Bankruptcy Annulment
Have you been made bankrupt and are worried about losing your home, car or other assets?
If so, Bridgestones may be able to assist you.
Many people think that once the bankruptcy process has begun, it is impossible to have it cancelled. However a bankruptcy can be annulled.
Annulment is a procedure that cancels the Bankruptcy Order that has been made against you. Your local County Court can make an Order to annul once an application has been made.
If your bankruptcy is annulled, it restores you to your pre-bankruptcy status and would ensure that your details in relation to the bankruptcy were deleted from the Insolvency Register.
Whether you have been made bankrupt following a petition presented by one of your creditors or by a petition presented by you, it may be possible to reverse the Bankruptcy Order if one of the following three scenarios applies to your circumstances;
- The bankruptcy order should not have been made in the first place; or
- All of your Bankruptcy debts, as well as the fees and expenses of the Bankruptcy proceedings, have been either paid in full or guaranteed to the satisfaction of the court; or
- Your creditors have accepted a proposal for a repayment plan known as an Individual Voluntary Arrangement. Once creditors accept the Individual Voluntary Arrangement, you are able to make the application to Court for the annulment.
If you have a sufficient level of disposable income to offer a regular monthly payment to creditors, have sufficient equity in your property which you are able to release or know a third party who is willing to offer funds to your creditors, Bridgestones may be in a position to assist in offering a Proposal for an Individual Voluntary Arrangement to your creditors which if accepted would leave you in a position to make an application for the annulment of the Bankruptcy Order.
If you own a property, you should be aware that any disposal of your property by the Official receiver or Trustee that has taken place remains valid even if your annulment application is granted. Therefore it is critical to seek advice as soon as possible.
The Process
Once Bridgestones have assisted in the preparation of the Proposal for your Individual Voluntary Arrangement, a meeting of creditors will be called.
Once the Proposal for the Individual Voluntary Arrangement is accepted by creditors at a meeting of creditors, you can then make the application to Court for the annulment of your bankruptcy.
The Application and a Statement of Truth (stating that you are making the application for annulment on the grounds that your creditors have approved an Individual Voluntary Arrangement) would then be filed in Court. The application can be made 28 days after the Chairman of the meeting of creditors has reported the results of his meeting to Court.
The Application should be taken to Court and the Court will then set a date to hear the Application.
Before this hearing takes place the Official Receiver and the Supervisor of the Individual Voluntary Arrangement need to be notified of the time, date and place of the hearing not less than 5 business days before the hearing is due to take place.
Once the annulment has been granted, the Official Receiver is required to inform those creditors whom they have already notified of the Bankruptcy Order, that the Order has been annulled.
Once the Official Receiver has been notified that the annulment has been granted, they will delete all information regarding the bankruptcy from the Individual Insolvency Register once a period of three months has lapsed.
If you have recently been made bankrupt, but believe that there are grounds for an annulment, please contact us for advice.
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