Cancellation of Bankruptcy
Bankruptcy can be cancelled or annulled as if it never occurred. While this is not an easy thing to do it can be done by one of the following methods:
Full repayment of debts
If you come into sufficient money to fully pay all of the debts plus the costs the bankruptcy, you can request an annulment. If you are able to pay off your debts you’re no longer insolvent so there is no need for you to be bankrupt. Sometimes when a bankruptcy trustee attempts to sell your property and collects enough to repay all your debts your bankruptcy is annulled before proceeding.
A settlement proposal to creditors
Anytime throughout your bankruptcy you are able to make a proposal to your creditors to end your Bankruptcy. This is done using a “Section 73 Proposal’ and is seen as an alternative to bankruptcy.
The key condition of the section 73 is that it needs to offer a better deal for creditors than they would get under bankruptcy. The decision of whether or not to accept your proposal still rests with your creditors. If they agree then the bankruptcy is annulled.
A Court Application
You may choose to apply to the Courts to have your bankruptcy annulled. The only reason a court would consider cancelling a bankruptcy is if the person should have never been made bankrupt in the first place.
What happens if my bankruptcy is annulled?
The fact of your annulment is recorded on the National Personal Insolvency Index (NPII) database and is available to the public. Your name will remain recorded on the NPII indefinitely.
You should seek to contact Veda Advantage and other credit reporting agencies to ensure that your credit record is updated to reflect the annulment. Assets that remain in control of your bankruptcy trustee should be returned to you if they are no longer needed to repay your debts.