Can my bankruptcy be cancelled or annulled?

Cancel bankruptcy: a user on Quora asks: Can my bankruptcy declaration be cancelled or annulled?

Victor Fong, Licensed Insolvency Trustee in Toronto, Canada replies:

In Canada, a personal bankruptcy generally cannot be annulled unless:

• a debtor who is applying to court for an annulment of the bankruptcy can prove to the court that the bankruptcy should not have been filed in the first place (i.e., the debtor was not insolvent and had the ability to pay his creditors). If successful, the court may grant the annulment; or

 

• the debtor who is in bankruptcy files a proposal under the Bankruptcy & Insolvency Act (either a consumer proposal or if his non-mortgage debt is more than $250,000, a commercial proposal – also known as a Division I proposal). Upon the acceptance of the proposal by the debtor’s creditors and the bankruptcy court, the bankruptcy will be annulled. However, if the debtor defaults on the payment of the proposal, he will find himself in bankruptcy again.