Filing for Bankruptcy a Second Time

Second Bankruptcy Filing Canada

Yes, it is possible to file bankruptcy twice in Canada provided that you have received your bankruptcy discharge from the first bankruptcy filing. If you have not been discharged from your first bankruptcy you will have to petition the Bankruptcy Court for your discharge in order to file a second bankruptcy. In fact, you can even file for bankruptcy a third time in Canada. Fortunately, for most individuals filing for bankruptcy only happens once in their lifetime. When you file bankruptcy you will be given the skills needed to manage your finances successfully. However, things can happen and if you are facing money problems again our trustees have helped many people like you file bankruptcy a second time. About 10% of personal bankruptcies are a second time filing.

Consequences if you file Bankruptcy Twice in Canada:

Your second bankruptcy will be more complicated than your first bankruptcy and will take longer and be more costly. If you file bankruptcy twice in Canada you will be eligible for your bankruptcy discharge in 24 months instead of 9 months, or if you have surplus income payment requirements your second bankruptcy will last for 36 months. Because you are required to pay each month you are in bankruptcy the cost of bankruptcy will increase for a second time bankruptcy. A bankrupt will still be eligible for an automatic bankruptcy discharge in a second bankruptcy. When you file for bankruptcy twice the record of your bankruptcy will last longer on your credit report as well. While a first bankruptcy filing will remain on your credit report for up to 7 years, a second bankruptcy will stay on your credit report for up to 14 years.

What if I Need to File Bankruptcy a Third Time?

Filing bankruptcy three times is possible although you will not be eligible for an automatic discharge if you have filed a third bankruptcy. You will have to attend a discharge hearing in order to receive your bankruptcy discharge, and the court will have to make a decision on whether to grant you a discharge. Additionally, you will be questioned and have to explain why you needed to file bankruptcy a third time and the court will impose strict conditions on granting your discharge, if they even grant you a discharge at all. You want to avoid a third time bankruptcy at all costs.

Consider Your Alternatives

While it is possible to file more than one bankruptcy in Canada you might want to explore other bankruptcy alternatives because the cost and length of bankruptcy will be much more when you are filing bankruptcy for a second or third time. A consumer proposal allows you to avoid bankruptcy but receive a solution to your money problems. If you are facing bankruptcy a second time, you might want to think about filing a consumer proposal as being a second time bankrupt is more serious than the first time around. When you go bankrupt a second time, the length of your bankruptcy will be longer, 21 months at least, and will cost more and increase your monthly bankruptcy payment. Additionally, a second bankruptcy has a more serious impact on your credit score, and a record of it remains on your credit report for 14 years (as opposed to 6 years). Schedule an initial consultation with us today to see if you can avoid bankruptcy a second time.