I was helping a gentleman last week file for bankruptcy, and I was explaining what he would be responsible for while he was bankrupt. He asked me just how long he would be considered bankrupt.
I get this question a lot – people want to know when their debts will go away and when their fresh start officially begins.
Usually a person is bankrupt for 9 months from the time that they’ve filed for bankruptcy, but the amount of time that you are bankrupt depends on certain factors. These include whether or not you have been bankrupt before, and whether or not you completed the duties imposed on you by your bankruptcy.
When you declare bankruptcy you are required to do certain things. You have to submit a monthly report of your income and what you spend it on, attend counselling sessions to talk about money management, and you may have to pay money every month to your creditors, depending on the number of people in your family and your family income.
If this bankruptcy is not your first, or you fail to complete any of the conditions of your bankruptcy, you will not automatically be discharged, or released from bankruptcy after 9 months. If this is your situation, the trustee will make an application to court to set up a discharge hearing date, where you will appear before a judge who will decide when you will no longer be bankrupt.
Once you have been discharged by either your trustee or a judge, your fresh start can finally begin; the debts included in your bankruptcy are wiped out.
Bankruptcy may or may not be the solution for you, but if you find yourself in financial trouble, contact me at 310-PLAN for a free consultation. You can also email me any questions you might have about bankruptcy or other financial options. Let’s make a plan so you can get started on your healthy financial future.Â
You must log in to post a comment.