J. Annulment of Discharge

Author:Roderick J. Wood
Profession:Faculty of Law. University of Alberta
Pages:303-304
 
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Page 303

A court may annul a discharge if a debtor has failed to perform the obligations imposed on a bankrupt by the BIA or if the debtor has obtained the discharge by fraud.174If a court annuls a discharge, property that was acquired by the debtor after the discharge will vest in the trustee and will be available for distribution to the creditors. An order annulling the discharge does not affect the validity of any transfer, payment, or other thing done prior to the annulment.175Third parties who receive post-discharge transfers of such property are therefore unaffected by the annulment of the discharge. In cases where there has been a considerable passage of time from the date of the discharge to the date that an application for annulment of the discharge is brought, courts may be reluctant to order an annulment of the discharge that would give the creditors the

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ability to satisfy their claims from assets acquired over a lengthy period of time. The court may instead order that the discharge be retroactively suspended for a specified period following the discharge.176

FURTHER READINGS

BAIRD, D., "Discharge, Waiver, and the Behavioral Undercurrents of Debtor-Creditor Law" (2006) 73 U. Chicago L. Rev. 17

BEN-ISHAI, s., "Discharge," in S. Ben-Ishai & A. Duggan, eds., Canadian Bankruptcy and Insolvency Law: Bill C-55, Statute c. 47 and Beyond (Markham, ON: LEXISNEXIS Canada, 2007) c. 14

---, "Government Student Loans, Government Debts and Bankruptcy: A Comparative Study" (2006) 44 Can. Bus. L.J. 211

BUCKWOLD, t., "Post-Bankruptcy Remedies of Secured Creditors: As Good as it Gets" (1999) 31 Can. Bus. L.J. 436

GROSS, k., Failure and Forgiveness (New Haven, CT: Yale University Press, 1997) Part II.

HONSBERGER, J., "Philosophy and Design of Modern Fresh Start Policies: The Evolution of Canada’s Legislative Policy" (1999) 37 Osgoode Hall L.J. 171

HOWARD, m., "A Theory of Discharge in Consumer Bankruptcy" (1987) 48 Ohio St. L.J. 1047

JACKSON, t., The Logic and Limits of Bankruptcy Law (Cambridge, MA: Harvard University Press, 1986) c. 10

TELFER, t., "Access to the Discharge in Canadian Bankruptcy Law and the New Role of Surplus Income: A Historical Perspective" in...

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