Second Bankruptcy
January 1st, 2007 by Questions
I need to know how will a second bankruptcy effect my ability to obtain future credit. I was put out of business by changes made within proviencal regulations, and remain unable to pay off the credit cards e used to run our business. We need to move on but do not want to put yourselfs in a no win position.
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January 02, 2007 at 4:15 pm, Barton Goth, GCO Inc. Bankruptcy Trustees said:
The consequence of filing bankruptcy a second time is two fold:
1. You are not eligible for an automatic discharge so a court application will have to be made and you can expect the court will keep you in bankruptcy for an extended period of time (in Alberta the norm is an additional 12 months on top of the original 9, but you should discuss this with a licensed trustee in your area, he will be better able to advise you on the practice of your local courts); and
2. In terms of credit, you will have an R9 listed with the credit bureau for a maximum of 14 years from the time you are discharged from bankruptcy (obviously a significant period of time so this is often an incentive for people to consider filing a consumer proposal as opposed to a second bankruptcy).