There may be some circumstances where you can get your bankruptcy annulled or cancelled. Most creditors do not want to make you bankrupt unless they have a personal or business reason to do so. If you are genuinely insolvent and cannot afford the debt then it will be expensive and unprofitable for them.
When can you cancel bankruptcy?
Here are a couple of examples of when you can cancel your bankruptcy:
- If you think the bankruptcy order should never have been made in the first place (e.g. you owe less than £5000).
- If you have paid all your bankruptcy debts and expenses in full.
- You have an Individual Voluntary Arrangement (IVA) with your creditors to pay all or part of your debts. The Official Receiver (OR) can you with this by using a fast track IVA.
Applying to cancel Bankruptcy
There are a number of ways you can apply for bankruptcy annulment. The process you follow will depend on your reason for annulment. The general process would include:
- Completing the Insolvency Act Application (IAA) form.
- Return the completed IAA to the nearest court that deals with bankruptcy matters.
- Notify the OR or trustee of the hearing and send them a copy of your application
- Attend the court hearing
- If successful in court, the court will make an annulment order to cancel your bankruptcy.
What happens after I cancel bankruptcy?
When you cancel your bankruptcy, you legally return to the same position you were before you received the bankruptcy order. However please be aware of the following:
- You will lose any property that the OR or trustee have already sold or disposed of.
- Your record of bankruptcy will be removed normally 5 days after the annulment.
- It is your responsibility to tell credit reference agencies about your current situation, so they can update their records.
You may also like to read our article on what happens after bankruptcy discharge.
Still need help?
The government website provides more details on bankruptcy annulment: