GET THE FACTS ABOUT BANKRUPTCY DISCHARGE IN THE GTA

At Yanch Dey & Associates Ltd., our trustees are here to help you get through the bankruptcy process. That includes helping you obtain a discharge from your debts. Once you are discharged from bankruptcy, you will be released from the legal obligation to repay the debts you had from the date you filed for bankruptcy and you can then start rebuilding your financial life. Some debts; however, cannot be discharged. These include:

  • Alimony and child support payments
  • Student loans provided it’s been less than seven years since you were a student
  • Fine or penalty imposed by the court
  • Debt arising from fraud or misrepresentation

AUTOMATIC DISCHARGE

If this is your first bankruptcy and you are not required to make surplus income payments, you will be eligible for an automatic discharge from bankruptcy in nine months. If you have surplus income, your bankruptcy discharge will be extended to twenty-one months and you will be required to make payments from your surplus income throughout that time period.

Your discharge from bankruptcy will happen automatically if:

  • The trustee, a creditor or the Office of the Superintendent of Bankruptcy does not oppose the discharge
  • You have attended the mandatory financial counselling sessions
  • This is your first or second bankruptcy

NON-AUTOMATIC DISCHARGE

If you do not qualify for an automatic discharge, the trustee will ask the court to hear your application for discharge. Prior to your discharge hearing, the trustee will prepare a report. The report is used to inform all parties of the circumstances surrounding your bankruptcy. The report describes your financial situation and analyzes:

  • Your financial affairs
  • The causes of your bankruptcy
  • How you performed the bankruptcy-related duties you are required to carry out under the Bankruptcy and Insolvency Act
  • Your conduct before and after the bankruptcy
  • Whether you were convicted of any offence under sections 198 to 208 of the Bankruptcy and Insolvency Act
  • Any other facts that could justify the court refusing your discharge

The court can then decide to:

  • Grant an absolute discharge
  • Grant a conditional discharge
  • Suspend (delay) the discharge
  • Refuse the discharge

Call Yanch Dey & Associates Ltd. today and speak with a trustee about discharging your debts through a bankruptcy.

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Contact Us

Have a bankruptcy, consumer proposal or financial issue you'd like to discuss? Send us and email and we respond within four (4) hours.