FINANCIAL TROUBLE? WE CAN HELP!
LICENSED INSOLVENCY TRUSTEE SERVICES & DEBT CONSOLIDATION

click to Book a free consultation
or CALL TO BOOK AT 1-888-329-5198

COURT: BANKRUPTCY

Court Attendance to Discharge Bankruptcy

Your trustee normally files all paperwork pertaining to your bankruptcy.

If your file is sent to court because of outstanding issues or duties, you normally must attend and answer any concerns so that they can make a decision regarding your discharge from bankruptcy. Your creditors, the government, or your trustee have the right to oppose your discharge and require your case to be sent to court.

In some cases the court may delay your discharge, and can also require you to pay an amount to your trustee before you are discharged. All duties must be completed in additional to trustees’ fees and any surplus income payments being paid before the court will agree to discharge you from bankruptcy.

Discharge from bankruptcy

A bankruptcy discharge releases you from any legal obligations to repay eligible pre-bankruptcy debts. Some debts are not erased by bankruptcy, so make sure you know your obligations.

The timing of your discharge depends on several circumstances. If there are no issues in your file and no oppositions, the trustee may be able to issue your discharge.  This is called an ‘Automatic Discharge’.

Automatic discharges

  • If this is your first bankruptcy, and you do not have to make surplus income payments, you will be eligible to be discharged in 9 months.
  • If this is your first bankruptcy, and surplus income payments are required, you will be eligible to be discharged in 21 months.
  • If this is your second bankruptcy, and you do not have to make surplus income payments, you will be eligible to be discharged in 24 months.
  • If this is your second bankruptcy and surplus income payments are required, you will be eligible to be discharged in 36 months.
  • If you have been bankrupt on more then 1 previous occasion then you will not be eligible for an automatic discharge. Your discharge will be decided by the court.

Non-automatic discharge

If you don’t qualify for an automatic discharge, your trustee will organize a court hearing. Your trustee will prepare a report which analyzes your financial situation, including the cause of your bankruptcy and your conduct before and during your bankruptcy.

After your hearing the court can grant you an absolute discharge, or may impose further conditions or a suspension before you can be discharged. On rare occasion your discharge can be refused. This is why it is essential that you are aware of all your responsibilities during your bankruptcy, and that you fulfill every obligation.

Back