Bankruptcy is not a permanent state. Most Bankruptcies last between 9 and 21 months if you’ve never been through Bankruptcy before. Ultimately, the length of your Bankruptcy will depend on your income level and whether you’ve met all the requirements of your Bankruptcy.
If you’re filing for Bankruptcy for the first time, you’ll be eligible for an automatic discharge 9 months after the date you filed. However, if your income is in excess of federal government-set standards, your Bankruptcy will be extended to 21 months and you will be required to pay a portion of your surplus income to the Licensed Insolvency Trustee for the benefit of your creditors.
After your Bankruptcy is completed and you receive a discharge, a notation will remain on your credit rating for six to seven years if filing for the first time. Once you’re discharged from Bankruptcy, you can begin working on rebuilding your credit rating. Although it takes time, there are several positive behaviours potential creditors will be looking for. Paying off ongoing debts quickly, avoiding bounced cheques, getting and using a secured credit card are all great ways to start rebuilding your credit rating.
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