If you find yourself subject to bankruptcy proceedings or a bankruptcy order, broadly there are three options available to you.
You can either approach the court and make a formal application for annulment, or you can consider making a proposal to your creditors for an individual voluntary arrangement which is an alternative insolvency procedure if you have available assets, income or potentially a third party is prepared to provide funds to assist you to do a deal with your creditors as part of a full and final settlement. However, you may on receiving advice also decide to remain within the current bankruptcy proceedings.
Should you wish to seek an annulment of the bankruptcy order, you will have two available grounds to apply to the court for an annulment. This being either the payment in full of all of the known debts, not only the petition debt, but all of the known debts, plus all of the costs and expenses of the proceedings, being those of the petitioning creditor and the Official Receiver, or alternatively, on the grounds that the order “ought not to have been made.” This occurs in circumstances where either:
1 – You believe that the debt is incorrect and you have documentary evidence of that which shows that the debt is either not payable at all or that the balance actually outstanding is less than £5,000 (the current minimum sum required to form the basis of a bankruptcy petition)
2- The petitioner has not served the proceedings upon you in a satisfactory manner.
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