After making an assignment in bankruptcy with a licensed Trustee, you must complete a number of duties, including, but not limited to:
1) Attending two credit counselling sessions;
2) Reporting your income on a monthly basis; and
3) Making all required payments.
If you are a first or second time bankrupt, and fulfill all of your duties prior to your scheduled discharge then you will receive what is called an Automatic Discharge. It is at this time that your debt is discharged and you are no longer an undischarged bankrupt.
If you fail to fulfill your duties, your Trustee is required to oppose your discharge. They do this by completing a report and filing it with the Court. You will then be summoned to the hearing at which time the Court will grant one of the following types of discharge orders:
An absolute discharge is great. It means that the Court has decided that you have fulfilled all of your obligations and that you should be released from your debts. After receiving an absolute discharge, you have completed every aspect of your bankruptcy and are no longer an undischarged bankrupt.
Conditional discharge orders are just that: conditional upon you fulfilling certain requirements such as making outstanding payments, completing outstanding counselling sessions, or other requirements determined appropriate by the court. Once you complete these conditions, you can return to the court and seek an absolute discharge.
If the Court isn’t happy with the cause of your bankruptcy, behaviour, or conduct, the Court may simply suspend your discharge which is similar to them saying that they’re not happy and that you have to re-apply for your discharge in the future.
This is the Court’s way of saying “Try again later…”. It’s not what you want to hear as it lengthens your bankruptcy without a clear end in sight. These orders are relatively rare and usually only issued in instances where the bankrupt has committed an offence or done something to upset the Court.
Bankruptcy is a legal process, and can be confusing at times, so we hope that the information above has provided you with the answers you were looking for. If not, don’t hesitate to give us a call. We’re always happy to review your unique personal situation to see how we can help. Give us a call or complete the form below and let us impress you with our prompt response. What are you waiting for, you’ve got nothing to lose except your debt!