How Many Times Can I Declare Personal Bankruptcy in Ontario?
Personal Bankruptcy in Ontario
Though there isn’t a legislation effective that dictates how many times you can declare bankruptcy, the ramifications are worse with each subsequent time you file.
The key consideration is that it takes more time and is more expensive each and every time you file.
Though the first bankruptcy can discharge within a nine month period, the next one will take as long as two years to discharge the bankruptcy.
In fact, it can take as long as 36 months if you have supplemental income payouts.
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Penalties for Multiple Filings
Bear in mind that modern rules have made it more difficult to file for bankruptcy additional times.
Basically, there is more penalty the more times you file.
In fact, if you file enough times, you can actually be denied discharge of the bankruptcy altogether, rendering it a permanent state.
When it comes to your third bankruptcy, you need to be present at a court hearing for the same.
Though this gives you an opportunity to present your case, it can actually result in more caveats on the bankruptcy itself.
Impacts on Credit
The more times you file, the longer the bankruptcy lingers on your credit profile.
The second bankruptcy stays on your account for twice as long as the first.
Additionally, the payment onus on those seeking multiple bankruptcies is much steeper than with a first.
Therefore, it is ideal to avoid bankruptcy as much as possible.
Instead, you can consider speaking with a licensed insolvency trustee and creating a consumer proposal.
The meetings are confidential and equip you with the information you need to restore your financial wellbeing.
It’s never too early or too late to pursue a better financial plan.
Reach out to a financial advisor to discover whether a consumer proposal is a suitable plan for your financial situation.
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