Annulment of bankruptcy is a legal order that has the authority to nullify a bankruptcy order. The annulment of bankruptcy orders can only be issued by a court or a similar judicial entity.
There are several legal processes involved in the application of annulments of bankruptcy.
Annulment of Bankruptcy Information
An annulment of bankruptcy is a legal dictum that cancels out the bankruptcy order issued against an individual by a judicial body. However, only a judicial body such as a court, for example, has the authority to issue an annulment order. An important part of the annulment of bankruptcy is an appointment with a relevant authoritity, such as the Official Receiver.
Application for Annulment of Bankruptcy
An individual may apply for an annulment of bankruptcy, subject to certain conditions. For instance, an individual voluntary arrangement has taken place between the deptor and his creditors or if all debts have been paid off.
Methods of Application for Annulment of Bankruptcy
There are legal formalities that need to be completed for the application for annulment of bankruptcy. For example, the bankrupt individual needs to take application forms from the relevant court, make affidavits, and send these documents to the court.
The methods of application for annulment of bankruptcy depend on specific circumstances. For example, the method of application in the case of full payment of debts would differ from the application used if an individual voluntary agreement had been reached.
Effects of Annulment of Bankruptcy
The most basic effect of annulment of bankruptcy is that the individual returns to pre-bankruptcy status. However, the properties that have been taken by the bankruptcy officials are not returned. Additionally, the individual has to pay off all debts that had not been paid during the bankrupcy period.
Last Updated on : 10th July 2013