How Long Will I be Bankrupt?

If you are a first-time bankrupt, you are eligible for an automatic discharge from bankruptcy after 9 months if you have no obligation to make Surplus Income payments and after 21 months if you have to make Surplus Income payments.

If you have been bankrupt once before, you are eligible for an automatic discharge from after 24 months if you have no obligation to make Surplus Income payments and after 36 months if you have to make Surplus Income payments.

For further information on Surplus Income payments, please see our Surplus Income blog post.

The Trustee, the Superintendent of Bankruptcy or a creditor can oppose your discharge from bankruptcy and, if this occurs, there will be a Court hearing to consider the reasons for the opposition and determine what has to happen before you get discharged.  Most oppositions are by the Trustee and the most common reasons for opposition are as a result of the bankrupt’s failure to:

  • make required payments;
  • provide the Trustee with monthly income and expense reports;
  • complete the 2 mandatory counselling sessions; and
  • provide the Trustee with requested documentation or information.

Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses.  We offer free consultations to review your personal financial situation and practical debt resolution options.  Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, FrederictonCharlottetown or Dartmouth - it's your choice.