S.73 Composition in Bankruptcy

What is a s.73 Composition?

Although bankruptcy has a some advantages such as the discharge of many of the debts which you owed, there are some reason why people would want to have the record of bankruptcy removed from the personal history of their financial affairs. It can be important in terms of securing credit because it is almost certain that you will need to pay exorbitant amounts of interest in order to secure a loan if there is a record of bankruptcy on your credit file. If you have actually been made bankrupt it is possible to have the bankruptcy annulled under what is called a Section 73 Annulment. If you are successful in gaining access to an annulment, you can then have the record of your bankruptcy annulled and it is remover from the national personal insolvency index and your credit file. Under Section 73 of the Bankruptcy Act 1966 a person who is already bankrupt may make an offer of composition or enter into a scheme of arrangement with creditors in full settlement of the debts in the bankruptcy.

When a proposal is made, it must be signed personally by the bankrupt and the trustee will call a meeting of creditors to discuss the proposal and decide if the offer is to be accepted. The bankrupt may be requested to attend and speak to creditors and then the creditors make a decision on if it is to be accepted. If you are the creditor in relation to a bankruptcy and you need some advice about how to proceed in relation to a proposal like this or you are a person who has been made bankrupt and you believe that it may be possible for you to get your bankruptcy annulled and you would like some advice in relation to these matters, please do not hesitate to contact us as we have debt collection lawyers who can assist you with these processes.

Debt Collection Letter Resources