Can I File For Bankruptcy If I Have Been Bankrupt Before?
For a lot of people, filing for bankruptcy is something that they do once in a lifetime.
Unfortunately, though, sometimes things happen, and you may end up finding yourself facing financial hardship.
10% of people who file bankruptcy end up filing for a second time, and this can be devastating.
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Consequences of Filing More than Once
There are consequences and implications if you were to file for bankruptcy more than once.
One of the most serious implications is that you will be bankrupt for a much longer period of time.
The first time you file for bankruptcy, you will be eligible for an automatic discharge.
This can be done in 9 months in most cases.
If you have surplus income, then you will need to wait 21 months.
If you file for bankruptcy a second time, then the length of the bankruptcy will increase to two years, or three years if you have any kind of surplus income.
A second bankruptcy will also hit your credit report.
Major credit reporting agencies report a bankruptcy for around 7 years after you have been discharged.
If you have gone bankrupt for a second time, then this can stay for 14 years.
How Often Can You File for Bankruptcy?
So how often can you file for bankruptcy?
It is possible for you to file for bankruptcy three times, but if you do, then you will need to attend a hearing in court.
This is otherwise known as being a discharge hearing.
During this point, you will have to explain why you have filed for the third time.
It will then be up to the judge to determine whether or not you are discharged.
Should you File for Bankruptcy?
Sometimes, it is a choice to file for bankruptcy.
If you aren’t sure if filing for bankruptcy is the right thing for you to do, then the main thing that you need to do is speak with a licensed insolvency trustee.
When you do, they can then work with you to make sure that you are given the support you need and they can also talk you through the various stages that you will face when you file for bankruptcy too.
They can be an invaluable resource.
Consumer Proposal- The Alternative
There are alternatives to filing for bankruptcy.
If you believe that you can afford your payments but not comfortably, then a consumer proposal may be a good option.
When you go through a consumer proposal, this will appear on your credit rating, but it will show as an R7 and not an R9, like bankruptcy does.
You will also find that it doesn’t last as long, as you will still continue to make payments.
The only difference is that the payments will be lower and much more manageable.
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