You may have the bankruptcy order against you annulled in three circumstances. Firstly, the court may annul your bankruptcy order if the court is satisfied that the bankruptcy order made against you ought not to have been made. Secondly, if you are able to make payment in full (ie. pay all creditors any outstanding monies owed). Finally, if you have made an IVA with your creditors to pay all or part of your debts.
This article focuses on bringing an application where the bankruptcy order ought not to have been made. An application of this nature would be made under section 282(1)(a) of the Insolvency Act 1986 (“the Act”).
Examples where the bankruptcy order made against you ought not to have been made include (but not limited to):
- Where you and/or your representative could not attend the bankruptcy hearing
- A creditor had incorrectly obtained judgement in default
- A genuinely disputed debt but a petition was brought against you
- Where there was an abuse of process
The court will consider the following questions when reviewing your annulment application:
- What grounds existed at the time the bankruptcy order was made?
- On those grounds, should the bankruptcy order have been made?
- Will the court exercise its’ discretion to give the order sought?
The application under the Act must be supported by a witness statement from yourself which accounts for the questions raised above.
Please note until the bankruptcy order against you is annulled, any action that a trustee in bankruptcy may take is valid. Therefore, it is vital you act promptly, in order to avoid the sale of assets.
The best method to avoid bankruptcy is to respond to the proceedings. Seek legal advice at this point. It’s always more difficult to overturn a court decision than to argue against it ever being made.
We recommend seeking legal advice when considering bringing an application to annul your bankruptcy under section 282(1)(a) of the Act.
Should you wish to discuss an application of this nature, please do not hesitate to contact our offices on 0113 266 0735.
Get in touch to speak to one of our legal experts.