Bankruptcy Annulment

| Category: Bankruptcy in Ontario
Category: Bankruptcy in Ontario

Question: What are the criteria that might have to be satisfied for a consumer to have the bankruptcy order annulled?

bankruptcy annulmentIf a bankruptcy is annulled then it is as if you never filed.

The most common reason for annulling a bankruptcy is that all debts have been paid in full. If, for example, the bankrupt person inherits a lot of money while bankrupt and is therefore able to repay the debts in full, the court will annul the bankruptcy.

The filing of a consumer proposal which is then accepted by the creditors will also result in the bankruptcy being annulled. This sort of conversion from a bankruptcy to a consumer proposal is not uncommon. Financial circumstances can change, for example you may find a new job which pays more than your previous position which may trigger surplus income.

It is highly unusual that a bankruptcy is outright annulled other than through the filing of a consumer proposal. If you require an annulment you should speak to your bankruptcy trustee.