Bankruptcy Petitions & Annulment

We are leading experts specialising in Bankruptcy Petitions. We regularly assist with issuing petitions or setting aside statutory demands or defending petitions. We also specialise in making bankruptcy annulment applications.

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Your search for help in relation to debt recovery or to avoid bankruptcy ends here. Our results-focused team made up of experienced insolvency lawyers can assist by providing you with a bespoke solution if you are an individual facing a debt or bankruptcy petition.

What is bankruptcy?

Bankruptcy is a legal process designed to help individuals or businesses who are unable to pay their debts. When someone files for bankruptcy, they are essentially declaring that they are insolvent and unable to meet their financial obligations. In the UK, bankruptcy is governed by the Insolvency Act 1986, and the process is overseen by the Insolvency Service. The goal of bankruptcy is to allow the debtor to make a fresh start by discharging their debts, but it also involves the liquidation of their assets to pay off creditors.

How do I declare myself bankrupt?

To declare yourself bankrupt in the UK, you will need to fill out an application and submit it to the Insolvency Service. Application should be supported by a Statement of Affairs detailing your current financial position. You can apply online or by post, and there is a fee to pay (currently £680). Before you apply, it is recommended that you seek professional advice from a qualified debt advisor or a licensed insolvency practitioner.

Once you have applied for bankruptcy, and the application is successful, the court will issue a bankruptcy order within 28 days, which will be sent to you and your creditors. Your assets will then be transferred to the control of a trustee, who will sell them to repay your debts as far as possible. There are certain assets that are exempt from bankruptcy, such as essential household items and tools of the trade.

It’s important to note that bankruptcy is a serious step to take, and it can have long-lasting consequences, such as restrictions on your ability to obtain credit and difficulties in securing certain types of employment. Therefore, you should carefully consider all of your options and seek professional advice before deciding to declare bankruptcy. We can advise you on the procedures and consequences of bankruptcy and any alternative options available to you.

Which debts cannot be included in bankruptcy?

While bankruptcy can discharge many types of debts, there are certain debts that cannot be included in the bankruptcy process. These include:

  1. Secured debts: Debts that are secured against a specific asset, such as a mortgage or car loan, cannot be discharged through bankruptcy. The asset may be sold by the trustee to repay the debt, but any remaining debt will still be owed by the debtor.
  2. Court fines and penalties: Debts owed to a court or government agency, such as fines or tax debts, cannot be discharged through bankruptcy.
  3. Student loans: Student loans are generally not included in bankruptcy, although there are some exceptions in certain circumstances.
  4. Debts incurred through fraud or illegal activity: Debts that are incurred through fraud, theft, or other illegal activity cannot be discharged through bankruptcy.
  5. Maintenance and child support: Debts owed for maintenance or child support cannot be discharged through bankruptcy.

It’s important to note that bankruptcy can have long-lasting consequences, such as restrictions on credit and difficulties in securing certain types of employment. Therefore, it’s important to seek professional advice before deciding to declare bankruptcy.

Can I oppose bankruptcy petition?

Yes, it is possible to oppose a bankruptcy petition in the UK. If you have been served with a bankruptcy petition, you have a number of options, including, If you are able to pay the debt in full or negotiate a settlement with the creditor, the bankruptcy petition may be withdrawn; You can apply to the court to have the bankruptcy petition dismissed if you believe that it has been issued unfairly or if you have a defence against the debt.

If you are unable to pay the debt in full, you may be able to enter into a voluntary arrangement with your creditors. This involves making regular payments to a trustee, who will distribute the funds to your creditors.

If you have little or no income or assets, you may be eligible for a debt relief order, which is a form of insolvency that can discharge your debts.

It’s important to seek professional advice if you are facing a bankruptcy petition, as the consequences can be serious and long-lasting. A qualified debt advisor or insolvency practitioner can provide guidance on your options and help you to make an informed decision.

What is the procedure to oppose a bankruptcy petition?

To oppose a bankruptcy petition, you will need to follow the appropriate legal procedures. The steps involved in opposing a bankruptcy petition include: Carefully reviewing the bankruptcy petition and any accompanying documents to ensure that you understand the allegations being made against you.

If you believe that the bankruptcy petition has been issued unfairly or if you have a defence against the debt, you will need to prepare a defence to present to the court. This may involve gathering evidence, such as bank statements or other financial records. Within 14 days of being served with the bankruptcy petition, you must file an acknowledgement of service with the court. This confirms that you have received the petition and indicates whether or not you intend to oppose it.

If you intend to oppose the bankruptcy petition, you will need to file a defence with the court within 21 days of being served with the petition. You will be required to attend a court hearing to present your defence and argue against the bankruptcy petition. The court will consider the evidence presented by both sides and make a decision as to whether or not to issue a bankruptcy order.

If you are considering opposing a bankruptcy petition, it is important to seek professional advice from a qualified debt advisor or insolvency practitioner. We can provide guidance on the legal procedures involved and help you to prepare a defence.

Can my bankruptcy be cancelled?

