Potential second bankruptcy and what to do when…?

April 5th, 2010 by Questions

What`s the best choice here? Alright lets level…I`m 37, and recently I have disovered why i can`t move ahead in life, basically there`s 4 of me (8y/o, 13y/o, 17 y/o, and the big protector who`s an adult) now the adult ONLY comes out when the other 3 feel damaged. Aside from that, your basically dealing with a 17 y/o who`s never learned responsiblity, which is why the first bankruptcy wasn`t learned from. I am currently in pscyhological therapy for it, so the younger me`s grow and develop and learn to be responsble, however. How would this affect a potential bankrupty now? And what is the aftermath gonna look like? Could the length of time be shortened to less than 14 years? Is this a wise decision….?

Posted from: Ontario


One Response to “Potential second bankruptcy and what to do when…?”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The psychological conditions really won’t have any impact on the filing of a second bankruptcy.

With a second bankruptcy you will find the length of the bankruptcy is longer (either 24 or 36 months, depending on your level of income), and your are correct that impact on your credit is increased so that you will have an R9 listed with the credit bureau for 14 years from your date of discharge.

At the end of the day there is nothing that you can do to change the length of the bankruptcy or the impact on your credit, you work to re-establish your credit, but this is no different than after a first filing.

In terms of whether this is a wise decision, as I am not familiar with your situation I am not in a position to be able to advise you of this. What you should do is contact a local trustee, they will review things and then be able to advise you whether a second bankruptcy makes sense. The one thing to consider is that you can avoid some of the more severe consequences of a second bankruptcy by filing a consumer proposal, but this is something the trustee will be able to discuss with you in more detail.

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