Once the trustee has been discharged and if the bankrupt has not been discharged themselves, then the creditors' rights are fully re-instated. They may pursue any collection or legal action they were permitted to follow prior to the person filing for bankruptcy.

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Educating one Consumer at a time

The trustee opposed the discharge as the bankrupt (not sophisticated) did not provide consistent monthly income/expense statements so the trustee could not tell whether there was indeed surplus income or not (for the record there is not). The bankrupt had an incorporated company that has never made money (and in fact was the reason the individual needed to file for personal bankruptcy as recommended by the trustee). The old company is not operating (however business number still not cancelled representing an outstanding duty of the bankrupt) but a new one was incorporated (no financials...another outstanding matter...new company also does not make money). Nonetheless, my question was not about this but rather can the creditors' rights be reinstated if the trustee gets his discharge prior to the bankrupt being discharged?

All first-time bankruptcies in Canada are automatically discharged after 9 months UNLESS there is "surplus" income which then extends the discharge to 21 months OR the automatic discharge has been opposed by your creditors, the Superintendent of Bankruptcy or your Trustee.

Who is opposing your discharge and why or do you have "surplus" income?

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Educating one Consumer at a time

Court hearing for a 1st time bankrupt's discharge has been adjourned indefinitely...if the Trustee receives his discharge prior to the bankrupt receiving his discharge, is it true that the rights of the creditors are revived?