Bankruptcy Annulments Solicitors

As Featured In

If you need support with a bankruptcy petition, our solicitors in Birmingham, Northampton or London will be happy to advise you. Simply give us a call today to find out how we can help you.

How We Can Help: Grounds Upon Which A Bankruptcy Can Be Annulled

Generally, there are three main grounds upon which you can apply for an annulment:

• All of the bankruptcy debts and expenses have been paid or secured in full to the satisfaction of the court
• An undischarged bankrupt individual has made an individual voluntary arrangement (IVA) with their creditors
• In very rare cases, applications can be made on the grounds that the bankruptcy order was wrongly made. Usually, this is only applicable in instances where there were no outstanding debts or they have already been paid

When The Bankruptcy Order Should Not Have Been Made

Applications made on this ground can be quite complex as the individual is applying to the annual bankruptcy order on the basis that it should not have been made for one or more of the following reasons:

• The debt listed on the bankruptcy petition could have been set or substantively disputed by the bankrupt individual
• The court did not have the authority to make the bankruptcy order. In such cases, the bankrupt individual will need to show that England and Wales were not their ‘centre of main interests’
• There is a technical defect in the legal procedure, such as the service of the bankruptcy petition is incomplete or defective
• There has been a breach of natural justice. For example, the bankrupt individual was not given sufficient notice of the hearing and therefore could not attend it
• The bankruptcy order was based on evidence that has been proven to be false or untrue
• The creditor has agreed to give the debtor time to pay off the outstanding debt and postpone the hearing. However, the creditor’s solicitor was unaware of the agreement and made the order

It is worth noting that the court has a lot of discretion whilst deciding whether to annul a bankruptcy order on this ground. This means that if the court concludes that the order should have been made, it is likely that your application will be dismissed. As the circumstances in which this ground can be relied upon are limited, our solicitors are here to offer expert legal advice to help you understand what your options are.

Making An Application To Annul The Bankruptcy

If you wish to annul your bankruptcy, it is in your best interests to make an application at the earliest opportunity. The reason for this is that the official receiver or trustee will gain control over your assets once the order has been made to dispose of them and will use the money to pay your creditors. You will also no longer be able to operate a normal bank account or act as a director of a limited company. To make an application to the court, you will need to take the following steps:

• Complete and issue your application form
• Submit the correction information and evidence along with a witness statement
• Pay the court fee 

Once your application has been completed and the relevant fees have been paid, the court will set a date for your hearing. It is at this point that the witness statement and application will need to be served to the official receiver and the trustee if one has been appointed. If your application has been made on the ground that an order should not have been made, it will also need to be served to the petitioning creditor. There is a time limit of 14 days before the hearing for these documents to be served correctly.

If the court concludes that you have proven one of the grounds for annulment at the hearing, your bankruptcy will be annulled through a court order. The court will also include a provision to remove any entries of bankruptcy in the Land Charges Register, allowing you to apply to the Land Registry for their removal. Our experts are here to support you every step of the way, providing expert legal advice to ensure your best interests are protected.

Funding Your Annulment

While it is possible to raise money for your annulment from your family and friends, we understand that your loved ones may not be in the financial position to help you out. The good news is that there are alternative methods of raising the money you need. For example, you can obtain annulment finance from a specialist lender.

Generally, annulment finance is provided on the basis of owning property that has substantial equity in it. Loans can be raised at 65% loan to value (LTV). For example, if your property is valued at £300,000, you can raise a loan of up to £195,000. This allows you to retain control of the sale of the property as opposed to allowing the trustee to carry out a forced sale at a lower value. Our specialists can help you find the most appropriate solution and recommend an experienced, unaffiliated broker who can assist.

We also provide a range of funding options, including:

• No win, no fee
• No win, low fee
• Legal expenses insurance
• Damages-based agreements
• Fixed fees
• Fixed cost start
• Litigation funding

Trustee Costs And Expenses

As the bankrupt individual, you also have the right to bring a cost challenge against a trustee. Our insolvency solicitors will assist in formulating the challenge. For a free, no-obligation consultation, contact our insolvency experts on 0300 303 2071 or send an email to info@witansolicitors.co.uk.

FAQ

 When do I need to apply for an annulment?

If you come to an agreement with your creditors to pay them, you can apply to the court to annul your bankruptcy. You can also apply for an annulment if you believe the order should not have been made. Similarly, an annulment application can be made in cases where debts and expenses have been paid in full, or alternatively, debts and expenses have been secured for to the court’s satisfaction.

When should I make the application for annulment?

As bankruptcy can ultimately be damaging to yourself and your business, if you have one, it is important to get in touch with our solicitors as soon as the order has been made. Our team can help you get your application right so you can restore your credit as soon as possible.

Which debts are not included in bankruptcy?

Bankruptcy does not clear the following debts:

• Secured debts
• Child maintenance
• Overpayment of benefits, income support and tax credits by means of fraud
• Court fines
• Student loans
• Fraud
• Personal injury claims
• Debts acquired before bankruptcy