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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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Hi. I was made bankrupt by a petitioning creditor last year

Resolved Question:

Hi. I was made bankrupt by a petitioning creditor last year and I always claimed this was not a valid debt. Earlier this week I had the bankruptcy annulled. I would like to know if I can claim compensation from them for this and if so what sort of things I can claim for
Submitted: 3 years ago.
Category: Law
Expert:  Max Lowry replied 3 years ago.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. On what ground was the bankruptcy annulled? Was it on the ground the bankruptcy order should not have been made in the first place or was it on the ground all debts were paid? If it was the first ground did you get your costs of making the application from the other side?
Customer: replied 3 years ago.

It was on the grounds ought never have been made. No I did not get any costs from the other side and I represented myself in this matter.

Expert:  Max Lowry replied 3 years ago.
Thanks for confirming. There is no automatic right to compensation to cover any losses suffered as a result of a bankruptcy which is subsequently annulled on the ground it ought not to have been made in the first place. Generally, if a person is represented at such a hearing he would be able to recover his legal costs of making the application.
The way the courts look at this is that you should have had your opportunity to defend the statutory demand and then the subsequent bankruptcy petition. The courts say there are processes in place which should provide a debtor (being wrongly pursued) to take steps a each point on the process to challenge such an action and put a stop to it.
I'm afraid in the circumstances there is no right to compensation as a result of being made bankrupt and the bankruptcy is annulled on grounds it ought not to have been made. I know it seems unfair but I'm sorry but this is the position in law.
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