Many people think that once the bankruptcy process has begun, it is impossible to have it cancelled. However, a bankruptcy can be annulled under very special conditions.

If the debt has been settled before the bankruptcy hearing, the process can be stopped. It can also be stopped if you have arranged an IVA (Individual Voluntary Arrangement) with your creditors. If you feel that you were given incorrect information and have since discovered that bankruptcy is not your only option, you can also apply for an annulment.

To apply for an annulment, you will need to obtain an affidavit from the court. This will allow you to explain why the bankruptcy should not be actioned. The affidavit will then be sent to the court and you will receive a date for your application to be heard. You will need to notify your Official Receiver of the hearing and send him full copies of your application. Shortly after your annulment, the court will decide who should pay the fees and expenses which were incurred when setting up the bankruptcy.

Can I stop my reversed bankruptcy from being advertised in the press?
Yes, but only if you act quickly. If you have recently applied you may be able to apply to the court for a ‘stay of advertisement’. You must also inform your Official Receiver as it his duty to advertise your bankruptcy in the newspaper and the London Gazette.

Will I still lose all of my assets?
It depends on how long the bankruptcy has been running for. If you are a quarter or half way through your bankruptcy and you receive enough money to be able to pay off all of your outstanding debt, you can apply for an annulment which will return you back to your former pre-bankruptcy status. However, any assets which were sold prior to your annulment will not be returned. Any assets which were not sold will be returned to you.