Annulments of bankruptcy orders

What is an annulment?

The annulment of a bankruptcy order effectively cancels the original bankruptcy order—it is as if the bankruptcy order was never made. An annulment order is usually made under section 282 of the Insolvency Act 1986 (IA 1986).

It differs from an order rescinding a winding-up order in corporate insolvency and the two processes should not be confused.

It matters not whether the bankruptcy order was made by the court or by the bankruptcy adjudicator.

The grounds needed for an annulment

There are three grounds on which the court can make an order annulling a bankruptcy order:

1. •

   if it appears to the court that, on any grounds existing when the bankruptcy order was made, the order ought not to have been made (IA 1986, s 282(1)(a))

2. •

   if it appears to the court that, to the extent required by the rules, the bankruptcy debts and the expenses of the bankruptcy have all, since the making of the bankruptcy order, been either paid or secured to the satisfaction of the court (IA 1986, s 282(1)(b))