What is rescission of a bankruptcy?
The court has the power under section 375 (1) to “review, rescind or vary” a bankruptcy order. Therefore, if the grounds for a bankruptcy annullment do not exist, then in limited circumstances, you can make a recission application which brings the bankruptcy to an end (but does not treat the bankruptcy order as having never been made).
When can a bankruptcy be rescinded?
Ordinarily, an annulment is the most common way to cancel a bankruptcy order. However, if the grounds do not exist then a rescission can be applied for in exceptional circumstances.
One example has been where there has been a change in circumstances since the bankruptcy order was made. For example, in Fitch v Official Receiver [1996] 1 WLR 242, the petitioning creditor supported the debtors applications to rescind the bankruptcy orders because the creditor believed that the ongoing bankruptcy prejudiced the recovery of a substantial asset.
Official Receiver’s costs
The Court will likely make provision for the Official Receiver’s costs in the rescission order. However, if the bankrupt does not pay these costs, the Official Receiver has the right to request that the rescission not be granted until its’ fees are paid.
Instruct Specialist Bankruptcy Rescission Solicitors
We are a specialist City of London law firm made up of Solicitors & Barristers operating from the only law firm based in the Middle Temple Inns of Court adjacent to the Royal Courts of Justice. Generally many solicitors are unfamiliar with the Insolvency Rules and the minutiae of the bankruptcy process, we are experts in dealing with matters surrounding individual insolvency.
Our team have unparalleled experience at cancelling bankruptcy orders, liaising with the Official Receiver, providing a solicitor’s undertaking, representing you at any bankruptcy hearing at the Bankruptcy Court, at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.
