How do I get discharged from my bankruptcy?

Understanding Bankruptcy Discharge: A Comprehensive Guide

Bankruptcy is a complex legal procedure that can provide relief to individuals who are unable to pay their debts. However, the process doesn’t end there. A crucial stage in the bankruptcy procedure is the discharge. This article aims to comprehensively answer the question: “How do I get discharged from my bankruptcy?”

What is Bankruptcy Discharge?

Bankruptcy discharge is an order that releases a debtor from the obligation of paying most of their debts. It signifies the end of your bankruptcy process and gives you a fresh start. However, the path to bankruptcy discharge varies from one case to another.

The Path to Automatic Discharge

In certain situations, an automatic discharge may be granted. For those filing bankruptcy for the first time, automatically getting out of bankruptcy typically comes after:

  1. Nine months, if you’re not required to make surplus income payments
  2. Twenty-one months, if you are making surplus income payments

For individuals who have declared bankruptcy more than once, the automatic discharge comes after a longer period.

The Role of Surplus Income

Surplus income is an essential factor in determining the duration of your bankruptcy and when you can be discharged. If you’re required to make surplus income payments, it means that your income is above a certain threshold, and you’re expected to contribute towards your debts.

Fulfilling Your Duties

The path towards bankruptcy discharge also involves fulfilling certain duties. These may include attending credit counselling sessions, providing monthly income statements, and cooperating with the bankruptcy trustee. Failing to complete these duties could delay your discharge.

The Court’s Role

In some cases, you may need to go to court to be discharged from bankruptcy. This usually happens if you have unfulfilled duties, if a creditor opposes, or if it’s not your first bankruptcy.

The Aftermath

Getting out of bankruptcy does not eliminate all your financial problems. Your credit rating will be significantly affected, making it difficult to secure loans or credit cards in the future. It’s crucial to responsibly manage your finances post-discharge to avoid falling into debt again.

Rebuilding Your Credit

Despite the difficulties, rebuilding your credit post-bankruptcy is possible. You can start by opening a bank account and applying for a secured credit card. Over time, with responsible credit use, you can improve your credit score.

Conclusion

Understanding how to get discharged from bankruptcy can help you navigate the process more smoothly. However, remember that bankruptcy should be your last resort. Explore other debt relief options and seek professional advice before making a decision.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.