Part 7 - Action required following annulment of bankruptcy order

July 2008

Part 7 - Action required following annulment of bankruptcy order

6A.95 Notification to creditors of annulment 

The official receiver is required to inform those creditors whom he/she has 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 he/she must also give notice to creditors where an annulment follows the approval of a voluntary arrangement (including an FTVA) [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 he/she has notified creditors of the bankruptcy [Note 7].  The official receiver should liaise with the trustee to ascertain whether he/she has 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 do carry out these functions, the  official receiver may seek to have this undertaking (and the release of his/her obligations under rule 6.212) included in the annulment order.

Where other parties have also been notified of the bankruptcy proceedings, it is also reasonable that they should be notified of the annulment. 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..  For further information contact .  See also Chapter 78.46.


6A.96 Distribution of funds to creditors

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.


6A.97 Notification of annulment to Estate Accounts Services (EAS)

August 2008

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


6A.98 Vacation at Land Registry 

(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. 


6A.99A Gazetting and advertising annulment order

(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.


6A.99B Cancellation of insurance

(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.


6A.99C Returning property to the former bankrupt

(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].


6A.100 Recording annulment on LOIS and Individual Insolvency Register (IIR)

(Amended April 2010)

Where a bankruptcy order is annulled under section 261(2)(a) or (b), section 263D(3), or section 282(1)(b), or where a bankruptcy order is annulled under section 282(1)(a) and the official receiver has received notice of the annulment under rule 6.213(2), all information concerning the bankruptcy must be deleted from the IIR [Note 12][Note 13].  The official receiver should ensure that details of the annulment are entered onto LOIS as soon as possible after the annulment occurs, as the Individual Insolvency Register is updated automatically from information entered onto LOIS. In cases where the petition was presented before 6 April 2010 the (former) bankrupt’s details will automatically cease to appear on the IIR 48 hours after the LOIS entry is made.

Post 6 April 2010 petition cases:

In annulment cases where the petition was presented on or after 6 April 2010 the amended rules provide that information regarding a bankruptcy is only deleted from the IIR once a specified period of time has elapsed since notice of the annulment was received by the official receiver. Where the annulment order is made following the approval of an IVA or FTVA or on ‘payment in full’ [Note 19] [Note 20] [Note 6] [Note 21], the bankruptcy information will only be deleted from the IIR once a period of 3 months has elapsed since the date the official receiver was notified of the order. If the bankruptcy order is annulled on the basis that it ought not to have been made [Note 22] the information is deleted from the IIR when 28 days have elapsed since the date notice of the order was given to the official receiver [Note 23].

LOIS should continue to be updated as soon as possible following receipt of notification of an annulment. The technology which facilitates the interaction between LOIS and the IIR will be amended in accordance with the rule changes for post 6 April 2010 petition cases.


Whilst it is essential to ensure the annulment is recorded as soon as possible on LOIS for the reasons stated, once the annulment has been entered onto LOIS it will not be possible to amend certain screens.  The key areas on LOIS where information needs to be up-to-date before the annulment is entered include screen 85 sign off (PID), screen 3 (updating interested parties), screen 31 (amending references/correcting addresses) and screens 8 and 15 (marked as completed).


6A.100B Stays and the Individual Insolvency Register (IIR)

(June 2010)

Following the implementation of the Insolvency (Amendment) Rules 2010 for  post 6 April 2010 petition cases details of a bankruptcy will remain on the IIR for a period of time even after an annulment order has been made (see paragraph 6A.100). Where a bankrupt obtained a stay of advertisement or a stay of proceedings prior to an annulment hearing details of the bankruptcy order will have been withheld from the IIR. If the bankrupt subsequently obtains an annulment order, the stay will generally cease to have effect and details of the bankruptcy and the annulment will be displayed on the IIR for either 28 days or three months, depending upon the grounds for the annulment. This could cause difficulties for the former bankrupt, particularly in an ’ought not to have be made’ annulment where the stay was intended to protect his / her business or reputation.  

Where a bankrupt seeking an annulment has obtained a stay the official receiver should ensure that the bankrupt is made aware of the provisions regarding disclosure on the IIR. The bankrupt may then wish to seek a further order of the court to prevent disclosure on the IIR after the annulment. In these situations an order specifically referring to the IIR would be preferable as a general stay of advertisement would prevent the official receiver from notifying any third parties (who had been made aware of the proceedings) of the annulment.

Should a bankrupt who obtains an annulment also obtain an order of the court preventing disclosure on the IIR, immediate action must be taken to ensure that details of the bankruptcy and annulment are withheld from the IIR. Any details that do appear on the IIR which are subject to an order of the court preventing their disclosure, could result in a complaint to the Service. LOIS must continue be updated with details of the annulment and the stay must be shown as continuing (CA06). Additionally a call must be logged with the IBM helpdesk (0800 121 4517) providing details of the case and requesting that information regarding the bankruptcy and annulment be prevented from appearing on the IIR permanently. IBM will subsequently forward the request to the appropriate team in CWS who will carry out the action. 


6A.101 Section 122 pension scheme notice to be issued irrespective of annulment

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. 


6A.102 Release as trustee 

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”.


6A.103 Where official receiver is receiver and manager

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.


6A.104  Post annulment destruction of official receiver’s case file

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.



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