Discharge of Bankrupt: Canada Debt .ca defines Discharge of Bankrupt

Bankruptcy Term Discharge of Bankrupt

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Canada Debt has the definition to the bankruptcy and debt term Discharge of Bankrupt. Finding answers to terms such as Discharge of Bankrupt can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Discharge of Bankrupt in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Discharge of Bankrupt' is used as follows:

For bankrupts who do not qualify for the automatic discharge, the trustee is required within one year from the beginning of the bankruptcy to apply to the court for a hearing of the application for a discharge.

The court official has several options from which to choose. At the hearing, the court decides whether to postpone the hearing to a later date, refuse the discharge, or issue any of the following orders
Order of absolute discharge which relieves the bankrupt of the debts incurred before the bankruptcy, except for the exceptions provided in the Act.
Order of conditional discharge where certain conditions must be met before an absolute order of discharge is issued.
Order of suspended discharge where the court orders a delay before the discharge becomes effective.