How long does bankruptcy last Canada?

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In Canada, your first bankruptcy typically wraps up in 9 months unless you have surplus income, extending it to 21 months. If you’ve been through this before, expect at least 24 months, stretching to 36 with surplus income. Timelines can shift if duties aren’t completed or if contestations arise. Decode your path and explore options. Reach out via phone, text or live chat if you have any questions. Not all trustees can be trusted.

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Canada Bankruptcy Length Question

How long does bankruptcy last Canada? I’m wondering how long bankruptcy typically lasts in Canada. It’s useful to know for financial recovery planning.

From: Anonymous Question
Location: Halifax, Nova Scotia (NS)
Category: personal bankruptcy

Canada Bankruptcy Length Answer

In Canada, if you’re filing for bankruptcy for the first time and without any extra surplus income, you can expect the process to wrap up in about 9 months. However, if you do have surplus income, brace yourself for a longer journey—up to 21 months. If it’s not your first rodeo, it gets a bit more complicated. A second or subsequent bankruptcy could last at least 24 months and potentially up to 36 months if you’re bringing in surplus income. Keep in mind, all these timelines can shift based on completing duties or if there’s someone contesting your discharge.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, the length of a personal bankruptcy typically lasts for a minimum of nine months for a first-time bankrupt, as outlined in the Bankruptcy and Insolvency Act (RSC 1985, c. B-3), Section 2. If the individual has filed for bankruptcy more than once, the duration can extend to a minimum of twenty-four months. The process can also vary based on the debtor’s circumstances, such as whether there are any surplus income requirements.

From: OSB Helper

Related Questions to How Long Bankruptcy Lasts In Canada

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

1. How long does personal bankruptcy last for a first-time bankrupt?

• Typically 9 months, but can extend to 21 months if surplus income payments are required[2][4][5].

2. How long does personal bankruptcy last for a second-time bankrupt?

• Typically 24 months if no surplus income payments are required, but can extend to 36 months if such payments are necessary[2][5].

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

• Must attend required financial counselling sessions, not be required to make surplus income payments (or have made them as required), and no opposition to the discharge from creditors, the trustee, or the OSB[2][4][5].

4. Can the duration of bankruptcy be extended?

• Yes, it can be extended if an opposition to the discharge is filed or if the bankrupt is required to make surplus income payments[1][2][5].

5. Do all bankruptcies require a court hearing for discharge?

• No, those who receive an automatic discharge do not need to attend a court hearing[5].

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

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