02. Personal Bankruptcy Law & Discharge Applications

At Reedman Law, we specialize in assisting individuals with obtaining discharges from bankruptcy, a niche area requiring deep knowledge and strategic advocacy.

Our experience spans representing bankrupts, Licensed Insolvency Trustees, creditors, and other stakeholders in personal bankruptcy proceedings and hearings. With hundreds of discharge applications successfully managed, our firm combines technical expertise and practical insight to guide clients through this complex legal process.

Comprehensive Representation

We offer a wide range of services in bankruptcy discharge matters, including:

01. Discharge Applications: Preparing and advancing applications for discharges from bankruptcy.
02. Pre-Bankruptcy Advice: Advising individuals on navigating bankruptcy, potential difficulties in assigning into bankruptcy, and alternatives such as BIA proposals or informal proposals to avoid bankruptcy.
03. Conditional Order Variations: Preparing and applying for variations to conditional discharge orders.
04. Proposal Advisory: Advising on consumer and Division I proposals, including reinstating defaulted proposals or obtaining court orders to make new proposals.
05. Section 178(1) Claims: Prosecuting or defending claims regarding debts that may survive bankruptcy discharge.
06. Student Loan hardship applications
07. Appeals: Handling appeals related to discharge orders.

Our experience spans all levels of court in British Columbia, including representing appellants at the Supreme Court of Canada in Poonian v. British Columbia (Securities Commission), 2024 SCC 28, a landmark case addressing whether financial sanctions imposed by securities regulators survive bankruptcy discharge. We were also lead appellant counsel for Piekut v. Minster of National Revenue (decision forthcoming) at all levels of court in British Columbia and at the Supreme Court of Canada in November 2024.

Understanding Bankruptcy Discharges

A discharge from bankruptcy is a legal process that releases an individual from most debts and liabilities, providing a fresh financial start. It enables individuals to:
- Rebuild their financial lives and credit history.
- Eliminate restrictions and obligations imposed under Section 158 of the Bankruptcy and Insolvency Act (BIA).
- Avoid penalties related to credit offenses under Section 199 of the BIA.

Navigating Opposition to Discharges

When a discharge is opposed by creditors, a Trustee, or the Superintendent of Bankruptcy (OSB), an automatic discharge is no longer available. This triggers a hearing before a Registrar in Bankruptcy, with potential outcomes including:

01. Absolute Discharge
02. Conditional Discharge
03. Suspended Discharge
04. Refused Discharge (with or without leave to reapply)
05. Adjournments

We frequently represent individuals in challenging scenarios, including:

- Long-standing bankruptcies adjourned due to non-compliance with BIA duties.
- Significant tax debt cases.
- Opposition by provincial regulatory bodies such as the BC Securities Commission for administrative monetary penalties or disgorgement orders.
- Complex Cases and Complementary Representation

Our team is equipped to handle complex bankruptcy cases, including those involving allegations of moral turpitude related to the cause of bankruptcy. We also collaborate seamlessly with civil litigators, family lawyers, criminal defense counsel, and regulatory specialists, ensuring consistent and strategic representation across interconnected legal issues.

Representation for Creditors and Trustees

Our services are not limited to individuals seeking discharges. We also represent:

01. Creditors opposing bankruptcy discharges.
02. Licensed Insolvency Trustees requiring advocacy in discharge hearings.
03. Appeals and Variations

We assist clients with:

01. Appealing conditional discharge orders to higher courts.
02. Applying for variations to discharge conditions.
03. Applying to court for student loan hardship applications

Appeals of discharge orders or other bankruptcy matters have a strict 10-day appeal period. It is critical to seek legal advice promptly to preserve your rights.

If you're seeking assistance with a bankruptcy discharge or need support for an appeal, Reedman Law is here to help.

Email us at: info@reedmanlaw.com