Automatic Discharge from first bankruptcy in Canada?
Does a first time bankrupt always get an automatic discharge after 9 months? What if that individual had more then $40K in equity in their home and makes a significant salary? Could their discharge be affected?
No a first-time bankrupt doesn’t always get an automatic discharge. They are simply eligible for an automatic discharge if they have:
1. Never previously been bankrupt;
2. Filed all required monthly statements;
3. made payments in full to Trustee (including any surplus payment that was required)
4. Attended both counseling sessions and any additional meetings that may be requested;
5. Any other applicable requirement under the Bankruptcy and Insolvency Act or pursuant to any Order of Court.
For more information on this I suggest you contact a licensed trustee and have him review all the potential outcomes at discharge time.