Yes, it is possible for a bankruptcy to be cancelled or annulled in the UK. There are a number of reasons why a bankruptcy order may be cancelled, including:

  1. Payment of debts: If the debts that led to the bankruptcy order have been paid in full, the bankruptcy can be cancelled.
  2. Errors in the bankruptcy process: If there were errors in the bankruptcy process, such as a failure to properly notify all creditors or an incorrect valuation of assets, the bankruptcy can be cancelled.
  3. Agreement with creditors: If an agreement can be reached with creditors, the bankruptcy can be cancelled. This may involve negotiating a repayment plan or entering into a voluntary arrangement.
  4. Change in circumstances: If there has been a significant change in circumstances, such as a change in income or a windfall of funds, the bankruptcy can be cancelled.
  5. Application to court: An application can be made to the court to cancel a bankruptcy order. The court will consider the circumstances of the case and make a decision as to whether or not to cancel the order.

It’s important to note that cancelling a bankruptcy order can be a complex and lengthy process, and may involve additional costs and fees. It’s important to seek professional advice from a qualified debt advisor or insolvency practitioner if you are considering applying to cancel your bankruptcy order.

How do I annul my bankruptcy?

To annul a bankruptcy order in the UK, you will need to follow the appropriate legal procedures. The steps involved in annulling a bankruptcy order include:

You will need to obtain a copy of the bankruptcy order from the court that issued it. You will need to gather evidence to support your application to annul the bankruptcy order. This may include evidence that the debts have been paid, evidence of errors in the bankruptcy process, or evidence of a change in circumstances.

You will need to file an application to court to request that the bankruptcy order be annulled. This must be done using the appropriate form and must be accompanied by the relevant evidence. You will be required to attend a court hearing to present your case for why the bankruptcy order should be annulled. The court will consider the evidence presented by both sides and make a decision as to whether or not to annul the order.

Once the bankruptcy order has been annulled, you will need to notify your creditors and the Official Receiver that the bankruptcy has been annulled.

It’s important to note that annulment of a bankruptcy order can be a complex and lengthy process, and may involve additional costs and fees. It’s important to seek professional advice from a qualified debt advisor or insolvency practitioner if you are considering applying to annul your bankruptcy order.

What happens at the end of a bankruptcy?

At the end of a bankruptcy, the debtor is discharged from bankruptcy and their assets are released back to them. Here’s what happens at the end of a bankruptcy:

In most cases, the debtor will be automatically discharged from bankruptcy after 12 months. This means that they are no longer legally bound by the bankruptcy order and can apply to have their assets returned. If there are any outstanding debts that have not been paid, these will remain outstanding after the discharge from bankruptcy. However, the debtor will no longer be pursued for these debts and the creditors will not be able to take any further legal action to recover them. A bankruptcy will remain on the debtor’s credit file for six years from the date of the bankruptcy order. This may make it more difficult for the debtor to obtain credit in the future.

If the debtor has been subject to bankruptcy restrictions, these will remain in place after the discharge from bankruptcy. This may include restrictions on running a business or acting as a company director. After discharge from bankruptcy, it’s important to take steps to rebuild credit. This may include obtaining a credit card with a low limit and making regular payments, or taking out a small loan and repaying it on time.

It’s important to seek professional advice from a qualified debt advisor or insolvency practitioner if you are facing bankruptcy. We can provide guidance on the legal procedures involved and help you to understand your options.

What happens after the bankruptcy petition?

If the bankruptcy petition is successful, the Court will make a bankruptcy order within 28 days. Following receipt of the sealed order, you will attend an interview with the Official Receiver, who will notify the Land Charges Department that the bankruptcy order has been made and this will be added to the public register of writs and orders.

We have the strongest possible record of success in dealing with numerous bankruptcy petitions and are regularly recommended to clients by leading accountants and leading insolvency professionals.

You can be assured that your insolvency matter is in safe hands and that we will act cost effectively. Our success rate is a result of the dedication of our insolvency lawyers who will diligently review your matter to ensure it has the best possible chance of success from the outset when it matters the most.

Our Expert Bankruptcy Petition Solicitors

We are leading experts specialising in Bankruptcy Petitions. We regularly assist with issuing petitions or setting aside statutory demands or defending petitions. We also specialise in making bankruptcy annulment applications.

We can guide you through the minefield of complex bankruptcy rules and procedure and help your company to manage the entire process.

We have years of experience in negotiating with creditors and their solicitors (in particular HMRC). We regularly represent our clients in the High Court/Bankruptcy Court and successfully obtain adjournments (e.g. to allow time to negotiate and settle or to defend a bankruptcy petition) or apply for annulment.

Book an initial consultation with expert Bankruptcy Solicitors and Barristers

We are a specialist City of London law firm made up of Solicitors & Barristers and are based in the legal heart of London in Middle Temple (one of the four prestigious barristers’ Inns of Court) adjacent to the Royal Courts of Justice.

We are experts in dealing with matters surrounding bankruptcy including defending bankruptcy petitions; managing bankruptcy applications (including annulments); advising on bankruptcy petitions and offences; and liaising with the Official Receiver. Whilst we are based in London we provide national coverage across all Courts in England & Wales. 

Check Your Litigation Case ✔

We analyse your case prospects. We deliver strategic legal advice at your first fixed fee meeting. We get optimal legal results. Want our opinion on your case? Click below or call our lawyers in London on ☎ 02071830529

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Please note that for regulatory reasons we do not offer any free advice.