Undischarged Bankrupt: How To Get Discharged Of Debt

How To Get Discharged Of Debt If You Haven’t Received Your Bankruptcy Discharge

Filing for bankruptcy in Canada is often the best way to draw a line under past financial mistakes and unsecured debts that have spiraled out of control.

However, it is a legal procedure that will impact your financial opportunities for a long time, not least while you are labeled ‘undischarged bankrupt‘.

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Undischarged Bankruptcy Explained

The term undischarged bankrupt relates to people that are officially still undergoing the legal process of filing for bankruptcy.

Throughout this period, you are burdened by the significant financial restrictions of bankruptcy while you are also not yet free from the debt you are trying to write off.

Therefore, obtaining a discharge from your debt should be a priority.

You enter this state of financial uncertainty from the moment you sign and submit the bankruptcy filing paperwork.

However, the bankruptcy process is a longwinded legal procedure that will take a minimum of nine months to be completed.

Throughout this time, you will be considered undischarged from bankruptcy as you remain bound several obligations.

The discharge signifies the finalization of the legal process.

Under ordinary circumstances, you will become discharged after nine months and one day if your debts were relatively small.

However, the duration can be extended to 21 months if your income is greater than the government standards.

Once the discharge is confirmed, the financial restrictions relating to the future credit agreements you may enter into.

However, if you want to become discharged from debt, you will also need to satisfy several requirements.

The Getting Discharged From Debt Process

When filing for bankruptcy in Canada, you will need to understand the expectations set out by the Bankruptcy and Insolvency Act (BIA).

Failure to meet your duties during the period of undischarged bankruptcy can result in your Trustee being left unable to discharge you from your debts.

The Bankruptcy Court will only issue a discharge from your debt once all duties have been satisfied.

The list may include:


  • Complete payments of all bankruptcy related fees;
  • Attend counseling sessions in relation to financial responsibility;
  • Provide full tax information;
  • Submit monthly income reports and asset information.


As a debtor, it is your responsibility to ensure that these duties have been fulfilled, although the support of an experienced and dedicated Trustee certainly helps.

Once you have met your obligations, the bankruptcy discharge is completed automatically.

There is no need to file any further documents.

Securing Future Credit

Even after you have been discharged from bankruptcy, you should avoid revisiting the same lenders.

When creditors “write off” your debts, it is a separate issue to the bankruptcy filing itself.

They have ultimately accepted to swallow the debt.

While your credit report won’t show signs of the past debts, the creditors are within their rights to keep a record of the bad debt.

In most cases, they will subsequently avoid future applications from you.

Given that hard searches impact your credit rating too, it’s best to look at other opportunities.

For further info on filing for bankruptcy, handling the undischarged bankruptcy period, and taking the right steps following a discharge, drop us an email today!

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

One Response to “ Undischarged Bankrupt: How To Get Discharged Of Debt”

[…] those who haven’t been discharged from their bankruptcy, this process is going to be a little more […]

[…] If you decide to apply for credit of more than $500, you will need to declare that you are an undischarged bankrupt. […]

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