Annulment of Bankruptcy

 

A procedure that may cancel the original bankruptcy order and can only be decided on and ordered by the court.

An application may be made at any point within the bankruptcy term providing:-

  • An Individual Voluntary Arrangement (IVA) is in place with creditors repaying part or whole of the original debts.
  • The Bankruptcy procedure was fully and correctly executed.
  • The court and relevant system is satisfied that all proceedings expenses, fees and outstanding debts are cleared or a guarantee is in place with the court.

Applying for Bankruptcy Annulment

Obtain the relevant form under section 282(1) (a) Insolvency Act 1986 from the court that has been dealing with your Bankruptcy case.

If the bankruptcy order should not have been made, application under section 282(1) (a) of the Insolvency Act 1986.

Produce an affidavit and swear it, on oath, in the presence of a solicitor or a witness statement, with a verifying statement of truth, explaining why the bankruptcy order should not have been made in the first place.

Arrange to get the completed forms, affidavit or witness statement with verifying statement of truth, to the court which will then set a hearing date your application to be heard, which the applicant should attend.  The Official Receiver must be notified of who petitioned the bankruptcy and the trustee, if an IP was acting as trustee, prior to the hearing. Inform the Official Receiver of the hearing venue, date and time along with application form copies and the affidavit or witness statement with verification by statement of truth, as soon as is possible.
Following the hearing the court decides who is to pay the Bankruptcy expenses and fees whist considering the application.

If bankruptcy expenses, fees and debts have been paid or a security given, application under section 282(1) (b) of the Insolvency Act 1986.

Request the relevant application form from the court dealing with your bankruptcy;
Produce an affidavit or a witness statement, verified by a statement of truth, showing all assets and debts at the date of the bankruptcy order and details of any payments made or secured and arrange for it to get to the court. The court will respond with a date for your hearing and you should attend.

Notification to the Official Receiver and the trustee referencing the venue, time and place of the hearing should be given in writing at least 28 days before the hearing along with copies of the application, affidavit or a witness statement, verified by a statement of truth, to both the Official Receiver and also the trustee.

The Official Receiver or trustee then dispatches a report to court as confirmation that your debts are paid or an adequate security given to creditors. This report  also remarks on your conduct in the bankruptcy proceedings.

If creditors agree to an individual voluntary arrangement (IVA) application under section 261 of the Insolvency Act 1986 the IP nominated to deal with the case will call a meeting of all creditors;

Creditors may agree to an offer presented to pay them in which case application to the court for Bankruptcy Annulment can be made, 28 days after the chairman at the creditors has reported meeting results to the court.

The supervisor of the voluntary arrangement can make the application to Annul Bankruptcy or the individual concerned and it should be made using the same procedure that applications were made, where that bankruptcy should not have been made but the affidavit or the witness statement, verified by a statement of truth with that application should show that Voluntary

Keep the appointment to see the Official Receiver

Appointments with the Official Receiver should be kept and any details requested provided - as in some cases a court may not annul a bankruptcy order until the Official Receiver confirms that you have complied.