Abacus Solicitors are able to assist you in defending a bankruptcy petition but what if you have already been made bankrupt?
Bankruptcy can have severe consequences on your credit rating, your ability to run a business, your employment and your home, however there is a way to cancel or annul the bankruptcy by making an application for annulment to Court.
The quicker you make this application the less effect the bankruptcy will have had on your livelihood.
There are two grounds in which you are able to make this application under the Insolvency Act 1986 these are:
- that the bankruptcy order ought not to have been made, or
- the bankruptcy debts and the expenses of the bankruptcy have all, since the making of the order, been either paid or secured for to the satisfaction of the court. This may include entering into an Individual Voluntary Agreement,
The annulment is a complete undoing of the bankruptcy, the affect of which is as if the bankruptcy never happened, although if the Official Receiver or Trustee in Bankruptcy has disposed of some of your assets prior to the annulment application these are usually still valid dispositions. Again this is a reason why you should act quickly as an annulment application is likely to prevent or at least delay the Official Receiver or Trustee in Bankruptcy selling your assets to repay your creditors.
You are usually dismissed from bankruptcy after a year however the effects of a bankruptcy petition can last up to 6 years! Therefore if you believe that you fit into the two categories above it is always worth seeking independent legal advice to determine whether it is worth you making an application to annul your bankruptcy.
At Abacus we are always happy to discuss your case with you and make your annulment application on your behalf. As most people secure their annulment through third party funds we are able to assist you in negotiating with lenders and dealing with any subsequent conveyancing matters. Most lenders refuse to lend to someone who is subject to a bankruptcy order however with our expertise we are able to explain the process to the lender and protect both your and the lenders position. This leads to a successful transaction on everyone’s behalf.
Civil Litigation Solicitor at Abacus, Hannah Vachre tells us about a recent case…
“Mr E was recently declared bankrupt for the modest sum of £3,000.00 by his local Council for unpaid Council tax.
Once you are made bankrupt the Official Receiver or Trustee in Bankruptcy will contact all of your creditors to determine the total amount which you owe and seek to repay them. Up until this point Mr E had buried his head in the sand but suddenly became aware that there was a threat of his home being repossessed and sold by the Trustee in Bankruptcy and the proceeds distributed to his creditors. Mr E contacted us seeking assistance.
Mr E had already approached a lender to lend him the funds to repay all of his bankruptcy debts and expenses however, due to Mr E’s bankruptcy, the lender needed confirmation that their position would be protected and they were able to take a legal charge or mortgage upon Mr E’s property.
We corresponded with the Trustee in Bankruptcy and Mr E’s creditors and reached an agreement where they would all be paid by way of the loan provided by the lender. We ensured that the lenders position was protected and made the annulment application upon Mr E’s behalf.
Although in this matter the lender was unable to arrange the transfer of the funds by the date of the first annulment hearing, we explained the situation to all parties involved and the Court and reassured everyone of their position. We ensured that all parties were fully updated and successfully obtained an Order for annulment at the adjourned Court hearing.
Mr E was then able to repay the loan by whichever method he chose.”
If you have been made bankrupt and you think you have grounds for annulment, call Hannah on 0161 833 0044 and she will advise you of the best course of action or email firstname.lastname@example.org
Follow Hannah on twitter @HVabacus