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How can I get a discharge from Bankruptcy in Alberta?

In the course of our broader litigation practice we are often asked to assist people obtain a discharge from bankruptcy. Since most people do not really understand what bankruptcy entails, we thought this would be a good topic for our 31st article.


Under the Bankruptcy Act (this is Federal legislation in Canada), individuals can be eligible for Bankruptcy when they owe at least $1,000, have debts greater than the sale value of your assets and are unable to pay your debts when they come due.


The legal effect of bankruptcy on an individual is that their assets are vested in the Trustee in Bankruptcy. Trustees in Bankruptcy are officers of the court who are appointed mainly to look out for the interests of creditors.


When a person is a first-time bankrupt, they are generally eligible for an automatic discharge after 9 months, unless they have excess income in which case it is 21 months. A discharge will not release you from all debts (certain debts carry on after the Bankruptcy). Sometimes discharges are opposed by creditors, the trustee or the office of the superintendent of bankruptcy. Second time bankrupts can be discharged after 24 months (36 months if they have payments to make due to excess income). Third time bankruptcies or more can take many more years for discharges.


At Floden Ward LLP we have experience assisting individuals in obtaining discharges. If you require assistance please contact us.

The information contained in this article is not legal advice. No solicitor client relationship is formed through this article. The reader is encouraged to retain counsel for advice in these matters.





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