How Long Will I Be Bankrupt in Ontario? - Bankruptcy Trustee Ontario
How Long Will My Bankruptcy Last in Ontario?
Bankruptcy is a method of relief to debtors who are struggling to repay long term debt.
However, in many cases, the process of insolvency can have long term effects.
We are here to explain everything you need to know about the lasting effects of bankruptcy.
We’ll explore personal bankruptcy in Ontario and how it can impact your financial future.
How Long Will I Be Bankrupt in Ontario?
Bankruptcy is not a casual solution to money problems.
Although it can offer significant relief from financial strain, it should not be treated lightly.
Generally, most individuals who declare themselves bankrupt in Ontario are eligible for discharge following a minimum period of nine months.
However, each circumstance is different, and this will be taken into consideration by your Trustee and the court.
Your bankruptcy period may exceed the minimum period of nine months if your court has decided that your circumstances require an extension.
What Affects My Bankruptcy Period?
The court will assess multiple factors that may cause an extension of your bankruptcy term.
This can include things such as additional income, completion of your allocated duties as a bankrupt and possible changes in the law.
Due to the 2005 reforms to Ontario’s bankruptcy laws, some cases of bankruptcy were extended.
Your Trustee will advise you of the expected length of your bankruptcy term following your initial discussion and will be at your disposal to advise you on what you can do to keep your term as short as possible.
In some cases, your bankruptcy discharge can be opposed.
When this happens, the creditors or the Trustee can object the release of a bankrupt depending on their circumstances.
This usually results in the matter going to mediation or before a judge in court.
The court will issue an order which will give you additional time to complete any unfulfilled obligations in your bankruptcy agreement.
This could require you to attend regular credit counselling meetings with your Trustee, paying surplus income fees and providing proof of your monthly income or household expenses.
Bankruptcy and Credit Records
Following your discharge, although your bankruptcy term may have ended, your credit report will still include details of your bankruptcy for some time.
This often confuses people as they believe that their record of bankruptcy will go away after they have been discharged.
Generally, your bankruptcy history will show on a credit report for up to seven years following the date you have been released.
Other credit records may store your information for longer, such as TransUnion who will remove bankruptcy from your file after seven years following discharge.
If you have declared bankruptcy on more than one occasion, then the bankruptcy may appear on your credit file for up to fourteen years.
Your credit rating and chances of obtaining future credit will be affected until the records are clear.
Brokers and lenders will have access to your files when considering you for one of their products.
Keep this in mind when you are applying for credit.