How long do bankruptcies last?

_{bankruptcy duration, impact on credit report, Ontario}

In Canada, declaring bankruptcy has different timelines based on whether it’s your first or second time. First-timers can expect about 9 to 21 months, depending on surplus cash. A second bankruptcy stretches from 24 to 36 months. Meeting obligations and creditor issues play a role in the duration.

_{Bankruptcy duration in Canada: 9 to 36 months based on income.}

Question

How long do bankruptcies last? I’m curious about the overall duration of the bankruptcy process and how long its effects linger. Knowing the timeline will help me prepare for the future.

From: Anonymous Question, Brampton, Ontario (ON)

Debt Insiders Answer

In Canada, the timeline for declaring bankruptcy can differ depending on whether it’s your first or second go-around. For those navigating their first bankruptcy, you’re generally looking at about 9 months, that is, if you don’t have a ton of surplus cash lying around — but if there’s more in your piggy bank than expected, this might stretch to 21 months. Sound familiar? Well, when it comes to a second bankruptcy, brace yourself — the minimum stint is 24 months, potentially stretching to 36 months if surplus income is a thing for you. And don’t forget, wrapping things up depends on dotting your i’s and crossing your t’s on all required duties, as well as dealing with any creditor objections that might pop up.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, the bankruptcy process generally lasts for a minimum of nine months for a first-time bankrupt individual. This duration can extend to 21 months if the individual has surplus income. The overall duration includes the period the individual is under the protection of the bankruptcy process until their discharge is granted, which usually occurs at the end of this timeframe.

The effects of bankruptcy can linger on a person’s credit report for up to six years after discharge for a first bankruptcy, and for 14 years if it is a second bankruptcy, as outlined in the Bankruptcy and Insolvency Act (RSC 1985, c B-3), Section 178.

From: This answer is provided by scanning the Bankruptcy & Insolvency Act and related directives from the Office of the Superintendent of Bankruptcy (OSB).

Related Questions

Here are the top 5 most frequently asked questions related to the duration of bankruptcies, based on common queries and trends:

1. How long does a first-time bankruptcy last?

• A first-time bankruptcy typically lasts 9 months if no surplus income payments are required, and 21 months if surplus income payments are necessary[2][4][5].

2. How long does a second-time bankruptcy last?

• A second-time bankruptcy typically lasts 24 months if no surplus income payments are required, and 36 months if surplus income payments are necessary[1][4][5].

3. What happens if I have to make surplus income payments during bankruptcy?

• If you have to make surplus income payments, the duration of your bankruptcy will be extended to 21 months for a first-time bankruptcy and up to 36 months for a second-time bankruptcy[1][2][5].

4. Can a bankruptcy be discharged in less than 9 months?

• No, the minimum duration for an automatic discharge in a first-time bankruptcy is 9 months, provided all conditions are met[2][4][5].

5. What if this is my third bankruptcy?

• For a third bankruptcy, you are not eligible for an automatic discharge and must attend a discharge hearing in a bankruptcy court[1][4][5].

If you have a question about debt see our debt questions or ask your own debt related question.

References

_{Table of article references}