Bankruptcy Order

What is a Bankruptcy Order?

A bankruptcy order is an order which is used when an individual files for bankruptcy. The bankruptcy order itself contains the terms of the bankruptcy, including the length of the bankruptcy and any special conditions.

Annulment of a Bankruptcy Order

You can apply to annul (cancel) a bankruptcy order in certain circumstances. An annulment is a procedure that can only be dealt with by the court and can be made at any time the court sees fit.

An annulment may be made if:

a) It can be proved that the bankruptcy order should not have been made in the first place.

b) Your creditors agree to the terms of an Individual Voluntary Arrangement whereby you pay back some or all of your debts over an agreed period of time.

c) The court is satisfied that all of your bankruptcy debts, which must include all fees and expenses incurred during the bankruptcy proceedings, are paid in full, or are guaranteed to be paid.

If a bankruptcy order is successfully annulled you will return to your pre-bankruptcy position. However, any disposal of assets that has been dealt with by the Official Receiver or trustee will still be valid and will not be reversed. Any other assets that had, until this point, been included as an asset of your bankruptcy, will be returned.

Remember that any debts that you were liable for prior to the bankruptcy order being made will still stand if they were not dealt with during the bankruptcy period. If you do not pay these debts as they fall due, your creditors may still take proceedings against you that may result in a further bankruptcy order being made.

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