Glossary of Terms
Bankruptcy / Proposal / Financial Glossary |
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| discharge of Bankrupt | 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. There are several types of discharge orders that can be granted by the court. At the discharge hearing, the court decides whether to postpone the hearing to a later date, refuse the discharge, or issue any of the following orders: o Absolute discharge order: relieves the bankrupt of the debts incurred before the bankruptcy, except for those that fall under Section 178(1) of the Bankruptcy and Insolvency Act. o Conditional discharge order: certain (specific) conditions must be met before an absolute order of discharge is issued. o Suspended discharge order: the court orders a delay before the discharge becomes effective. This type of discharge is typically issued if it is not a first time bankruptcy. Other reasons for a suspended order include: gambling as a cause of insolvency or other conduct issues. |
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