Bankruptcy is a formal insolvency procedure which results in a 'Bankruptcy Order'. Once a bankruptcy order has been passed it can be very costly and difficult to get it reversed, known as an annulment. It is the court that decides who makes the payment; therefore it is not always the debtor who is left to foot the bill. Generally speaking, if an annulment of bankruptcy is warranted it will either be because the bankruptcy should not have been made in the first place, for example if the debt owed to creditors was paid or the correct procedures for bankruptcy were not followed, or an IVA has been agreed.