Several factors affect how long you will be bankrupt for in Ontario. If you are a first time bankrupt, and if you complete all of your duties while bankrupt, and if your trustee or your creditors to do not object to your discharge, you are eligible to be discharged from bankruptcy after nine months.
If you have been bankrupt before, you are not eligible for an automatic discharge from bankruptcy in nine months. Your bankruptcy will be extended for a period of time that will be determined by the bankruptcy court.
If you have significant surplus income, your bankruptcy will be extended past nine months.
NOTE: At the time of writing, the government of Canada has introduced proposed bankruptcy reforms that will extend the length of the bankruptcy in some cases. More details can be found in our article on bankruptcy reforms.
It is important to note that although a the bankruptcy process may be completed in as little as nine months, a note will appears on your credit report for a minimum of six years after you are discharged from bankruptcy.
Bankruptcy rules are complex. We suggest you contact a licensed Ontario bankruptcy trustee who will meet with you to explain the rules for filing bankruptcy, discuss how long you will be bankrupt for in Ontario, and help you decide whether or not a bankruptcy is the correct solution for your financial situation.
