Broadly speaking – YES

An application must be made under section 282 of the Insolvency Act 1986 (“the Act”) and rule 10.132 of the Insolvency Rules (England and Wales) 2016 (“the Insolvency Rules”).

Under the Act, the court can make an order to annul your bankruptcy (i.e., to “cancel” the bankruptcy order) if one of the below three grounds has been satisfied:

Ground 1: On any grounds existing when the bankruptcy order was made, the order ought not to have been made (section 282(1)(a) of the Act).

Ground 2: to the extent required by the Insolvency Rules, the bankruptcy debts and the expenses of the bankruptcy have all, since the making of the order, been either paid or secured for, to the satisfaction of the court (section 282(1)(b) of the Act).

Ground 3: undischarged bankrupt enters into an Individual Voluntary Arrangement (“IVA”) with its’ creditors (section 261 of the Act).

An application for bankruptcy annulment is rare. You must ensure you that you have complied with the practical requirements of the Insolvency Rules.

It is crucial throughout the application, to liaise with the Official Receiver and/or Trustee in Bankruptcy (“the Trustee”) (if appointed). This will ensure that your application stands the best prospects of success and ideally is supported or unopposed.

Dependent upon which ground the application is to be made is likely to affect whether it is opposed or not. Different criteria apply. Applications should always be made promptly, where possible. The actions of the Official Receiver and/or Trustee in Bankruptcy are justified whilst the bankruptcy order remains in office.

If your bankruptcy is annulled by the court, any property which vested in the Trustee will revert to you immediately. Any surplus cash held by the Trustee will be returned to you as soon as practically possible by the Trustee.

Should you require any further information regarding bankruptcy, please do not hesitate to contact our offices on 0113 266 0735.

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