Can I challenge a Bankruptcy Order?

Yes, it is possible to challenge a Bankruptcy Order. You can apply to the court for the rescission of the order. However this is only possible in circumstances where you believe that the order made is incorrect on a point of law, hence what you will be asking the court to agree is that the judge who made the order in the first place acted incorrectly, did not consider the matter appropriately, or made an incorrect decision. The evidential requirements on this will be very high, and it will be an application looked at very seriously by the court.

It is also possible for you to apply for an annulment of the bankruptcy order on two grounds:

1.      The order “ought not to have been made” – this usually centres around whether there is any dispute over the validity of the petition debt e.g. is the debt proven or does it total more than the prescribed minimum of £5,000, or has the appropriate legal process been undertaken by the petitioner i.e. was the petition served accurately by a process server or by post. You will need to check all of these elements in order to establish whether you have suitable grounds for “ought not to have been made”.

2.      Secondly, you could apply on the grounds of payment in full of all your debts, costs and expenses. What this means is it will not be sufficient purely to just pay the petition debt, you must pay ALL of the costs incurred by the petitioning creditor in bringing the petition against you, as well as all your other debts and the fees and expenses due to the Official Receiver, which based on current legislation may well be at least £8,775.00.

If you require more information on this topic, do not hesitate to contact us on 0113 242 0808 or advice@chamberlain-co.co.uk