How Do I Go About Having My Bankruptcy Annulled?

There are three ways that a bankruptcy can be annulled.

Firstly, if you are able to pay your debts in full due to receiving a windfall, then your Licensed Insolvency Trustee can apply to the Court to have the bankruptcy annulled.  However, in our view, it is most likely that the bankruptcy would not be annulled but the LIT would apply to Court to have you discharged early.

In either case, you will have to pay enough of the windfall to the LIT to pay your creditors in full, plus the Trustees fees plus 5% interest from the date of bankruptcy.  If you don’t have enough to do this, then an annulment would not be granted.

Secondly, if your circumstances have changed for the positive during the bankruptcy, then you can file a proposal to your creditors.  Upon approval of the proposal by the Court, the legal effect of an accepted proposal, is to annul the bankruptcy.

Thirdly, the Court can annul a bankruptcy if the assignment or bankruptcy order ought not to have been made.  This would be in rare circumstances and where the bankruptcy has become an abuse of process, the debtor was not insolvent, or a fraud was committed against the creditors.

Contact Boale, Wood & Company Ltd. for more information on proposals, bankruptcy and debt solutions.

Boale, Wood & Company Ltd. has helped thousands of individuals and families overcome debt for more than 14 years.

Call us.  It’s not too late.