Getting out of bankruptcy

October 2nd, 2005 by Questions

What happens if someone has claimed bankruptcy and not followed through with obligations. Is there any way out?

Questions

2 Responses to “Getting out of bankruptcy”



, Barton Goth, GCO Inc. Bankruptcy Trustees said:

As a result of your neglect to comply with your duties the first time, there will most likely be additional costs / requirements that will be imposed, but this varies from jurisdiction. At this point, you need to contact your trustee to see what duties you have not completed, and then make arrangements to complete your duties. Then your trustee will make an application to court for your discharge and the court will determine if anything additionally has to be done.



, A licensed trustee said:

Your question might mean one of two things. I will try and answer both – just in case.

If you are asking if there is anyway out of a bankruptcy once you’ve started the process the answer is “yes”.

You may get out of bankruptcy by either:
(1) completing the procedure as required
(2) filing a proposal to your creditors – once the proposal is accepted your bankrutpcy will be annulled
(3) repay the debts in full and then apply to the Court to have the bankruptcy annulled
(4) apply to Court to have the bankruptcy annulled on the grounds that you were not eligible to file in the first place (ie you were not insolvent).

If you are asking how you go about getting out of bankruptcy because your trustee closed your file when you failed to adequately perform your duties then the answer is more problematic.

Legally, you have the same options that I listed above. Realistically, most people in this situation cannot afford options 2 or 3 and therefore option 4 doesn’t apply either.

What that leaves you with is completing your duties as required. In order to do that you should contact the trustee that handled you file and ask them to set out what is required in order to obtain your discharge (ie complete your bankruptcy). At the very least you will be required to complete whatever duties you originally skipped plus your trustee may assses you additional duties and costs due to your conduct.

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