How Long Will Personal Bankruptcy Last

The length of a personal bankruptcy (i.e., the length of time it takes to be discharged or released from bankruptcy) depends on a number of factors: Whether or not you have been in bankruptcy on a prior occasion;Whether or not you are a “high earning” bankrupt as determined by government-set income guidelines (i.e., you are required to pay “surplus income” to the bankruptcy trustee);Whether or not you have tax debt of more than $200,000; andWhether or not you have complied with your duties as a bankrupt and/or there were conduct issues. For someone who has never been bankrupt before, the minimum time that he or she would be in bankruptcy is 9 months. If the individual has “surplus income”, he or she will be in bankruptcy for 21 months. After 9 or 21 months, as the case may be, the individual would be automatically discharged from bankruptcy (i.e., the Trustee signs a discharge certificate and there is no court hearing required). For someone who has been bankrupt once before, the minimum time that he or she would be in bankruptcy is 24 months. If the individual has “surplus income”, he or she will be in bankruptcy for 36 months. After 24 or 36 months, as the case may be, the individual would be automatically discharged from bankruptcy (i.e., the Trustee signs a discharge certificate and there is no court hearing required). In all other cases, a court hearing is required and the length of bankruptcy will depend on the circumstances. For more information about the length of personal bankruptcy, please contact one of our offices. Lana Gilbertson, Trustee in Bankruptcy MNP – Vancouver 604 637 1599