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 proposal may be a better option.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.