How long will I remain bankrupt?

How Long Will I Remain Bankrupt

How Long Will I Remain Bankrupt?

Assuming there are no unusual issues which would require the Trustee to oppose your discharge and require a court hearing, the timing of your discharge depends on a combination of factors. The two most important are whether you have filed a bankruptcy before this one, and your current family income.  The formula set by the Office of the Superintendent of Bankruptcy that determines how much a person has to pay in their bankruptcy is called “Surplus Income”.)  The guidelines below are based on legislative changes made in September, 2009.

First bankruptcy, no Surplus Income: 9 months, assuming no opposition to discharge

First bankruptcy with Surplus Income: 21 months, assuming no opposition to discharge

Second bankruptcy, no Surplus Income: 24 months, assuming no opposition to discharge

Second bankruptcy with Surplus Income: 36 months, assuming no opposition to discharge

In the case of a third bankruptcy, your discharge would automatically be opposed at the 9 month point. Speak to a Trustee about the possible durations of bankruptcy, as the case law relative to the changes in law is still developing.

 

For more information Contact Us or Industry Canada

Read more from our blog