Part 7 - Action required following annulment of bankruptcy order
An official receiver is required to inform those creditors whom they have already notified of the bankruptcy order that the order has been annulled [Note 1][Note 2][Note 3][Note 4] using form NABO. This applies whether or not the official receiver has acted as trustee and they must also give notice to creditors where an annulment follows the approval of a voluntary arrangement [Note 5][Note 6].
Special care should be exercised in cases where an insolvency practitioner is trustee. It must be noted that under the rules, even if an insolvency practitioner trustee is in office at the time of the annulment, the obligation to notify creditors rests with the official receiver (where they have notified creditors of the bankruptcy [Note 7]. The official receiver should liaise with the trustee to ascertain whether they have already notified creditors and/or enquire whether the insolvency practitioner trustee would be prepared to undertake the official receiver’s requirement to give notice under rule 6.212, before undertaking this task himself/herself. If the trustee is prepared to carry out these functions, the official receiver may seek to have an appropriate undertaking (and the release of their obligations under rule 6.212) included in the annulment order.
Where parties other than creditors have been notified of the bankruptcy proceedings, it is reasonable that they should be notified of the annulment and the official receiver should act accordingly, following the guidance in paragraph 6A.95.
Where a bankrupt is VAT registered, notification of the annulment application/order and HMRC form VAT 167 (deregistration questionnaire) must be sent to H M Revenue & Customs at HMRC DMB (Debt Management and Banking), ICHU, Room BP2302,Benton Park View, Longbenton, Newcastle Upon Tyne, NE98 1ZZ(email@example.com).
Where the bankrupt is a German national or is known to have worked in Germany, notice of the annulment order [NABO] should be issued by e-mail (firstname.lastname@example.org) to the German state pension administrator, the Deutsche Rentenversicherung Bund (DRV).
In annulment cases where the court orders the official receiver to distribute funds to creditors , the official receiver must ensure that this is done within 28 days of the order, unless there is a good reason for the delay. The 28 days includes the time it takes for the local office to transfer the case to the RTLU. It is not acceptable for several months to elapse with no payment to creditors.
In any case, once it becomes apparent that the case should be referred to the RTLU for distribution the official receiver should aim to complete the transfer to RTLU within 14 days.
Following the upgrade of the LOLA menu function glm81 in July 2008, to facilitate the closure of the LOLA account or write off the debit balance, the official receiver is no longer required to send details of annulment cases to EAS on the ‘Cases For Closure’ spreadsheet.
LOLA menu function glm 81 has been upgraded to simplify the closure process and improve data integrity. The DBWO <F13> ring menu option in the case maintenance screen is now only available for release applied for or re-opened cases, not for open cases.
Please note - release applied for must be recorded on LOIS the day before function glm 81 is updated.
After inputting the amount of the debit balance write off (or ‘0’ if a nil balance closing) pressing UPDATE <F1> will issue the prompt “Debit balance about to be written-off. Do you wish to proceed?(y/n)”. A yes reply will automatically process the case to Closed status on LOLA and generate the requested debit balance write off transactions automatically.
This function will also close those cases where a further debit balance is entered to be written off, all cases will be closed automatically when the further debit balance is entered on glm 81. Queries regarding the new release process are dealt with by the Business Support team at email@example.com
(Amended April 2010)
The court order of annulment should include a provision permitting the vacation of the registration of the bankruptcy petition and of the bankruptcy order at the Land Charges Department [Note 8]. In addition, entries may have been made in the proprietorship register maintained by the Land Registry. Where an annulment application is successful but the court does not dismiss the petition which is to be relisted for hearing, no action should be taken to vacate the registration of the bankruptcy petition pending the re-hearing of the petition. The annulment order should therefore only provide for the vacation of the bankruptcy order at the Land Charges Department. It is a matter for the former bankrupt to seek the vacation of such entries and the official receiver should not involve himself/herself in this activity.
(Amended February 2014)
Where the former bankrupt requires notice of the annulment order to be gazetted and, where appropriate, advertised in the same manner as the bankruptcy order was advertised, he/she should, within 28 days of the date of the order, apply in writing to the official receiver (although technically the application is to the Secretary of State [Note 9][Note 10][Note 11], see Chapter 5 – Publication of insolvency information).
Post 6 April 2010 petition cases:
In cases where the bankruptcy petition was presented after 6 April 2010, the amended rules specify standard contents for all gazette notices or other advertisements [insolvency Rules 1986 as amended by IAR12A.33 – 12A.41]. Where the bankrupt requires notice to be given of an annulment order, the gazette notice or advertisement must also contain further specified contents [Note 17][Note 18]. The forms required for requesting publication of such a notice are available within the Case Help Manual part Publication of Insolvency Information. These forms should be completed fully so as to comply with the requirements of the Rules.
(Amended February 2014)
After the making of the annulment order the official receiver should cancel the insurance from the date of the annulment order (for further details see paragraph 49.27B). Where possible the cancellation of the insurance should be completed within 5 days of the annulment order.
(Amended February 2014)
The official receiver should ensure that all assets, including keys to freehold or rented property and motor vehicles are returned to the former bankrupt as soon as possible. The return of the former bankrupt’s assets avoids any potential liability for loss arising from the cancellation of the official receiver’s insurance (see paragraph 6A.99 B). The official receiver should ensure that any all appointments for the purpose of handing back assets or keys are kept [Note 18a].
See paragraph 26.22.
In cases where the bankrupt operated a pension scheme for his/her employees, see Chapter 6.59 regarding the requirement to send a Pension Scheme Notice where the official receiver's appointment as trustee comes to an end before he/she is able to form a view as to whether support for the pension scheme will continue.
The court will include in its order of annulment provisions relating to the release of any trustee appointed. Where the official receiver is trustee, he should ask the court to order that he be granted his release as trustee [Note 14]. See also chapter 37. The official receiver should also send a copy of the final accounts to the court and Corporate Governance Section [Note 15][Note 16]. The template for the final accounts is available on the shared drive in a file called “Final Account”.
Where no notice has been issued under sections 293 or 295, i.e. where the official receiver is receiver and manager only, there are no release provisions applicable.
Following the successful annulment of a bankruptcy order, the destruction of the official receiver’s case file should be treated in the same way as other case files held by the official receiver, in accordance with the destruction policy set out at Chapter 10.89.
The file should be destroyed five years after the date of the bankruptcy order or two years after the date the official receiver is released as trustee in bankruptcy by the order of annulment (whichever is the later date) unless one of the exceptions set out in Chapter 10.89 apply.