You may have been considering Bankruptcy but wondered if it was possible to cancel your bankruptcy after you declared it. Find out three ways that you can end your bankruptcy early.
What Is Bankruptcy Annulment?
The cancellation of a bankruptcy is called an annulment. There are three ways you can officially annul your bankruptcy:
- Pay Off All Debts In Full.
This will include you paying all debts including, all interest on your debts (up to the date of annulment). You would also need to pay your bankruptcy trustee’s fees and expenses. This option might be used if your family or friends wanted to help you get out of bankruptcy or if you won the lottery.
- Arrange A Composition.
If you cannot afford to pay your debts in full, you can make an offer to your creditors whereby they will receive more from your offer compared to if your bankruptcy continued for the full period. The offer must come via your Trustee who will prepare a report on your offer. A proposal under this method must be accepted by the majority of your creditors (75% in value of your creditors and 50% in number of your creditors). If your proposal is successful, your bankruptcy will be annulled. Typically a friend or family of the bankrupt will make the funds available for the composition.
- Prove It In Court.
If you were declared bankrupt and you believe you should not have been and you can prove it in court, then the court can annul your bankruptcy. This may be the result of identify theft or some other mistake.
If your annulment is successful your name will still remain on the National Personal Insolvency Index, but it will state that your bankruptcy was annulled.
If you are looking to take the first step towards financial freedom then get in touch with Australian Bankruptcy Services. We have expert Bankruptcy advisors who can offer you FREE and professional bankruptcy advice tailored to you. Call us now on our toll-free bankruptcy hotline. We are available 24/7 including weekends.