2nd time around

February 5th, 2010 by Questions

my husband filed for bankrupcy in 2003 due to large tax debt, he has now gotten himself in the same trouble . How hard is it to file a second time and is it the best solution as his debt is over 70,000 and he is a trades man an it would take 3 years to pay off with present salary

Posted from: Ontario


One Response to “2nd time around”

, A licensed trustee said:

The law allows for a second bankrupcy filing – it will run longer and therefore cost significantly more than your husband’s fist bankruptcy.

As of Sep 18, 2009, someone filing bankrptcy for the second time is required to make payments into their estate for 24 months. If the household income where they live exceeds the government standards for the number of people in the household, then the bankruptcy will be extended to 36 months.

A word of warning since you are from Ontario – if your husband ends up in Court at the end of his bankruptcy then it is likely he will be ordered to repay a significant portion of his tax debt (anywhere from 20 to 50% of the taxes he owes). This isn’t part of the law, but it is how the Courts in Ontario treat people that don’t pay their taxes in a second bankruptcy. If you want to avoid this penalty then make certain your spouse performs all of his duties properly if he decides to file bankruptcy a second time.

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