October 11th, 2011 by Questions
Have the laws changed regarding a second bankruptcy. What should I expect? I did not think I would be here again. Thanks
Posted from: Alberta
One Response to “Second bankruptcy”
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October 11, 2011 at 5:07 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
There are some rather significant changes to the bankruptcy the second time around. The biggest change is that of length, a second time bankruptcy will last between 24 and 36 months depending on your income. So you have to be prepared for this. The second change is in length of time that your credit is impacted. With a first time bankruptcy you see an R9 listed for 6 years from discharge. With a second time bankruptcy you see an R9 listed for 14 years from the date of discharge. So a dramatic difference.
The rest of the process is similar (i.e. monthly statements, impact on taxes, provincial exemption laws, counselling sessions). But is is the duration of the bankruptcy and increased damage to a credit rating that often leads people to seriously consider filing a consumer proposal as opposed to repeating a bankruptcy.