Cancelling a bankruptcy (recall)

Cancelling a bankruptcy is known as a ‘recall’.

There’s 2 reasons you can cancel a bankruptcy. If you:

1. pay your debt in full
2. can prove you should not have been made bankrupt

The bankruptcy is not removed from the Register of Insolvencies (ROI) if it’s cancelled. But it will show the bankruptcy has been ‘recalled’.

If you pay your debts in full

To cancel a bankruptcy in this situation you apply to Accountant in Bankruptcy (AiB).

How to apply

You need to download and complete Form 1 on the AiB website. Send your completed form back to AiB.

You need to prove you’ve paid your debts in full or can do so within 8 weeks. The trustee will tell you when the 8 weeks start.

The amount you need to pay includes trustee fees.

You should ask the trustee to confirm this total amount before you apply.

Who you need to tell

You need to let these people know you’re applying and send them a copy of the application:

• the person who made you bankrupt – and anyone who supported it
• the trustee
• the person who owes the debt (if they’re not making the application)

They have 21 days to object to the application.

The trustee will also write to your creditors.

Cost

It costs £100 to apply.

Trustee fees

If you’re unhappy with trustee’s fees you can ask AiB to check them.

If AiB agrees they may change and limit the trustee fees.

AiB charge to check the fees. It’s 17.5% of the final approved fee amount. 

If you’re unhappy with AiB’s decision you can appeal to the Sheriff Court.

AiB will not make a decision on the recall until any appeal is resolved.

If you do not pay the debts in 8 weeks

AiB will refuse the application.

You’ll still be bankrupt.

You will not get a refund of the £100 fee.

Recall application process

When you apply AiB will check:

• you've paid the debt and fees within the 8 weeks
• there’s no objections
• there’s no other reason to refuse the recall

AiB can ask a court to make a decision in difficult cases.

If AiB agree the recall

They’ll send confirmation to:

• you
• the trustee
• the creditors
• Register of Insolvencies
• Register of Inhibitions 

AiB will not remove the bankruptcy from the registers but it will show was ‘recalled’.

If you’ve had a Bankruptcy Restriction Order during the bankruptcy it will stay in place even if it’s recalled. This is unless AiB or a sheriff agrees to cancel them.

Appealing a decision

You can appeal AiB’s decision. This is called a 'review'. You need to ask for a review within 14 days.

Anyone you had to tell about the application can also ask for a review. 

AiB need to respond to a review within 28 days of getting the application.

If you’re still unhappy you can appeal to a court.

Check where to get help with a legal problem.

If you should not have been made bankrupt

You need to apply to the court and prove you should not have been made bankrupt. For example:

• if you were able to pay your debt
• the debt did not exist

How to apply

You apply to the sheriff court. You should get independent legal advice to do this.

Check where to get help with a legal problem.

Cost

You need to check the cost to apply with the court.