Bankruptcy Step 10: The bankruptcy is discharged

• Introduction to bankruptcy in Canada
• Step 1 - Contact a trustee in bankruptcy
• Step 2 - Complete bankruptcy forms
• Step 3 - Trustee sells your assets
• Step 4 - Trustee notifies your creditors
• Step 5 - Creditors meetings if required...
• Step 6 - Examination by an officer of the OSB if required...
• Step 7 - You are required to attend two counselling sessions
• Step 8 - Trustee prepares your report to the OSB
• Step 9 - You attend a discharge hearing if required...
• Step 10 - You are discharged from bankruptcy
• The student loans hardship provision

Bankruptcy is discharged

Step 10: The bankruptcy is discharged

Once you are discharged from bankruptcy, you will be released from the legal obligation to repay the debts you had at the date of bankruptcy, except for certain types of debts that are excluded.

The types of debts that are excluded from discharge include:

• Alimony payments and child support.
• Student loans, if it is less than seven years since you ceased to be a full- or part-time student. However, five years after your studies, you can make an application for release from your student loans on the basis of hardship. To learn more.
• A fine or penalty imposed by the Court.
• Debt arising from fraud.

Note that bankruptcy does not affect the liability of someone who guaranteed or co-signed a loan on your behalf.