How a Bankruptcy Discharge Gives You a Fresh Start
Benny Mendlowitz, Trustee |
 | Everyone who files bankruptcy in Toronto is filing bankruptcy to have their debts discharged, but when I meet with people in my North York or Scarborough office many people are confused about what a discharge actually means. Obtaining your discharge from bankruptcy is the final step in the bankruptcy process, allowing you to get a fresh start. Your discharge from bankruptcy releases you from the obligation to repay most of your debts. |
This is where it gets confusing, because your discharge from bankruptcy does not release you from some debts, such as student loans and support payments. (When we meet I will review all of your debts, and let you know which debts will not go away when you go bankrupt).
Most bankruptcies I handle in Toronto end with what’s called an automatic discharge, which is granted if you have never filed bankruptcy before, if your creditors and I do not object, and if you have complied with all of your responsibilities as specified in the Bankruptcy & Insolvency Act. (You can read about your duties in my article about bankruptcy in Toronto). An automatic discharge means you do not have to appear before the court to complete your bankruptcy.
If you do not qualify for an automatic discharge, the bankruptcy court in Toronto will hold a discharge hearing, and the bankruptcy Registrar (similar to a judge) will decide how and when your bankruptcy will end.
I have a simple approach to personal bankruptcy in Toronto: I explain your duties in detail before we start the process, so that you will complete your duties and receive your discharge from bankruptcy as soon as possible. Please call me at 310-PLAN (310-7526) or e-mail me for more information on how to discharge your debt and plan for a debt-free future.
