Annulment of bankruptcy is the process by which your bankruptcy can be cancelled, ending your period of bankruptcy. If your bankruptcy is annulled, your name will remain on the National Personal Insolvency Index, but your bankruptcy will be listed as ‘annulled’.

There are three ways to go about having your bankruptcy annulled:

Payment of all debts

Under s 153A of the Bankruptcy Act 1966, the trustee of your bankruptcy may grant an annulment if satisfied you have paid all your debts in full, including interest payable, administration costs, and remuneration expenses of the trustee. To work out the amount payable to discharge you from bankruptcy, contact your appointed trustee.

Court order

Under s 153B of the Act, bankruptcy may be annulled by the court in limited circumstances, where it can be proven that the bankruptcy order ought not to have been made. The types of situations this would be considered in is where the debt was not owed or had already been paid, non-service of the creditor’s petition, or stolen identity.

Arrange a Composition with creditors

Under s 73 and 74 of the Act, you may agree to an arrangement with your creditors to repay some portion of your debts less than the full amount. A proposal should be lodged to your trustee, who will consider the proposal before presenting it to creditors for their consideration. A Composition, once accepted by creditors, is legally enforceable. It is important to ensure the arrangement is realistic as failing to comply with the terms will be contempt of the court.


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