How long does bankruptcy last in Canada?
A first-time bankrupt with no surplus income is eligible for automatic discharge after 9 months. With surplus income, it extends to 21 months. A second bankruptcy takes 24 months (no surplus) or 36 months (with surplus).
What is an automatic discharge?
If you complete all your duties (attend two counseling sessions, file monthly income reports, and pay any surplus income) and no one opposes, a first or second bankruptcy is discharged automatically at the applicable period, without a court hearing.
What can delay my discharge from bankruptcy?
Missing counseling sessions, failing to submit income and expense reports, unpaid surplus income, or an opposition to discharge filed by a creditor, the trustee, or the OSB. Any of these can require a court hearing and delay your discharge.
Is a third bankruptcy treated differently?
Yes. There is no automatic discharge for a third or subsequent bankruptcy. The court holds a hearing and may impose conditions, such as additional payments, before granting a discharge.