Can I Claim Bankruptcy a Second Time?

Can I Claim Bankruptcy a Second Time?

Yes, you can declare personal bankruptcy even if you have been bankrupt in the past as long as you have been discharged and meet the following criteria:

•              you are unable to meet your regular payments as they fall due; •              you have ceased making your payments as they generally come due; or •              your assets, if liquidated, would not provide sufficient funds to fully pay all of your debts.

As a second time bankrupt you will be eligible for an automatic discharge after 24 months as long as you do not have surplus income,comply with all of the terms and cooperate with your trustee in the administration of the estate.

If you have surplus income you will be bankrupt for 36 months or until you have satisfied the surplus income requirements.

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.

A second bankruptcy will reflect on your credit report for a period of 14 years so negotiating a settlement through a consumer proposalmay be a better option.

For a free consultation over the phone or in person in Saint John, Moncton, Fredericton or Charlottetown, please contact us.  Powell Associates Ltd. is alicensed insolvency trustee focused on providing debt settlement, proposal and bankruptcy solutions for individualsandbusinesses.