Learn how bankruptcy discharge works in Canada.
What Does Bankruptcy “Discharge” Mean in Canada?
Bankruptcy discharge is simply defined as the last step of bankruptcy in Canada. Once you have completed all of the requirements, your bankruptcy trustee will ask the Court to discharge you from your bankruptcy. When you’re “discharged from bankruptcy,” you’re released from your obligations and the bankruptcy process is complete.
Bankruptcy is a Roughly 9 Month Legal Process to Eliminate Debt
When someone signs the paperwork to go bankrupt, it means that they have “assigned themselves into bankruptcy.”
Filing or claiming bankruptcy isn’t a one-day event. It’s the start of a legal process to eliminate debt. The process will take at least 9 months to complete.
What Happens if You Aren’t Discharged from Bankruptcy
If you don’t follow through and obtain your discharge, you’re left in an uncertain legal position.
This puts your financial affairs on hold until your situation is sorted out. You many need to hire a new trustee or even a bankruptcy lawyer, and it can become a lengthy and costly process.
There are reasons why a discharge may be delayed, but becoming an “undischarged bankrupt” is something you want to avoid.
Speak with your trustee if there’s a chance you won’t be able to fulfill all of the requirements.
Life After Bankruptcy
Rebuilding Credit After You’re Discharged
Once the bankruptcy process is complete, you’re able to start rebuilding your credit after bankruptcy discharge.
You’ll also be able to start or put back into motion your financial plans now that your bankruptcy has been discharged. However, make sure not to repeat any habits or actions that made you bankrupt in the first place.
Most people want to avoid ending up in financial trouble again, so creating a realistic budget is key to managing your finances. Applying for credit to help rebuild your credit is fine, but make sure that you use whatever you get responsibly. Always make your payments on time and keep track of your costs so that you’re not spending more money than you earn.
Common Questions About Bankruptcy Discharge
Contact Us for More Information About Bankruptcy Discharge
If you’re struggling to pay your debts and aren’t sure if you need to file for bankruptcy, get help figuring out your options. We can also go into more detail about bankruptcy definitions and give you more information about bankruptcy discharge. One of our credit counsellors will answer your questions and provide you with guidance and information so that you can make an informed decision. Contact us today by phone at 1-888-527-8999, by email or chat with us online now.
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