Creditor Opposition

Creditors have the right to oppose a bankrupt’s discharge. The process is as follows:

The creditor must file a formal Notice of Opposition to Discharge with the trustee, the court, the Office of the Superintendent of Bankruptcy and the bankrupt prior to the bankrupt’s automatic discharge date. The Notice of Opposition must include a comprehensive explanation of the creditor’s reasons for opposing the discharge of the bankrupt.

The opposing creditor must pay a $50 fee to the court.

The creditor must appear in court at the court hearing. The Toronto bankruptcy court requires all creditors to be represented by a lawyer; you are not permitted to represent yourself.

Toronto insolvency lawyers typically charge in the range of $300 to $600 per hour, and will typically bill between 4 and 8 hours of time for file preparation, preparation of documents, and attendance in court.

If the court determines that your opposition was unwarranted, the court may require you to pay the costs for the trustee to attend the discharge hearing, so it is important to discuss your opposition with your lawyer in advance of the hearing to accurately estimate your chances of success.

We strongly encourage all creditors to speak to the Hoyes Michalos trustee responsible for the file prior to filing your opposition, as there may be other less expensive and less risky options to accomplish your objectives.