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Annulment of Bankruptcy – key concepts to consider

Annulment of Bankruptcy – key concepts to consider

Annulment of Bankruptcy

Annulment of your bankruptcy is possible by making an application to the Court.

Who can apply for annulment and when?

You can apply for an annulment of your bankruptcy if:

  • You have paid your debts, fees and expenses (or you have arranged to secure them);
  • The bankruptcy order should never have been made to start with (such as where you were wrongly identified as the person that owed money); or
  • You have entered into an agreement with your creditors, such as a formal agreement called an Individual Voluntary Arrangement (IVA).

How to apply to for a bankruptcy annulment?

The process you follow depends on how you were made bankrupt.  The application is made to the Court in specialist insolvency proceedings before the County Court.  Evidence needs to be filed with the Court to explain why the annulment is sought.  This usually takes the form of a witness statement.  Additional steps need to be taken, such as informing the Official Receiver or your Trustee in Bankruptcy (if appointed).

The sooner the application is made the better as your costs should be lower.

Because of the complexities involved in each of the three methods, it is sensible to seek legal advice from a solicitor specialising in annulments and related insolvency work.

Effect of bankruptcy annulment

When the bankruptcy annulment is granted by the Court the effect is same as though the bankruptcy never happened.  The blip on your financial affairs is reversed by the annulment order and your credit record will no longer show that you were bankrupt.  This cancels your bankruptcy and it will be as though it never happened.  You will not get back any property which has already been sold by the Official Receiver or your Trustee in Bankruptcy.  Any property which has not been sold will be given back to you.

An annulment is a common remedy and significant numbers of applications are made annually before the courts.

If you think an annulment is something you might benefit from, do not hesitate to contact us and our team will assist.