How Long Does Bankruptcy Last In Ontario?

| Category: Bankruptcy in Ontario | Bankruptcy FAQ
Category: Bankruptcy in Ontario | Bankruptcy FAQ | (4) comments

Several factors affect how long you will be bankrupt for in Ontario. The top four considerations:

  1. how long bankruptcy lastHow many times you have been bankrupt.
  2. Whether or not  you have surplus income.
  3. Whehter or not you completed your duties?
  4. If your trustee or any creditor objects to your discharge.

The soonest you can complete a bankruptcy is in nine months. This can happen if this is your first bankruptcy, you are not required to pay surplus income, you complete all of your duties while bankrupt, and if your trustee or your creditors to do not object to your discharge.

However, if you have significant surplus income, your bankruptcy will be extended for an additional year, meaning your bankruptcy will last 21 months.

If this is your second bankruptcy, you are automatically bankrupt for 24 months, and if you have surplus income an additional year is added, so you would be bankrupt for 36 months (3 years).

The above scenarios assume you qualify for an automatic discharge. If this is your third bankruptcy, or if your trustee or any creditor objects to your discharge, you are not eligible for an automatic discharge, and your trustee will apply to the court to approve, or make conditions for, your discharge. This is rare. Most people receive an automatic discharge in nine, 24 or 36 months depending upon the conditions above. A creditor or your trustee will object to your automatic discharge if:

  • you did not complete your duties;
  • your actions were considered inappropriate according to the Bankruptcy and Insolvency Act;
  • this is your third bankruptcy.

Bankruptcy rules are complex. We suggest you contact a licensed Ontario bankruptcy trustee who will meet with you to explain the rules for filing bankruptcy, discuss how long you will be bankrupt for in Ontario, and help you decide whether or not a bankruptcy is the correct solution for your financial situation.

Contact an Ontario bankruptcy trustee for a free, initial consultation.

Leave A Comment

  1. Susan D.

    Hello its been 6 years since I filed bankruptcy in ontario and it still has not perged off with equifax and Trans Union. We have been talking to both of these about information on our file and writen 23 time to both and they still wont take it off what can we do.

  2. J. Douglas Hoyes

    Hi Susan. Equifax purges a bankruptcy six years after your date of discharge (not the date of filing) for a first bankruptcy. If it is not six years from your date of discharge, or if this is not your second bankruptcy, it will not be purged.

    TransUnion may keep the bankruptcy on your credit report for seven years from the date of discharge before it is automatically purged.

    In your case it is likely that the full time period from your date of discharge has not yet expired. I suggest that you contact your trustee to confirm the exact date of discharge, and then confirm that the time periods as set out above have expired. With that information you can then contact the credit reporting agencies again.

  3. Robert M.

    12 years ago I filed for personal bankruptcy and the company I filed with continues to take my income tax refund. I had followed all the rules and paid back what was in the original order.

    What can I do. The company I dealt with says they don’t even have a file on me however my refund from CRA goes directly to them

    Thank you


    1. J. Douglas Hoyes

      I have never heard of a bankrupt losing their tax refund for 12 years. If the trustee no longer has a file on you, where is the money going? I would suggest you ask for a statement from CRA showing where your refund has gone.

      You could also pay $8 and so an insolvency search on yourself on the government’s website to confirm that you are actually discharged. If you are, you should contact the Office of the Superintendent of Bankruptcy and CRA to confirm that you are discharged, and request that they send you your refunds. If you are not discharged, your trustee will need to advise you on what needs to be done to obtain your discharge.


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