Once your bankruptcy process has begun, it is still possible to get it cancelled (or annulled). However, you are only able to annul the bankruptcy under very specific conditions, but it would mean you are legally in exactly the same position as you were pre-bankruptcy. In other words, it’s as if the bankruptcy order never happened.

An order of annulment can only be made by the court, but you can apply for an annulment at any time under the following conditions:

• If the order should not have been made in the first place. According to the government this would be the case if the correct proceedings were not followed when placing the order or if the debt had already been settled before the bankruptcy hearing.

• You have an arranged an Individual Voluntary Agreement with your creditors. This is an alternative to bankruptcy which lets you pay off some of your debt – the amount and timeframe of which is agreed between you and your creditors.

• All the debts, fees and expenses of the bankruptcy proceedings have been paid to the satisfaction of the Court.

The process of applying for an annulment varies slightly depending on the reasons for the annulment.

If the bankruptcy order should not have been made, then you should get an application form from the Court. You will have to make an affidavit or a witness statement, verified by a statement of truth, which says why the order should not have been made, and send the form and the affidavit or witness statement to the Court. The Court should then set a date to hear your application. Make sure you inform the Official Receiver, the person who petitioned for your bankruptcy, and the trustee, of where and when the hearing will take place. Also send them copies of your application form and affidavit or witness statement.

After the hearing, the fees and expenses of the bankruptcy process (including petitioning creditor's legal costs and Court fees, the Official Receiver's costs, any appointed Trustee's costs and statutory interest) will be paid by whomever the Court decides.

If the debts, fees and expenses have already been paid, the process is similar, but the affidavit or witness statement verified by a statement of truth will set out all your assets and debts when the bankruptcy order was made, and details of how the debts have been paid off.  A hearing will once again be set, and the Official Receiver or the trustee will send confirmation to the Court that your debs have been paid.

Although the annulment will cancel all aspects of your bankruptcy, it’s not all good news regarding your assets. Any assets that have already been disposed of by the Official Receiver or trustee cannot be claimed back. However, any other assets that were included as an asset of your bankruptcy will be returned.

You are now free of any restrictions or conditions placed on you by the bankruptcy, and in the eyes of the Court you are in the same position as you were before the bankruptcy order was made. Now it’s up to you to start again in whichever way you’ve chosen to. Good luck.