What is a Bankruptcy Discharge

Break Free of Debt Forever

When a person is going through a bankruptcy, a bankruptcy discharge means you are freed from the obligation to repay the debts included in your bankruptcy filing.

Once no longer required to pay the debts listed in your bankruptcy filing. This complete discharge is a major benefit of filing for bankruptcy, providing relief for those who are insolvent under the Bankruptcy and Insolvency Act.

Usually after nine months, the bankrupt will receive a bankruptcy discharge.

Meaning 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.

You can then start rebuilding your financial life. Some debts; however, cannot be discharged. These include:

• alimony and child support payments
• student loans less than 7 years since you were a student
• fine or penalties imposed by a court
• debt arising from fraud or misrepresentation

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

I got into financial issues using credit, after my wages were garnisheed a friend told my about YanchDey.  They were honest and together we decided bankruptcy was the option for me.  The bankruptcy has been discharged, and I am rebuilding my credit. Thanks Again! J.Kerr Oshawa On.

If you do not qualify for an automatic bankruptcy discharge, the trustee will request the court to hear your application for discharge.

Before your discharge hearing, the trustee will prepare a detailed report. This report informs all parties about the circumstances of your bankruptcy, including an analysis of your financial situation, the causes of your bankruptcy, and your performance of bankruptcy-related duties required under the Bankruptcy and Insolvency Act.

It also reviews your conduct before and after the bankruptcy, any convictions under sections 198 to 208 of the Bankruptcy and Insolvency Act, and any other factors that could lead the court to refuse your discharge.

Based on this report, the court can decide to:

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

Call YanchDey today and speak with a trustee about obtaining a bankruptcy discharge to relieve your debts.