HOW DO I ANNUL A BANKRUPTCY?

HOW DO I ANNUL A BANKRUPTCY?

This article looks at the looks at the annulment of bankruptcy order and pursuant section 282of the Insolvency Act 1986 (‘IA 1986’) and the grounds on which you can seek and annulment order.  If we can help with this or any other insolvency related matter please contact Julian Wintle on 01905 900919 or julian@bradleyhayneslaw.co.uk.

ANNULMENT OF BANKRUPTCY ORDER

An Annulment of Bankruptcy Order can be made to cancel the original bankruptcy order that was made. Annulment of bankruptcy is as if the bankruptcy order was never made. The annulment of bankruptcy order is normally made under section 282 IA 1986.

WHAT ARE THE GROUNDS FOR ANNULMENT OF THE BANKRUPTCY ORDER?

There are three grounds on which a court can make an order to annul the original bankruptcy order. These are as follows:

• If it appears to the court that, on any grounds existing when the bankruptcy order was made, the order ought not have been made (s.282 (1)(a) IA 1986)
• The bankruptcy debts and expenses of the bankruptcy have all, since the making of the bankruptcy order, been either paid or secured to the satisfaction of the court (s.282 (1)(b) IA 1986)
• Where the undischarged bankrupt enters into Individual Voluntary Arrangement (‘IVA’) with the creditors (s.261 IA1986).

WHAT ARE THE EFFECTS OF ANNULING A BANKRUPTCY ORDER

The effect of the annulment order is to put you back in the position you were before any bankruptcy order was made. Unless the annulment order was made under s.261 IA 1986, the debtor will remain liable in full for all the bankruptcy debts and any property vested in the trustee will revert to the debtor (s.282 (4) IA 1986).

HOW TO APPLY FOR AN ANNULMENT ORDER

This must be done through an application at Court specifying on which ground you are making the application (grounds as referred to above). This must be accompanied by a witness statement detailing the evidence in support on the grounds you are making this application.

WHO CAN APPLY FOR THE ANNULMENT ORDER?

The Insolvency Act 1986 itself does not limit on who can apply for annulment of bankruptcy. Applications are usually made by the bankrupt, the trustee in bankruptcy, or anyone who may be affected by the bankruptcy order, this could arise in family law situations and the financial remedy they that they have not received as a result of the bankruptcy order being made.

If you are seeking annulment of a bankruptcy order the insolvency team at Bradley Haynes Law can help.  Please contact us on 01905 900919 or email to julian@bradleyhayneslaw.co.uk.