Is It Possible to File for Bankruptcy More Than Once?
The idea of filing for bankruptcy is to get a fresh start and put your financial difficulties behind you to regain financial stability for the future.
It is possible to find yourself in a challenging situation and the need may arise to file for bankruptcy a second time. While not ideal, it is possible – and in fact, it’s not uncommon for debtors to file for bankruptcy more than once in their lifetime.
The Consequences of Multiple Filings
The first time a person files for bankruptcy, it will take between 9 months and 21 months in order to receive a full discharge, depending on the amount of surplus income they have. A second bankruptcy will take much longer – between 2 and 3 years for a full discharge.
In addition to the lengthy wait for discharge, it can take considerably longer to be able to get approved for any kind of credit. While original bankruptcies can take as much as 7 years to disappear from the credit bureau’s reporting systems, a second filing can take twice as long. This can impact your ability to rebuild your credit.
Consider the Alternatives
Filing for bankruptcy for a second time may be the best solution for you, but given the serious consequences involved, it’s important to consider whether this is your best option. A Consumer Proposal may be an excellent alternative to bankruptcy. When you file a Consumer Proposal, it is a binding agreement that you will pay your creditors, but with some more flexible terms. The amount owing may be significantly reduced, and no further interest charges are accrued. Regardless of the settlement that is made with your creditors, once it is accepted, you can no longer be harassed for payments and your wages will be protected from being garnisheed. Once the Consumer Proposal is paid in full, it will come off the credit bureau in as little as 3 years.
Seek advice from a Licensed Insolvency Trustee
Your Licensed Insolvency Trustee should be your first stop in addressing financial concerns. They will conduct a full assessment of your debts, assets and income, and provide sound advice as to the most appropriate way to get you back on track.
If you are a past bankruptee that has found themselves once again experiencing financial hardship, don’t despair. Contact D. Thode & Associates for a consultation today to see how we can help