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When a person becomes bankrupt, it is for a certain period of time, subject to the Bankruptcy and Insolvency Act and the control exercised by the bankruptcy trustee during this period. If you are considering filing Chapter 9 or Chapter 13, contact our Sacramento Bankruptcy attorneys.

During the so-called period of bankruptcy, the trustee shall carry out the liquidation of the assets of the bankruptcy and after this period, the bankruptcy is "released" from its title.

Generally, in the case of a first bankruptcy, a consumer will be released automatically after 9 months, without needing to apply to the Court on this matter. However, in some cases this does not apply. To learn more about how to best file and what strategy to use, our Sacramento Bankruptcy attorneys can help.

In some cases, a former creditor may refuse to release their old debts. In such cases, the former creditor will address the Court to demand that the release of the bankruptcy be refused or even, as is usually the case, with conditions, for example paying a certain amount within a required time limit.

A former creditor may oppose a bankruptcy discharge. The reasons for which a creditor may object to the release of the bankruptcy are generally as follows.

(a) the value of the assets of the bankruptcy are not equal to fifty cents per dollar of the unsecured obligations, unless proven to the Court that this has arisen from circumstances out of their control.

(b) the bankrupt party has failed to maintain bookkeeping records that are ordinarily and regularly used in business and is unable to reveal enough about their business operations and financial situation.

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