assume you did not have legal advice at the time. Given the circumstances you have described, the order probably should never have been made. If the Court felt that the petitioner was not properly prosecuting the petition it should have dismissed it, not made the order. Even then, arguably, the bankruptcy (or at least its advertisement) could have been stayed to enable you to put your annulment application together. That would have prevented the appointment of the trustee with the additional cost that would have entailed. Most tellingly, however, is that following the annulment (on full payment grounds) your credit record may have borne the hallmarks of a person who pays their debts but only when forced to do so.

As Melanie has indicated you need to find out 2 things:
1. The grounds on which the annulment was made and
2. What is on your Experian file

Only then will it become clear how you ought to proceed.

Ian

[jason.r]

You have assumed wrong, I had a legal representative at the high court. But my understanding is that the judge would JUST NOT ALLOW ANOTHER ADJOURMENT. It was not me asking for the adjournemnt it was the party who had claimed that I owed them money asking for more time.
At the end of the day, they owed me money so they had no claim. I only had to settle an income tax bill as the payment was held up due to the Bankruptcy order being made and the annulment. And pay the trustee as it took so long for the other party to confirm my claim that they had in fact owed me several thousands of pounds.
I'm still at a loss as to how my credit file comes up as clear but I still can't open a bank account nd my partners credt score seems to be effected by me?

[ianmillington]

I note my wrong assumption and hope no offence was taken but then in that case the Court's decision would seem to make absolutely no sense at all. It is perverse that an alleged creditor can fail to properly prosecute the petition but win anyway.

As requested are there any documents in relation to the annulment?

Thanks
Ian

[jason.r]

What seemed to be a case on no real worry turned in to a living nightmare, as the people bringing the bankruptcy case had lost paperwork but agrred that they had recieved it and then lost copy paperwork it turned rather sour and the whole bankruptcy matter turned to soap opera mella drama. I understood that all the problems had gone away and the matter resolved. I have somebody looking in to the matter and the paperwork, but due to the way I've been treated and the way the matter was handled by the authorities I am now trying to arm myself with as much information as possible. All though I admit I made a mistake in the past the fact was that I was right and did not owe monies claimed in the bankruptcy.
Not oweing monies and settling a humble income tax bill as that was the only thing I owed I fail to see why I as a relatively wealthy person I am still having trouble re credit.
I have thirty + years of good credit record. early payment of a car loans, mortgages paid off ten years early and never in debt with banks, credit cards or anyone else until my dispute that brought about the court action, that was proven to be wrong as the plaintive(if that's the word) did owe me money, not me owe them.