Upon discharge from bankruptcy, an individual is released from his or her debts and will generally have no further obligations to the trustee. At this point, an individual has a fresh start and can move forward in a positive direction.
Staying on top of one's finances is the top priority after coming out of bankruptcy. Two (2) mandatory financial counselling sessions were provided during the bankruptcy process to help the individual learn better money management skills and understand the underlying causes of the bankruptcy. Free financial literacy and money management resources are widely available - accessing these tools is critical to future success.
Another priority after bankruptcy is rebuilding the credit score. A first-time bankruptcy will stay on an individual’s credit record for a period of six years following discharge. Despite the notation on the credit bureau, an individual may begin to rebuild credit immediately following bankruptcy. Click here for tips on rebuilding credit after bankruptcy.
This concludes my 5-part blog series on personal bankruptcy in Canada, which was intended to provide a very general overview of the process. For specific information on how bankruptcy will affect you - and to find out if there are other options - please contact a Licensed Insolvency Trustee in your area.
All articles in this series:
Lana Gilbertson is a Licensed Insolvency Trustee with MNP Ltd., based in Vancouver, BC for more about how Lana can help, contact her directly at 604-637-1599 or email@example.com.
Click here for a list of our offices throughout Greater Vancouver, Fraser Valley and Vancouver Island.