If you have had to endure a period of bankruptcy then you will most definitely want to know what is involved in removing yourself from and ending bankruptcy.

How do I end my Bankruptcy?

You can make an application through your trustee in bankruptcy to negotiate with your creditors to accept an amount of money to release your from bankruptcy as any time during your bankruptcy before the 3 years expires. This is generally what is referred to a section 73 annulment. This refers to Section 73 of the Bankruptcy Act 1966.

Section 73 Bankruptcy Annulment

Basically, if you want to be successful in achieving a section 73 bankruptcy annulment then it will involve putting together and presenting a proposal to your creditors.

A successful section 73 bankruptcy annulment will mean that you need to satisfy 75% of the financial value of the money owed to creditors and have at least 50% of the creditors agree with the proposal put to them.

If this occurs then your bankruptcy will be annulled and you will be released from bankruptcy.

What happens if a Section 73 Bankruptcy Annulment Fails?

If your proposal to creditors is not agreed to and your section 73 bankruptcy annulment ultimately fails then you will have to remain in bankruptcy until you you are eventually discharged.

A: And if that happens, you’re immediately released from your bankruptcy. And your trustee will distribute the amount to the creditors that they’d fund.