Section 61 — Bankruptcy and Insolvency Act: Annulment of bankruptcy

The approval by the court of a proposal made after bankruptcy operates to annul the bankruptcy and to revest in the debtor, or in such other person as the court may approve, all the right, title and interest of the trustee in the property of the debtor, unless the terms of the proposal otherwise provide. Where the court refuses to approve a proposal in respect of an insolvent person a copy of which has been filed under section 62, the insolvent person is deemed to have thereupon made an assignment; the trustee shall, without delay, file with the official receiver, in the prescribed form, a report of the deemed assignment; the official receiver shall issue a certificate of assignment, in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed under section 49; and the trustee shall, within five days after the day the certificate mentioned in paragraph (b.1) is issued, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another licensed trustee in lieu of that trustee. [Repealed, 1992, c. 27, s. 25] No costs incurred by a debtor on or incidental to an application to approve a proposal, other than the costs incurred by the trustee, shall be allowed out of the estate of the debtor if the court refuses to approve the proposal.