Open petition: Review insolvency law to prevent repeated appeals

Created by Paul Ford
Closes on 9 June 2026

Under current law, a bankrupt individual can file multiple appeals or annulment applications, even after earlier ones are dismissed. Each new filing automatically stops trustees from paying creditors until the court process ends.

We believe this loophole allows debtors to delay payments to creditors for years, which in turn can cause hardship for creditors, and can delay the courts with repeat claims. A review could consider mechanisms to protect creditors, reduce abuse of process, and ensure trustees can make distributions promptly while still safeguarding a debtor’s right to one fair hearing. We believe creditors deserve timely justice. A review of the current law could find ways to stop bankrupt individuals intentionally using the appeals process to delay payments and restore confidence in the fairness of the insolvency system.

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