Can I Claim Bankruptcy a Second Time?

Yes, you can declare personal bankruptcy a second time, as long as you have been discharged from your first bankruptcy and meet the following criteria.

• you are unable to pay your debts as they become due;

• you have ceased making your payments as they generally come due; or

• your assets, if liquidated, would not provide sufficient funds to pay all of your debts in full.

If you don’t have surplus income, comply with your duties and cooperate with your trustee on other estate matters. You are eligible to be discharged from your second bankruptcy, after 24 months.

The following are some of the duties of a bankrupt:

• Complete two mandatory financial counselling sessions with a Licensed Insolvency Trustee office;

• Report your monthly take-home income to your Licensed Insolvency Trustee office for at least 22 months.

If you have surplus income, you will be eligible for discharge after 36 months or when all your required surplus income payments have been paid.

A second bankruptcy will be recorded on your credit report for 14 years.  

If this is your second time experiencing financial difficulty, you should consider filing a consumer proposal rather than a second bankruptcy.  The consumer proposal will only be recorded on your credit report three years after the consumer proposal is completed.

A third time bankrupt is not eligible for an automatic discharge. Your trustee will have to apply to the Court for a bankruptcy discharge hearing.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of major financial stress; 

• You won’t be stuck in an assembly line process. 

• You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.  

• We will review your debt solution options, including filing a consumer proposal or personal bankruptcy. 

• We help Canadians with overwhelming debt get fresh financial starts.  

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.  

We offer free consultations to review your financial situation and practical debt resolution options. Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.