J. Annulment of Discharge

Author:Roderick J. Wood
Profession:Faculty of Law. University of Alberta

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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


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