STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The content in this Q&A may have been affected by this change. Section 261 of the Insolvency Act 1986 (IA 1986) is contained within IA 1986, Pt VIII, which deals with individual voluntary arrangements (IVAs). The section applies where the creditors’ meeting under IA 1986, s 257 approves the proposed IVA and the debtor is an undischarged bankrupt. Where this section applies, the court shall annul the bankruptcy order on an application made by the bankrupt. IA 1986, s 261(4) then states that ‘Where this section applies the court may give such directions about the conduct of the bankruptcy