Stop a bankruptcy from proceeding

June 3rd, 2009 by Questions

I signed an application to personal bankruptcy on May 6, 2009 while under duress and not thinking clearly

Can I stop the process by paying the Trustee`s fees and disbursements before it proceeds any further. The first meeting of the creditors has not yet happened.

Posted from: Manitoba


One Response to “Stop a bankruptcy from proceeding”

, A licensed trustee said:

You may apply to the Court to have your bankruptcy annulled, but you must prove to the Court that you were not eligible to file. That basically means that you weren’t insolvent (broke), but can in fact pay off your debts. The best proof of that is to make arrangements to repay the debts in full.

Telling the Court that you made a bad decision or filed under duress (which implies someone forced you to do it) won’t get you very far…

A better approach will be to file a proposal to your creditors. If your creditors accpet the proposal your bankruptcy will be annulled.

Go and speak to your trustee – they can help you sort things out.

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