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Legal document stamped annulled on a wooden desk with a gavel - bankruptcy annulment concept

Bankruptcy Annulment

Updated for 2026

A bankruptcy annulment has the effect in law that the bankruptcy order was never made. If your bankruptcy is annulled, you revert to your pre-bankruptcy status. Any disposals of property already carried out by the Official Receiver or trustee will remain valid, but any other assets will be returned to you, and you will once again be liable for any debts that were not paid during the bankruptcy.

Annulment is different from bankruptcy discharge, which happens automatically after 12 months. Annulment effectively wipes the slate clean as if the order never existed.

When Can You Apply for a Bankruptcy Annulment?

You can seek to have your bankruptcy annulled under the following circumstances:

  • The bankruptcy order should not have been made in the first place. For example, you may not have received the proper advice beforehand, and an alternative solution such as an Individual Voluntary Arrangement (IVA), a Debt Relief Order (DRO), or a Debt Management Plan (DMP) may have been more suitable.
  • The bankruptcy order was made based on errors in process or protocol. If all parties (you, your creditors, and the court) acted on incorrect or incomplete information, the order may be set aside.
  • All your bankruptcy debts, along with the fees and expenses of the proceedings, have been paid in full or secured to the satisfaction of the court.
  • You have had an IVA proposal approved, agreeing to repay a percentage of your debts over five years in return for a full and final settlement.

How Does the Annulment Process Work?

To apply for an annulment, you will need to make an application to the court that originally made the bankruptcy order. You should gather evidence to support your case, for example proof that debts have been paid, or that the original bankruptcy petition contained errors.

The court will consider the application and may hold a hearing. The Official Receiver will be notified and may provide a report to the court. If the court is satisfied, it will make an annulment order.

What Happens After Annulment?

Once annulled, the bankruptcy order is treated as though it was never made. Your entry on the Individual Insolvency Register will be updated accordingly. You will regain control of your assets, property, and bank accounts.

Keep in mind that any debts that were not paid during the bankruptcy will become your responsibility again. You may want to explore alternative debt solutions if you are still struggling financially.

Stopping a Bankruptcy Order from Being Advertised

The Official Receiver is required to advertise the bankruptcy order in The London Gazette, an official publication containing legal notices. If you are seeking an annulment, you can apply for a court order known as a stay of advertisement to prevent this publication while your application is being considered.

Costs and Considerations

Applying for an annulment involves court fees and potentially legal costs. The current fee to apply for bankruptcy in England and Wales is £680 (as of 2026). If you are considering whether bankruptcy is the right route, or if you think an annulment might be appropriate, it is worth seeking professional advice first.

If your total debts are under £50,000, a Debt Relief Order could be a more straightforward option. Since April 2024, there is no fee to apply for a DRO, making it an accessible alternative for those who qualify.

For more information about the bankruptcy process, visit our bankruptcy guides or read about going bankrupt.

This page is for general information purposes only and does not constitute financial advice. If you need advice about your personal circumstances, please seek help from a qualified professional.