Bankruptcy annulment

[Simonbanks]

Hi

I am curious. I recent made someone bankrupt and during the hearing and due to the defendants previous appeals and requests to set aside judgement etc etc etc the judge made it perfectly clear that the defendant had no prospect of success re any grounds for appeal both verbally and in the order. Subsequently the OR has offered the opportunity to annul the bankruptcy. Now I understand if he pays off all of his debts then the bankruptcy is annulled but he is now making an application to annul stating the bankruptcy order should never have been made, effectively introducing yet another appeal process. Nothing has changed legally since the initial CCJ was awarded against him over 3 years ago and he hasn’t apparently provided anything new to proceedings that the court had not heard already before. The debtor seems to be exploiting and abusing the courts processes at every turn, in every attempt to try and avoid his debts and has lied to the courts in his attempts to do so. Can this new request to annul based on the directions of an OR, which I believe was intentional only if his debts were paid, really be allowed to continue given exhaustive appeals etc before and given he has lied extensively throughout which seems to be being continually over looked?

[atticus]

A bankruptcy order can be annulled if:

1. The order should not have been made; or

2. All the bankruptcy debts and costs have been paid in full.

Your debtor can make his application. You can oppose it. The history suggests that he will have an uphill struggle persuading a judge.

I have dealt with applications under the second ground. Expensive for the debtor, but doable. Usually funds are raised by mortgage borrowing against the debtor's property.

[Simonbanks]

Thank you. I guess my ‘concern’ is that he keeps ( and I do mean repeatedly) being given life lines despite loosing appeal after appeal, requests to set aside judgements, variation orders, further appeals and so it goes on. Who are the OR to offer yet a further chance of effectively yet another appeal given they are not legally trained.

As yet I haven’t seen anything from him or the courts on this but as the OR has been totally ineffective to date, I have appointed a solicitor to manage the transition away from the OR to an IP as it is clear to me that the OR has no real incentive to manage this processes effectively or quickly, whereas an IP gets paid from the estate. During these ‘discussions’ my solicitor has advised that the OR was told the bankrupt was taking this action but as yet hasn’t seen anything, so we reminded the OR that they must continue dealing with this as a live bankruptcy and not just sit back which they were doing, hence appointing an IP.

What also alarms me is that I am aware he could make this annulment request at any point during the 12 months of bankruptcy and knowing the debtor well, I am sure as with everything else, he will leave it to the last minute to react. Are there benefits to carrying out the action if indeed he does, sooner rather than later?

[atticus]

The OR or trustee can apply to court to suspend automatic discharge from bankruptcy. Your solicitor will advise further.