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 are "discharged from bankruptcy," you are released from your obligations and the bankruptcy process is complete.
Bankruptcy is Roughly a 9 Month Legal Process Initiated 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 is 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 - Undischarged Bankrupt
If you don't following through and obtain your discharge, you are left in an uncertain legal position. It 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 are able to start rebuilding your credit after bankruptcy discharge and re-establishing your financial affairs. Most people want to avoid ending up in financial trouble again, so creating a realistic budget is key to managing your finances.
Common Questions About Bankruptcy Discharge
Contact Us for More Information About Bankruptcy Discharge
If you are struggling to pay your debts and aren’t sure if you need to file for bankruptcy, get help determining 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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