Length of a 2nd Bankruptcy
According to bankruptcy regulations in Canada, the shortest time for an initial bankruptcy is a period of nine months.
For second bankruptcy occurrences, the timeline is far longer and lasts for at least two years.
In the event that you have supplemental revenue, the bankruptcy can extend for another twelve months.
The duration for which a bankruptcy is apparent on your credit report differs based on whether it is your first or second bankruptcy.
Initially, the status appears on your profile for at least six years from the time your bankruptcy is discharged.
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
Based on current trends, the second bankruptcy will remain on your file for at least 14 years.
Since going bankrupt represents a credit flaw, this can make it more challenging to access certain loans, or to get an amenable rate on mortgages – even with a co-signer.
In order to avoid another bankruptcy filing, and the subsequent 14 years of damaging credit reports, there are other options to consider.
Prior to pursuing bankruptcy, consider first a consumer proposal.
Effectively, this is approaching your creditors with a new plan of action to allow you to pay a portion of your debt amount.
Conducted over a new length of time, this lets consumers in large amounts of debt to pay significantly less than they otherwise would have to and also avoid going bankrupt.
When developed under the purview of a Licensed Insolvency Trustee, the proposal can be on terms amenable to both creditors and consumers.
Once you consult with a skilled trustee, you can gain a better understanding of the options available to you.
Whether bankruptcy or proposals are your ideal course of action depends on your specific situation.
A licensed trustee will help you understand the steps to take in order to manage your debt.
Canadian Bankruptcies
How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?
