How long does bankruptcies last?

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In Canada, filing for bankruptcy typically takes nine months if it’s your first time. But if you have surplus income, it might stretch to 21 months. For a second bankruptcy, you could face up to 36 months. This affects your credit report for at least six years, sometimes longer, depending on where you live. But if you’re already in debt chances are your credit rating is already shot and bankrtupcy can offer REAL relief.

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Bankruptcy Duration Question

How long does bankruptcies last? If I file for bankruptcy, how long does it remain on my record?

From: Anonymous Question
Location: Delta, British Columbia (BC)
Category: personal bankruptcy

Bankruptcy Duration Answer

In Canada, going bankrupt for the first time usually takes around nine months. But if you’ve got some surplus income, you might be looking at up to 21 months in the process. Now, if it’s your second time, brace yourself for a ride that could take up to 36 months. Even after closing that bankruptcy chapter, it sticks around on your credit report for at least six years from the date you filed. Some credit bureaus might push it to seven years, and in places like Prince Edward Island, you could see it sticking around for up to ten years. If you’re considering alternatives, check out consumer proposals.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, if you file for bankruptcy, it generally lasts for a duration of 9 to 21 months, depending on whether this is your first or subsequent bankruptcy. This information is outlined in the Bankruptcy and Insolvency Act (RSC 1985, c 11), specifically in section 150 regarding the discharge of bankrupts.

After you are discharged from bankruptcy, the bankruptcy will remain on your credit report for 6 to 7 years, depending on the type of bankruptcy declared. This is also stated in the relevant regulations concerning the reporting of bankruptcies, specifically in C.R.C., c. 368, which addresses the duration of records kept by the credit reporting agencies.

From: OSB Helper

Related Questions to Credit Report

Here are the top 5 most frequently asked questions related to the duration of bankruptcies in Canada, along with brief answers:

How long does it take to be discharged from bankruptcy for the first time?

• Typically 9 months, but can be extended to 21 months if surplus income payments are required[3][4][5].

How long does it take to be discharged from bankruptcy if it is not the first time?

• Typically 24 months, but can be extended to 36 months if surplus income payments are required[3][4][1].

How long does bankruptcy stay on my credit report?

• Usually 6 to 7 years from the date of discharge, or 14 years for a second bankruptcy[2][3].

What are the conditions for an automatic discharge from bankruptcy?

• Attendance at financial counselling sessions, no opposition from creditors or the trustee, and compliance with any required surplus income payments[3][4][1].

How does the bankruptcy process affect my assets and income?

• Assets are assigned to the trustee and may be sold to pay creditors, and surplus income may be required to be paid into the bankruptcy estate[2][5][4].

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

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