How long do you have to pay bankruptcies?

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Navigating bankruptcy payments in Canada varies by situation. First-timers pay for 9 months if no surplus income; with surplus, it goes to 21 months. A second bankruptcy without surplus means 24 months, but with surplus, it’s 36. From the third time, automatic discharges end, needing court applications.

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_{Bankruptcy payments duration varies based on income surplus.}

Bankruptcy Payments Question

How long do you have to pay bankruptcies? I want to understand the payment timeline when dealing with bankruptcy. How long do I have to make payments?

From: Anonymous Question
Location: Regina, Saskatchewan (SK)
Category: personal bankruptcy

Bankruptcy Payments Answer

In Canada, how long you’ll be making payments when juggling bankruptcy can depend on a couple of factors. Picture this: For your first round, if there’s no surplus income hanging around, you’re looking at a 9-month stint. But if there is surplus income, those payments stretch to 21 months. Now, imagine if it’s your second rodeo—without any surplus income, it’s 24 months, and with surplus? Prepare for 36 months. As for any third or beyond trips down this financial path, the scenario changes. Automatic discharges are off the table, and you’ll need to hop onto the court application track, which can make the whole bankruptcy resolution a bit longer than you’d probably like.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, the duration of payments in a bankruptcy typically depends on your income level and other factors. Under the Bankruptcy and Insolvency Act (RSC 1985, c B-3), there are specific provisions regarding the payment timeline.

If your income is below the threshold set by the Superintendent of Bankruptcy, your bankruptcy lasts for 9 months, and there are no payments required unless the trustee determines otherwise. If your income exceeds that threshold, you may be required to make payments over a period of 21 months. This is outlined in Section 68 of the Act.

Additionally, if you have previously declared bankruptcy, the periods can extend; for a second bankruptcy, the duration can be up to 24 months. These timeframes can be affected by whether there are surplus income payments.

For detailed information, refer to the Bankruptcy and Insolvency Act, specifically Sections 68 and 69 for further clarification on the payment timeline.

From: OSB Helper

Related Questions to Payment Duration

Here are the top 5 most frequently asked questions related to the duration and payments of bankruptcy in Canada, presented in a clear and numbered format:

1. How long does bankruptcy last?

• Bankruptcy can last from 9 months to 36 months, depending on factors such as previous bankruptcies and surplus income[1][2][4].

2. How much do you pay monthly for bankruptcy?

• The minimum cost is $200 per month, but this can vary based on the length of the bankruptcy period and the amount of surplus income[2].

3. What factors extend the length of bankruptcy?

• Previous bankruptcies, requirement to pay surplus income, and failure to complete bankruptcy duties can extend the length of bankruptcy[1][2][4].

4. How does surplus income affect bankruptcy duration?

• If you have surplus income, your bankruptcy can last 21 months for a first-time bankrupt and 36 months for a second-time bankrupt[1][2].

5. What happens if you don’t complete your bankruptcy duties?

• Failure to complete your duties can increase the length of your bankruptcy and may require a court hearing for discharge[1][2].

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

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