What is an annulment of bankruptcy?

An annulment is when an individual is already subject to a bankruptcy order. The bankruptcy order can be annulled i.e. the individual is returned to a legal position as if the bankruptcy had never occurred (clear credit record).

An annulment can be gained through three routes:

1. Application to the court on the basis of payment in full of all known debts plus costs and expenses of the bankruptcy. It is worth noting the court can also order payment of statutory interest in addition to this.
2. Application on the grounds the order ought not have been made; – the bankrupt must prove either they were not served the bankruptcy petition either correctly or at all; or – whole or part of the debt is invalid subsequently leading to the debt being less than £5,000 (the amount required for bankruptcy)
3. Bankrupt individual has proposed an Individual Voluntary Arrangement (“IVA”) and it has been approved by creditors, the court are obliged to annul the bankruptcy.

It is worth noting that with the exception of route 3, the court still has discretion to reject the annulment.

Our team are highly experienced in supporting individuals throughout the annulment process. Call us today on 0113 868 1203 for more information or to book a free consultation.