March 8th, 2009 by Questions
How many times can a person declare bankruptcy?
Posted from: Ontario
March 09, 2009 at 8:21 am, A licensed trustee said:
There is no legal limit to how many times a person may file for bankruptcy, but from a practical standpoint, every time you file it becomes more difficult to be discharged and of course it costs more money.
A first bankruptcy may be automatically discharged in 9 months. A second bankruptcy requires attendance in Court and will likely last 18 to 24 months. A third bankruptcy requires a detailed review of the first two bankruptcy by the Court and will likely run 24 to 36 months. Fourth bankruptcies generally result in a refusal – that is the Court won’t grant one.
You might want to consider whether or not you are able to file a proposal to creditors instead of filing for bankruptcy – at the very least it will keep you out of Court.
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