How long does a bankruptcy take to be discharged?

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In Canada, wrapping up a bankruptcy largely depends on whether it’s your first or second time. For first-timers, expect a 9-month discharge, provided there are no objections and you’ve met all conditions. If surplus income is involved, this extends to 21 months. On a second bankruptcy, it could take 24 months, or 36 months with surplus income. Not all trustees can be trusted. Reach out via phone, text, or live chat if you have any questions.

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Bankruptcy Discharge Question

How long does a bankruptcy take to be discharged? I’m wondering how much time it takes to complete the bankruptcy process and get discharged from my debts.

From: Anonymous Question
Location: Brantford, Ontario (ON)
Category: personal bankruptcy

Bankruptcy Discharge Answer

In Canada, how long it takes to wrap up a bankruptcy situation hinges on a few factors. If it’s your first time, you’re looking at about 9 months for an automatic discharge, as long as nobody raises objections, you’ve attended all the necessary counselling sessions, and there’s no need to make extra income payments. However, if you do have to cough up more due to surplus income, you’re facing a longer spell of 21 months. Now, let’s say this isn’t your first rodeo - your second time around can extend up to 24 months if there’s no surplus income involved. If surplus payments do come into play, then you’re in it for the long haul—up to 36 months.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, the time it takes to be discharged from bankruptcy is typically 9 months for a first-time bankrupt with no surplus income, as outlined in the Bankruptcy and Insolvency Act, RSC 1985, c. B-3, Section 91. If there are surplus income obligations, the discharge could take 21 months. For a second bankruptcy, the discharge process can take 24 months, regardless of surplus income. These timelines can vary based on circumstances such as opposition to the discharge or other specific factors.

From: OSB Helper

Related Questions to How Long Is A Bankruptcy Discharge

Here are the top 5 most frequently asked questions related to the discharge timeline of bankruptcy in Canada, along with brief answers:

1. How long does it take to get an automatic discharge from a first bankruptcy?

• 9 months if no surplus income payments are required, otherwise 21 months.

2. What is the discharge timeline for a second bankruptcy?

• 24 months if no surplus income payments are required, otherwise 36 months.

3. What are the conditions for an automatic discharge from bankruptcy?

• No opposition from creditors, trustee, or OSB; attendance at required financial counselling sessions; and no requirement for surplus income payments or compliance with such payments if required.

4. Do I need to go to court for a bankruptcy discharge?

• No, if you qualify for an automatic discharge; otherwise, a court hearing may be necessary if there is an opposition to your discharge.

5. How does surplus income affect the bankruptcy discharge timeline?

• If surplus income payments are required, the discharge timeline extends to 21 months for a first bankruptcy and 36 months for a second bankruptcy.

If you have a question about debt see our debt questions or ask your own debt related question.

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