How to get your bankruptcy order annulled – The Judge’s decision is not always final

Business Advisor Insolvency

At Gibson Hewitt we frequently meet individuals who have been declared bankrupt when it would otherwise be avoidable. Bankruptcy is very rarely the best option for a debtor with assets no matter how much he might owe. Surprisingly, bankruptcy is also rarely the best option for a creditor. Only the most vindictive creditor will pursue this route when a viable commercial alternative is on the table.

This begs the very good question of why anyone is ever declared bankrupt at all? There are of course some situations when it is appropriate, typically where a debtor has no assets and no job, (or an employer who would not be concerned by a bankrupt member of staff).

For everyone else, alternatives should always be explored before you allow yourself to be declared bankrupt. – phone us for FREE advice as early as possible!

But what if a bankruptcy order has already been made? Regardless of what you might think, the situation is still capable of rescue but you need to act without delay.

The scenarios leading to an avoidable bankruptcy order typically fall into one of the following categories:

  1. Disputed debt The now bankrupt person denies liability for the petition debt but the Court decides that the debt is due and made a bankruptcy order. Often this comes down to a matter of principle or a belief that since the Courts apply justice, the Judge will concur with your side of the story. You might have lost the battle but there is still a chance to win the war.
  2. Not enough cash to go around The debtor has some assets and cash but just not enough to keep all of the wolves at bay. This is probably the most common scenario leading to a bankruptcy, however, if you have not yet taken advice, how can you be sure it is the best option for you?
  3. The proverbial ostridge The debtor knows they need to do something about the unpaid debt and the bankruptcy petition but never gets around to it. This may appear embarrassing but a surprisingly high number of bankrupts fall into this category. If this is your situation, you are not the first and you will not be the last. The Judge’s gavel might have fallen but we can still rescue the situation. The sooner you phone us, the better we are able to limit the damage caused by the bankruptcy order.
  4. The surprise petition Imagine this scenario, you get home and open the post to discover a bankruptcy order with your name on it having received no correspondence previously on the matter! Whilst a bankruptcy petition is supposed to be served on a debtor personally, there are a few mechanisms where personal service is not required. Most often this will relate to a petition by HMRC but this is not always the case. Regardless of how the situation arose, you now need to take steps to strike the bankruptcy order off the record.
  5. Asset rich but cash poor The debtor is desperately trying to realise cash to pay the petitioning creditor. Perhaps a property is being sold but fails to complete before the bankruptcy hearing. You don’t want to remain bankrupt and since the costs of the bankruptcy will diminish the proceeds of sale, your creditors don’t wish you to remain bankrupt either.

Regardless of which scenario might apply to you, we can still help. Gibson Hewitt have obtained annulments of bankruptcy orders on behalf of debtors who have found themselves in each of the above scenarios. The beauty of an annulment of a bankruptcy order is that it means in legal terms the order was never made – to the outside world you were never declared bankrupt!

All you need to do is phone 01932 336149 or 0800 195 5858 and ask for Lynn Gibson. The first meeting is free so you have absolutely nothing to lose. Act without delay!

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