Can you get out of bankruptcy if your financial circumstances change?

If you have already been made bankrupt and your financial circumstances have changed, you may be able to obtain an annulment of your bankruptcy order. An annulment order is an order issued by the court that cancels your bankruptcy order and returns you to your pre-bankruptcy status. If your financial circumstances have changed, you are advised to speak to a solicitor to determine if you can apply for an annulment.

The court will only order an annulment in three circumstances:

- The bankruptcy order should not have been made
- All of your bankruptcy debts and the fees and expenses of the bankruptcy proceedings have either been paid or guaranteed to the court’s satisfaction
- You have reached an Individual Voluntary Agreement (IVA) with your creditors to repay all or part of your debts

If you have received a lump sum of money, for example through inheritance or being awarded damages in a court case, you may be able to pay off all of your outstanding debt. If you have become employed and are able to make monthly repayments to your creditors, you may be able to negotiate an IVA. In order to set up an IVA, you need to engage the help of an insolvency practitioner and obtain an interim order from the court. The insolvency practitioner will present your repayment plan to the court and the creditors and if the creditors accept it, your bankruptcy can be cancelled.

If your bankruptcy order is cancelled, the effect in law is that the bankruptcy order was never made. The disposal of your property will still be valid and cannot be reversed, although your other possessions may be returned to you. In addition, you will be liable for any debts that have not been paid off during your bankruptcy.

For further legal advice on obtaining an annulment, you are advised to speak to a specialist solicitor today. A solicitor will assess your situation and advise you on the best course of action for your circumstances.

Article Source: http://casinoarticles.us

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