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2nd time bankruptcy

what happens if you claim bankruptcy a second time. its been about 18 years since the first time.

Posted from: Manitoba

One Response to “2nd time bankruptcy”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

The particulars of this will depend on the court in your local jurisdiction, so you are best to contact a local trustee directly.

But normally the major differences are as follows:

1. Not eligible for automatic discharge so a court date is set to request a discharge;
2. The court will review your situation and determine if there is a need to put a penalty in place due to this being a second time scenario (although in my jurisdiction this is only an issue if your previous bankruptcy was less than 10 years ago);
3. As a result of a second bankruptcy you will have an R9 listed on your credit history report for a maximum of 14 years from the date you are discharged.

Now as a result of all this I normally recommend people consider the filing of a consumer proposal as opposed to a second bankruptcy, so you may want to discuss with the trustee you contact how a proposal can help to reduce some of the negatives associated with a second bankruptcy.