How long is the bankruptcy process?

First Time Bankrupt

Individuals that file bankruptcy for the first time will be in the process for 9 to 21 months. The length of the process depends on the requirement for Surplus Income, explained below. An individual is able to obtain a discharge at the end of 9 months if there is no requirement for surplus income. If there is a requirement for surplus income, an individual is able to obtain a discharge at the end of 21 months.

Second time Bankrupt

Individuals that file bankruptcy for the second time will be in the process for 24 to 36 months. The length of the process depends on the requirement for Surplus Income, explained below. An individual is able to obtain a discharge at the end of 24 months if there is no requirement for surplus income. If there is a requirement for surplus income, an individual is able to obtain a discharge at the end of 36 months.

Surplus Income

The length of a bankruptcy depends greatly on weather you have a surplus income requirement. Surplus income is the amount required to be paid into a bankruptcy estate. It is calculated based on a formula set out in the Bankruptcy and Insolvency Act. The formula, in simple terms, is Monthly income, less certain necessary expenses (i.e. expenses for a medical condition), less the Superintendents standard. The Superintendent standards is set by the OSB and is based on the number of members in the household. If the formula is positive, then 50% of the surplus is required to be paid each month into the estate.

Your Licensed Insolvency Trustee at Risman Zysman will complete an in-depth review of your income and expenses and outline the potential length of the process, and your requirements to pay surplus income.