Are you looking forward to file for bankruptcy in Canada? Then you will have a lot of questions in your mind, which need to be answered. Figuring out how long bankruptcy lasts in the country might be the biggest question that you have. Hence, it is important to figure out answers to that question and then move forward.
In Canada, several factors could affect the term of bankruptcy. As a result, the time period that a person has to be in bankruptcy within the country differs from one person to another. As soon as you receive a discharge, your bankruptcy would end. In other words, it is the event where all your debts are being cancelled.
In most of the cases, you will be able to receive the discharge after a period of 9 months. However, it is important to keep in mind that this is the minimum period. It can get extended due to a court order. In addition, you need to be aware about the exact factors, which are in a position to create an impact on the time period that you will have to be in bankruptcy.
- Surplus income
Surplus income can be considered as one of the most determining factors, which are in a position to create an impact on your term of bankruptcy. In case of your income is higher when compared to the limit that is defined by the government, you have to worry about this factor. In such a situation, there is a high possibility for the bankruptcy to be extended for over 9 months.
- First bankruptcy or not
In case if you have not become a victim of bankruptcy before in your life, you will be able to receive the discharge after a period of 9 months. In fact, this is an automatic discharge. But if this is not your first time, there is a possibility for the bankruptcy to be extended. The period of extension will be determined by the registrar or judge of the bankruptcy court.
- Changes in the law
The laws that are related to bankruptcy in Canada were established back in 2005. Several amendments were introduced to these laws along with time. In fact, the laws are being amended on a continuous basis. Possible amendments that can take place in the future are also in a position to create an impact on the term of bankruptcy.
- Opposes in discharge
If you can create an income, which can be used for sustainable living, you will be able to get rid of bankruptcy. In other words, you need to show that you are in a position to take care of you as well as your dependents. Then you will be granted with the discharge. However, there are instances where people fail to prove this. In such instances, their discharges will be opposed. As a result, you will have to remain in bankruptcy for an additional period of time.
- Completion of all duties
There are few specific duties, which you will need to complete while you are in bankruptcy. Failing to complete these duties in a timely manner can delay your bankruptcy. Due to this reason, you are strongly encouraged to pay special attention towards the completion of all your duties.
It is better if you can deep dive and have a better understanding about the duties that you will need to fulfill during bankruptcy. Then you will be able to fulfill those duties and make sure that you are granted with the much needed relief from bankruptcy.
While you are in bankruptcy, you will be asked to go ahead and attend a series of meetings that are organized by the creditors. In these meetings, you have the opportunity to go ahead and ask all questions that you have in your mind about bankruptcy from the creditors. As a result, you will be able to get rid of all the doubts that you had in your mind as well. Even if you don’t ask any such questions, it is important to attend these meetings. They are in a position to create a tremendous impact on your duration of bankruptcy. In other words, you should not miss out any meeting.
Your income tax is also in a position to help you with reducing the period of bankruptcy. You should give all the T-4 slips to your trustee along with other essential information. Then the trustee will be able to complete all the outstanding tax returns from the date that you filed for bankruptcy. You should also keep in mind that all the income tax debt would get accumulated within bankruptcy. Therefore, you will need to make the tax payments separately. If you make these payments, you will be able to reduce your period of bankruptcy in an efficient manner.
During the time of bankruptcy, monthly reporting is extremely important as well. At the end of every month, you will need to report all your living expenses and the monthly household income. In case if there are any changes in the situation of the trustee, you will have to include those details in the report as well. This report must be submitted along with the copies of the pay stubs. All the forms that you need will be provided by the trustee. It is up to you to fill up these forms by including accurate information.
If you want to make yourself eligible for an automatic discharge after a period of 9 months, you should go ahead and take part in 2 different credit counselling sessions as well. It is possible for you to go for one on one counseling sessions or group sessions. The very first session out of these two is held within the 60 days and the other will take place within 210 days. If you attend to these sessions, you will be able to make yourself eligible for an automatic eligibility. Any help for financial problems contact gtacredit.com or call 416 650 1100