Second Time Bankrupt – Two rents & the future
March 26th, 2014 by Questions
I am looking into bankruptcy for my father-in-law who has fallen deep into debt. He pays two separate rents; the first where he works and also half of the rent on our place. How is having two rents going to look if he files? Will they say he has to leave this house or the other, as in giving him an ultimatum.
Second, what kind of future would he have as a second time bankrupt? He filed a long time ago but I’ve been doing his finances and don’t know if he can make it out.
Let me know if you have any questions and thanks in advance for the help.
Posted from: British Columbia
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March 26, 2014 at 6:28 am, Gareth Slocombe, Trustee | C.I.R.P | C.A said:
There is no restriction regarding paying rent(s) in a bankruptcy. I assume he is paying rent where he resides and also where he carries on business. That is his choice and will always depend on his budget. His second bankruptcy will be either 24 months or 36 months if he has surplus income. That is determined based on his net income which, in this case may include his self employed income after business expenses such as business premises rent. For a single person the threshold is currently $2,006. He would be required to pay 50 % of his net income above that level to the trustee for his creditors. A second bankruptcy will show on his credit report for a period of 14 years after his discharge but it is still possible to re-establish credit during that time.