Canadian · Bankruptcy
Bankruptcy discharge timeline.
Find your automatic discharge date for a first or second bankruptcy, with or without surplus income payments, straight from section 168.1 of the Bankruptcy and Insolvency Act.
First bankruptcy: 9 months (21 if you must pay surplus income). Second bankruptcy: 24 months (36 with surplus income). Discharge is automatic only if no opposition to it is filed.
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What section 168.1 says
For a bankrupt who has never been bankrupt before, BIA s. 168.1(1)(a) provides for automatic discharge after 9 months, unless in that period an opposition to the discharge is filed or the bankrupt is required to make surplus income payments under s. 68; in that case discharge is after 21 months, unless an opposition is filed before it takes effect. For a bankrupt who has been bankrupt one time before, s. 168.1(1)(b) uses 24 and 36 months in the same way.
A bankrupt may apply to the court for discharge earlier (s. 168.1(2)). If anyone files an opposition, the court decides, and it can refuse, suspend or attach conditions to a discharge.
Cases the automatic rule does not cover
Section 168.1(1) lists a first and a second bankruptcy only. It also does not apply to a bankrupt with $200,000 or more of personal income tax debt that is 75% or more of total unsecured proven claims: under s. 172.1(1) a hearing may not be held before 9 or 21 months for a first bankruptcy, 24 or 36 for a second, and 36 months otherwise.
Discharge is not the same as a clean record
Discharge releases most debts, but not all (BIA s. 178). Credit reporting rules are set by the credit bureaus and provinces, not by this tool.
Sources, read 16 October 2026: Justice Laws - Bankruptcy and Insolvency Act, OSB - Directive No. 11R2-2026, Surplus Income, OSB - Considering bankruptcy.
Frequently asked questions
How long does a first bankruptcy last in Canada?
9 months if no one opposes the discharge and you are not required to pay surplus income, otherwise 21 months (BIA s. 168.1(1)(a)).
How long is a second bankruptcy?
24 months, or 36 months if you must make surplus income payments (s. 168.1(1)(b)).
What stops an automatic discharge?
An opposition to the discharge filed within the period. The matter then goes to court.
What about a third bankruptcy?
Section 168.1(1) covers a first and second bankruptcy only; with more, discharge is decided by the court.
Estimate only — not legal advice
Estimate only. This tool is not legal, financial or insolvency advice. A Licensed Insolvency Trustee decides the figures that apply to you. Figures follow OSB Directive 11R2-2026 and the Bankruptcy and Insolvency Act and General Rules as published on 16 October 2026; they change, so confirm them. Nothing you enter is sent anywhere or stored.