Bankruptcy can be a stressful and overwhelming process. But, understanding the steps involved, especially on how to acquire a discharge, can significantly ease your burden. This guidebook aims to provide a detailed insight into the process of discharge from bankruptcy, helping you navigate through the complex legal terrain.
What is Bankruptcy Discharge?
Bankruptcy discharge is a legal process that releases a debtor from the responsibility of certain debts. It is a crucial part of the bankruptcy journey, signifying the end of the debtor’s obligation to repay the debts included in their bankruptcy filing. However, it’s important to note that not all debts are dischargeable.
Preparing for Your Discharge Application
To start your journey towards discharge, begin by locating your bankruptcy file at your local court registry. Look for key documents such as:
- Your bankruptcy file number.
- The trustee’s report.
- Any previous discharge order.
- The disposition sheet from any previous discharge hearing.
Drafting Your Application for Discharge
Once you’ve gathered the necessary documents, you can commence drafting your application for discharge. This process includes preparing several key documents:
- Requisition (Notice of Hearing for Bankrupt’s Application for Discharge).
- An Affidavit of Service.
- Your affidavit, detailing why you believe you’re entitled to a discharge.
- A draft of the order that you’re seeking.
Serving Your Documents
After drafting your application, you need to serve the documents to all relevant parties. This includes any creditor who filed an opposition to your discharge or attended an earlier discharge hearing. Additionally, your trustee and the Office of the Superintendent in Bankruptcy (OSB) should also be served.
Remember to provide proof of service at your discharge hearing. This is usually in the form of a signature from the party served, or an Affidavit of Service.
The Court Hearing
During the court hearing, you’ll have the opportunity to present your case to a judge or a Registrar in Bankruptcy. The court will consider many factors, including your conduct before and during bankruptcy, your current income, and whether you have fulfilled all your duties under the Bankruptcy and Insolvency Act.
Types of Discharge Orders
The court can grant several types of discharge orders, including:
- An absolute discharge, which releases you from the obligation to repay the debts you had as of the date of your bankruptcy.
- A conditional discharge, which requires you to fulfill certain conditions before being granted an absolute discharge.
- A suspended discharge, which sets a specific future date when your absolute discharge becomes effective.
In rare cases, the court may refuse to grant your discharge.
Finalizing Your Discharge
After the hearing, the court will grant one of the discharge orders. Once you receive your absolute discharge or the imposed suspended period has elapsed, you are legally released from paying debts that you incurred before your assignment in bankruptcy, except for certain types of debts.
Post-Discharge Considerations
Although a bankruptcy discharge releases you from most debts, some obligations, like alimony payments, child support, fines or penalties imposed by the court, and debts arising from fraud, are not dischargeable.
Wrapping Up
The process of discharge from bankruptcy can be complex and daunting. However, understanding the steps involved and having a comprehensive guidebook can make the journey less overwhelming. Always remember that legal advice must come from a lawyer, who can guide you through the process and ensure all legal procedures are correctly followed.
