Bankruptcy is one of the most stressful things someone can go through.  Although everyone wants to be debt-free, bankruptcy seems like an easy way to do that: it comes with a lot of consequences that make some people annul their bankruptcy before it reaches a judge.

These are the top things to know about this topic.

Why Would Someone Cancel or Annual Their Bankruptcy?

Bankruptcy is a serious decision to go through that can affect your financial health for years to come.  Not only may it mean that you have to pay off a portion of your debt, but you could also easily lose all of your assets that you wouldn’t have lost otherwise.  Sometimes someone may file for bankruptcy before talking to a bankruptcy attorney: and then realize their mistake.  If there’s any other way to settle your financial issues, it’s vital that you consider them first.  

Can My Bankruptcy Be Canceled?

Bankruptcy can be annulled based on three grounds.  

The first is that it shouldn’t have been made.  This means you have to be able to prove your bankruptcy order was made when the debt it was based on didn’t exist or wasn’t enforceable.  This would be like declaring bankruptcy for a debt that hadn’t been touched in seven years and was no longer applicable.  

The second is that the bankruptcy debts and expenses have all been paid, and security has been given to the court’s satisfaction.  This isn’t just for the debt in bankruptcy, but all of the debts you have.  You’ll still have to pay the cost of the Official Receiver and trustee if one has been appointed.

The third is that you’ve entered into an individual voluntary agreement since your bankruptcy order was created.

Any of these will allow you to annul it so that you don’t have to face the consequences that come with bankruptcy.

How Do I Cancel It?

You can cancel or annul your bankruptcy by issuing an application to annul it.  You have to file a witness statement saying the information is correct and pay a fee in court.  

What Debts Can’t Be Discharged?

There are plenty of debts that, unfortunately, can’t be discharged in bankruptcy.  This complicates things for anyone who wants to start with a fresh slate from their bankruptcy.  

These debts are:

• Several kinds of taxes.
• Child support or any alimony.
• Debts you failed to include on your bankruptcy petition unless the creditor knows of your filing.
• Student loans.
• Fines owed to the government.
• Personal injury debts from a drunk driving incident.
• Debts from tax-advantaged retirement plans.
• Condo or co-op housing fee debts.
• Attorney fees for child custody or support.
• Criminal restitution fees.

Although these are major debts that a large portion of the population deals with, unfortunately, they’re yours for as long as you have them.  These don’t fall off of your credit score, and filing for bankruptcy won’t do anything to them.

Everyone Deserves Financial Health

It’s becoming easier and easier to find yourself in debt, and for many, that debt can quickly become overwhelming and life-ruining.  If you need help, bankruptcy can be the answer, but make sure you know all of your options- and the consequences- before you file.