What happens if you declare bankruptcy a second time?

November 25th, 2019
What happens if you declare bankruptcy a second time?

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WHAT HAPPENS IF YOU DECLARE BANKRUPTCY A SECOND TIME?

There are three main issues that second bankruptcies affect differently than the first, discharge time, cost, and credit report duration

Discharge Time:

  • If you declare bankruptcy a second time, the automatic discharge time goes from 9 months to 24 months (if there is no surplus income).
  • If there is surplus income the second bankruptcy extends the automatic discharge time from 21 months to 36 months

Cost:

  • In the event of a second bankruptcy, the cost of the bankruptcy will increase.

Cost:

  • First time bankruptcies stay on your credit report for 6 years, however the second time around, the bankruptcy will stay on your report for 14 years

    • If at all possible, avoiding a second bankruptcy is ideal. A great potential alternative is a consumer proposal which would allow you to avoid a bankruptcy as well as provide a solution for your money issue.