The Bankrupt's Discharge

If you are a first-time bankrupt you are eligible to receive a discharge from bankruptcy nine months after filing for bankruptcy. The Trustee is required to prepare and file a report on your conduct and the administration of your bankruptcy. Notice of the pending discharge is sent to the Superintendent of Bankruptcy and to all creditors. Provided that all of your duties have been fulfilled and that your discharge is not opposed, you will be given a Certificate of Discharge by the Trustee for the specified discharge date.

Where this is not your first bankruptcy or where your discharge has been opposed, the Trustee will apply to the court for a hearing on your application to be discharged.

As a result of the hearing, the court may issue one of the following orders:

• Order of absolute discharge: This official document relieves you of all the debts you incurred prior to your declaration of bankruptcy, excluding debts referred to in Section 178 of the Bankruptcy Act.
• Order of conditional discharge: The court may require that you meet certain conditions before your discharge becomes absolute. For example, you may be asked to pay a specified amount to the Trustee for distribution to your creditors.
• Order of suspended discharge: The court may order a delay whereby your discharge will not take effect until a certain date. This delay could be the result of an objection by a creditor, the Trustee, or the Superintendent in Bankruptcy. It could also be the result of an ongoing criminal investigation, a breach of your duties as specified in the Act, or a previous bankruptcy.

In extraordinary circumstances, the court may refuse the discharge or postpone the hearing to a later date.

After the bankrupt's discharge, the Trustee continues on with the administration of the estate including recovery of tax returns, and other assets, reporting on the administration, paying dividends to creditors in accordance with The Act, and obtaining his own discharge.