|
Bankruptcy
is an option that often has to be considered when an individual
cannot pay his/her debts, as they fall due. Although bankruptcy has
a bad stigma and is publicly advertised, it should always be
considered when dealing with individual insolvency cases.
In cases of individuals with no or insignificant assets, is not a
bad option, it should however be avoided at all costs if one's
assets are sufficient to defray one's liabilities or enable a
compromised settlement to be reached. |
The effects of bankruptcy
Once you have been made bankrupt all assets belonging to you come
under the control of the Trustee, including your home. If you own the property with someone else they may be able to make
an offer to buy out your interest in the property from the Official
Receiver or the Trustee.
The other main disadvantages of bankruptcy are the restrictions
placed upon you and the stigma always associated with bankruptcy.
Can my bankruptcy be reversed or cancelled?
Yes, you can apply for a reversal or annulment at any time if:
• The bankruptcy order should not have been made, for example
because the proper steps involved in obtaining the order were not
followed; or
• All your bankruptcy debts and the fees and expenses of the
bankruptcy proceedings have been either paid in full or guaranteed
to the satisfaction of the court; or
• You have reached an agreement with your creditors to repay all or
part of your debts.
What is an annulment of a bankruptcy, when and, how do I apply and
what is the effect?
This is a procedure which cancels your bankruptcy; annulment is a
court initiated process and can only be achieved if, all your debts
are paid or secured to your creditors satisfaction and the Official
Receiver or your Trustee makes an appropriate report to the court.
You can apply for an annulment at any time if any one of the
conditions described above applies. Once annulment is obtained you
will revert to your pre-bankruptcy status.
What is discharge from bankruptcy?
It is a process which frees you from the restrictions of bankruptcy
and releases you from the debts you owed at the date the bankruptcy
order was made against you.
Can I propose a Scheme of Arrangement to my creditors after a
bankruptcy order?
Yes you can, we, at CRI can guide you through all statutory
proceedures necessary to obtain an annulment or discharge of your
bankruptcy or assist you in putting together a scheme of arrangement
to your creditors.
|
