How Long Does Bankruptcy Take?
Filing for bankruptcy will not take place right away, there is a process you have to go through and a period of time you have to wait, and sometimes additional time is added on. Basically, signing the paperwork in the beginning just means you have started the process. During the time that the bankruptcy is being processed creditor cannot demand that you pay them. However, you will end up paying them something when the debt is discharged.
Your actual debts will not be canceled until the bankruptcy process has been completed and only at that time will the bankruptcy be legally discharged. It will all take nine to ten months, sometimes longer. It is essential that you meet all the requirements asked of you and agreed upon in the contracts for the bankruptcy to be complete.
There are several different factors that the determine how long it will take to process, including if you have filed before, how well you meet the requirements, and more. Usually, bankruptcy will take less time for you to get out of debt than if you go with another option, such as a debt consolidation loan or debt settlement with a lower interest rate. On the other hand, other debt relief programs will not have such a severe impact on your credit rating compared to bankruptcy.

Automatic Discharge
Bankruptcies in Canada will often qualify for automatic discharge after a nine-month period. That way many of those who file will be able to go on with their lives quickly once they file bankruptcy. If you are one of the many who does not qualify to get an automatic discharge either (1) you are required to pay a surplus income or (2) you have filed for bankruptcy before, one or the other means you will have a longer wait. However, even if it is your first time, they can still extend the discharge period depending on specific criteria, whether you are paying surplus income or not.

Automatic Discharge Extension
If a surplus income payment is required, individuals will spend 21 months in total in bankruptcy, even if it is their first-time filing. However, if it will be your second bankruptcy, it is automatically a 24-month period of bankruptcy protection, or 36 months if a surplus income payment is required.

Non-Automatic Discharge
Different factors may prevent an automatic discharge regardless if you meet all of the requirements. Whether you have met all the standards above for the normal automatic discharge or for the extended automatic discharge, the following are things to remember when deciding if bankruptcy is right for you:
When Creditors Question the Bankruptcy
If this happens, you will not experience an automatic discharge. Although unlikely, creditors may question your bankruptcy. If they do, it will delay your discharge, but that does not mean it won’t happen. Whereas, a consumer proposal can be refused by the majority of your creditors, not only delaying it, but possibly rejecting it completely.
Filing Multiple Bankruptcies
If you have previously filed over two bankruptcies, you will be required to appear in court for the bankruptcy discharges to take effect.
Failing to Meet Bankruptcy Arrangements
If you fail to maintain your bankruptcy duties, it will result in the automatic discharge not being approved. During the bankruptcy process, your trustee handles a great deal, and not remaining in touch is a good way to delay discharges.
Why Wait for The Discharge?
Another difference in bankruptcy and the other debt relief options is that the others do not require waiting for discharges, nor do you have to play a guessing game.
If you are interested in other alternatives simply fill out our debt relief form and one of our advisers will reach out to you.

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