The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
It is not uncommon for bankruptcy and divorce proceedings to run concurrently, or for one set of proceedings to impact on the other. For further reading on the effect bankruptcy and divorce proceedings have on one another see Practice Note: The impact of bankruptcy on divorce proceedings.
Due to the impact bankruptcy proceedings can have on divorce proceedings (financial relief applications, known as property adjustment orders), there are sometimes situations where an unscrupulous divorcing party may allow themselves to fall into bankruptcy in order to defeat any ongoing divorce proceedings. In these circumstances, both the family and bankruptcy courts have the power (in the right circumstances) to challenge the bankruptcy order and its overall effect.
There are a number of challenges available to the non-bankrupt divorcing spouse, which can be pursued in both the bankruptcy and family court. These are:
an application to annul the bankruptcy order
an application to rescind the bankruptcy order
an application to deal with the bankruptcy within the terms of the divorce proceedings
An annulment of the bankruptcy order is the most common route for the non-bankrupt divorcing spouse to take if the conditions are in place and the court is satisfied it can exercise its discretion. Therefore, even if the necessary conditions are
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