Contemplating a Second Personal Bankruptcy: A Comprehensive Guide
Applying for personal bankruptcy the second time around is indeed a possibility. However, certain rules and regulations must be adhered to in order to successfully achieve this. This comprehensive guide seeks to provide you with all the necessary information on this topic.
1. Preliminary Steps
You can contemplate a second bankruptcy only after you have been discharged from the first one. If you’re still linked to the first bankruptcy, you need to seek a discharge from the Bankruptcy Court.
An alternative to bankruptcy could be filing a consumer proposal. Consult a financial adviser to understand what would be the most suitable option for your individual circumstances.
2. Changes in Bankruptcy and Insolvency Act
It’s crucial to be aware of the changes in the Bankruptcy and Insolvency Act since your first filing. Two key differences include the eligibility for an automatic discharge for second-time bankrupts and a potential obligation to make surplus income payments.
3. Automatic Discharge
If you have fulfilled all your responsibilities under the Act and no objections have been made to your discharge, you might qualify for an automatic discharge. For second-time bankrupts, this discharge could come after 24 months, or 36 months if there’s an obligation to make surplus income payments.
4. Surplus Income Payments
The requirement to make surplus income payments is calculated using a formula set by the Office of the Superintendent of Bankruptcy. You can find detailed information about this here.
5. Impact on Credit Score
Keep in mind that a second bankruptcy will probably stay on your credit bureau record for 12 to 14 years from the discharge date. This could make obtaining credit post-bankruptcy quite challenging.
6. Professional Help
Navigating through the bankruptcy process can be complex and stressful. Don’t hesitate to reach out to professionals who can guide you through the process. You can contact one of our offices to set up a meeting with our estate administrators or trustees.
7. Initial Discussion
Your initial interview with our professionals will be free of cost and without obligation. During this discussion, you can present your situation, ask questions, and explore the best course of action.
8. Conclusion
Bankruptcy is a significant decision that can have far-reaching impacts on your financial future. It’s crucial to understand the implications fully before making a decision. This guide aims to provide you with comprehensive information on filing for personal bankruptcy for the second time. It’s highly recommended to seek professional advice to navigate through the bankruptcy process effectively.
