Why does a previous Bankruptcy show up if you file a second time?

November 12th, 2009 by Questions

Why does a previous Bankruptcy show up on your credit file if you go Bankrupt a second time. I had gone bankrupt in 1981 and after my husband left me in 2002 and went bankrupt, I lost my home and he messed up my credit. I had no choice but to go bankrupt and at that time didn`t realize that my first bankruptcy would go against me until I filed bankruptcy again. Now, these won`t be cleared from my credit bureau for 14 years. Just wan`t to let people know that this happens. Also, I`m asking why this happens, when my understanding was that my 1st bankruptcy would have cleared from my record after 7 years?

Posted from: Nova Scotia


One Response to “Why does a previous Bankruptcy show up if you file a second time?”

, A licensed trustee said:

Filing bankruptcy once is a lot more common than people realize – about 12% of all Canadians will file for bankruptcy at some point during their lives. A second filing is quite a bit less common – less than 1% of all Canadians will have to file a second time.

The logic behind listing both is to disclose to your creditors that you are in that small percentage of Canadians that have had the misfortune of having to file more than once. Think of it as a warning to lenders that you’ve had unusually bad luck with your finances.

If you were a lender, don’t you think this is something that you’d want to know?

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