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What does a bankruptcy annulment mean?

When a bankruptcy is annulled, the court cancels the bankruptcy order that made you bankrupt. The effect in law is as if the bankruptcy never happened and you will revert to your pre-bankruptcy status.

When you are made bankrupt, you lose control over your assets which are used to help pay your bankruptcy debts. Only the assets that have not been sold at the time the court annuls your bankruptcy will be returned to you.

Your trustee (the person appointed to manage your bankruptcy) can confirm what assets can be returned to you.

When can your bankruptcy be annulled?

Your bankruptcy can be annulled if:

• the bankruptcy order making you bankrupt should never have been made
  
• all the debts, fees and expenses of your bankruptcy have been paid in full
  
• your creditors (people you owe money to) have accepted an alternative to bankruptcy

You should get professional advice if you think your bankruptcy should be annulled.

• Find a solicitor or advice agency

Annulment and the Official Receiver

After you have been made bankrupt, your bankruptcy is publicly advertised by the Official Receiver (an officer of the bankruptcy court).

To stop this, apply to the court for a 'stay of advertisement'. You should also tell your Official Receiver that you are doing this and seek legal advice on how to get a stay of advertisement.

Your Official Receiver will contact anyone they told about your bankruptcy that it has been annulled. For example, your bank, creditors or mortgage provider.

• Find a solicitor or advice agency

• Bankruptcy - the role of the Official Receiver

• Contact your local Official Receiver

Annulment and the Individual Insolvency Register

The Individual Insolvency Register is an online database of insolvency cases in England and Wales. Three months after The Insolvency Service has been told about your annulment your details will be removed from the register. In cases where the bankruptcy order should not have been made, it is 28 days after The Insolvency Service has been told.

• Search The Individual Insolvency Register

Annulment and your home

If you are made bankrupt and own a property, 'bankruptcy restrictions' are entered against the property in a database managed by Land Registry. These entries can prevent you selling your home or receiving any money from its sale.

Your home or business address is linked to your bankruptcy and details kept on a public register called the ‘Land Charges Register’. This can affect any applications for credit (like a loan) that quote the address.

To remove these entries, ask the court to include a 'cancellation notice' in your annulment order. Make sure the cancellation notice includes the information about the property as specified in the bankruptcy restriction. Send an official copy of the annulment order along with:

• form AP1 to cancel the entry in the land registry
• form K11 to cancel the entry in the land charges register

• Download form AP1 (PDF, 76K) Opens new window

• Download form K11 (PDF, 166K) Opens new window

• Help with PDF files

• Guide: Getting Bankruptcy orders removed from public registers Opens new window

• Bankruptcy - what happens to your home

Annulment and your credit rating

The credit reference agencies keep details of your bankruptcy on your credit file. This is the record that lenders check when you apply for credit (like a mortgage or loan). It is your responsibility to update your credit file.

To update your credit file, send the credit reference agencies a copy of any official document confirming the annulment. There are three credit reference agencies you need to contact.

• Credit reference agencies Opens new window

How to get a bankruptcy annulled

You have to apply to the court to get your bankruptcy annulled. The forms you need depend on the reasons for annulling your bankruptcy.

You should get legal advice to help you:

• complete the annulment forms
  
• understand the legal procedures
  
• understand what fees, costs and expenses must be paid

The court will consider your case, confirm any costs or fees that have to be paid and either accept or reject your annulment.

• Debt - where to get free help and advice

• Find a solicitor or advice agency

• Get the forms to annul a bankruptcy order from The Insolvency Service website Opens new window

• Find your nearest bankruptcy court

Steps to take if the bankruptcy order should never have been made

1. complete Form 7.1A - application form
   
2. show why the bankruptcy order shouldn’t have been made
   
3. swear in writing (a statement of truth) these facts are true and correct or get a witness statement confirmed by a statement of truth form
   
4. take the paperwork to your nearest bankruptcy court - a date will be set to hear your case
   
5. send copies of your paperwork and details of the hearing to your Official Receiver and trustee
   

Steps to take if all the debts, fees and expenses of your bankruptcy have been paid in full or security (guarantee) given

1. complete Form 7.1A - application form
   
2. detail your assets and how your debts have paid or payment guaranteed
3. swear in writing (a statement of truth) these facts are true and correct or get a witness statement confirmed by a statement of truth form
   
4. take the paperwork to the your nearest bankruptcy court - a date will be set to hear your case
   
5. send copies of your paperwork and details of the hearing to your Official Receiver and trustee within 28 days of the hearing

Steps to take if your creditors agreed to an individual voluntary arrangement (IVA)

An IVA is a way of dealing with your debts. An authorised debt specialist called an ‘insolvency practitioner’ agrees with your creditors for you to make regular payments towards your debts.

1. an insolvency practitioner organises a meeting of your creditors to accept your IVA. You can apply to have your bankruptcy annulled 28 days after your creditors tell the court that they accepted your IVA
   
2. confirm that your creditors have approved an IVA by swearing in writing (a statement of truth) this is true and correct or get a witness statement confirmed by a statement of truth form
   
3. take the paperwork to the your nearest bankruptcy court - a date will be set to hear your case
   
4. send copies of your paperwork and details of the hearing to your Official Receiver and trustee

• Individual voluntary arrangements (IVAs) - ways out of debt

Steps to take if your creditors have agreed to a fast-track voluntary arrangement (FTVA)

An FTVA is an agreement between you and your creditors where you agree to pay all or part of your debts.

1. contact your Official Receiver to get the FTVA forms - they can help you fill them in
   
2. your Official Receiver will ask your creditors to accept your repayment arrangements and then apply to the court to annul the bankruptcy order - usually five to seven weeks later
   

• Fast-track voluntary arrangements - ways out of bankruptcy

More useful links

• Where to send your Land Registry forms Opens new window

Useful contacts

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