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Bankruptcy in Canada is a legal process whereby your debts are wiped out upon your bankruptcy discharge. There are two types of discharges, an automatic discharge and a court ordered discharge.

Provided you are eligible for an automatic discharge there is no requirement to attend Bankruptcy Court. If you were not entitled to an automatic discharge your Trustee must apply to the Bankruptcy Court for a discharge hearing.

You are eligible for an automatic discharge if this is your first or second bankruptcy and :

– you have completed all of your bankruptcy duties and paid all the required fees;

– if no one objects to your discharge.

Completion of your Bankruptcy Duties

Under Section 158 of the Bankruptcy and Insolvency Act, there are a series of duties you must complete in order to receive your bankruptcy discharge. If you do not complete 100% of your duties, your trustee must object to your bankruptcy discharge and if the outstanding duties are significant the Court can leave you in bankruptcy and reinstate your creditors rights to collect from you.

Our advice: Avoid Bankruptcy Court and complete 100% of your duties

Who can Oppose your Bankruptcy Discharge?

– Your Trustee

– Any proven creditor

– The Superintendent of Bankruptcy

Why would any of the above Oppose my Discharge?

– Your trustee must object to your bankruptcy discharge if you have not completed 100% of your duties

– If a creditor believes you have the ability to contibute more to your bankruptcy or they believe you are hiding something.

– If the Superintendent of Bankruptcy believes there was abuse of credit or potential fraud.

Third Time Bankruptcies

Individuals who have filed three or more bankruptcies in Canada are not eligible for an automatic discharge and must have their discharge heard and approved by the Bankruptcy Court. Even if they have completed all there duties.