How Many Times Can An Individual File Bankruptcy?

How Many Times Can I Go Bankrupt?

Are you contemplating bankruptcy for the second time or more? Are you concerned about the ramifications of multiple filings? This guide will address all your queries about how many times an individual can file bankruptcy.

Bankruptcy, a legal process that provides relief to individuals or businesses that can’t pay their debts, is generally considered the last resort. In certain situations, however, filing for bankruptcy multiple times might be the most viable option.

Filing a Second Bankruptcy: Is It Possible?

Yes, you can file for bankruptcy more than once. The fundamental requirement is that you must have been discharged from your previous bankruptcy. Statistics show that approximately 10% of bankruptcies in Canada involve individuals who have had to file more than once.

Consequences of Filing a Second Bankruptcy

Filing for bankruptcy multiple times can have long-term repercussions. The process tends to become more restrictive with each subsequent filing.

Duration of Bankruptcy

A second-time bankruptcy generally lasts between one to three years, dependent on your surplus income. This is longer than the nine months for a first-time bankruptcy.

Credit Impact

A second bankruptcy can stay on your credit report for up to fourteen years, twice as long as a first bankruptcy. This can affect your ability to secure credit in the future.

How Often Can You Declare Bankruptcy?

Technically, there’s no limit to how many times an individual can file bankruptcy. However, the process becomes increasingly restrictive and complicated with each filing.

Consider the case of a third bankruptcy. Here, you’d have to attend a discharge hearing in a bankruptcy court, explain your reasons for multiple filings, and the court would then decide on your discharge. This may involve additional conditions, including extra payments.

Engaging a Licensed Insolvency Trustee

A Licensed Insolvency Trustee (LIT) can provide invaluable support if you’re contemplating multiple bankruptcies. LITs are the only professionals in Canada legally able to administer all types of debt relief.

Role of A LIT

An experienced LIT can review your financial circumstances, consider other options available to you, and offer advice on the best pathway to financial freedom. They can also help with credit rebuilding after bankruptcy.

Filing a Subsequent Bankruptcy

Filing for a second or subsequent bankruptcy is a serious decision. If you’re considering this path, your first step should be to consult a trusted Licensed Insolvency Trustee.


If you decide to proceed with a subsequent bankruptcy, your LIT will guide you through each step of the process. This includes preparing and filing the necessary paperwork, dealing with creditors, and advising on how to manage your finances during bankruptcy.

Bankruptcy Alternatives

Sometimes, alternatives to bankruptcy such as a consumer proposal might be more suitable. Your LIT can advise you on the most appropriate course of action based on your unique financial situation.

Final Thoughts

While it’s possible to file for bankruptcy multiple times, it’s not a decision to be taken lightly. If you find yourself in a situation where you’re considering bankruptcy, consulting with a reputable Licensed Insolvency Trustee is critical.

Remember, how many times an individual can file bankruptcy is less important than finding a sustainable solution to your financial challenges. With the right support and advice, you can take control of your finances and embark on the path to financial freedom.

Need More Information?

If you’re still unsure about how many times can an individual file bankruptcy, don’t hesitate to reach out for a free consultation with a reputable Licensed Insolvency Trustee. They can provide advice tailored to your unique financial circumstances and guide you through each step of the debt relief process.

So, if you’re contemplating bankruptcy, take the first step today. Your financial freedom might be just a phone call away.

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