Are you considering filing bankruptcy a second time? There are additional implications of a second or third bankruptcy.

How long will a second bankruptcy last?

A second bankruptcy will last longer and as a result will cost more.

  1. A second time bankrupt with no surplus will get an automatic bankruptcy discharge after 24 months (unless opposed)
  2. A second time bankrupt with surplus will get an automatic discharge after 36 months (unless opposed)
  3. If this is your third bankruptcy, you are not eligible for an automatic discharge. Your bankruptcy trustee will need to apply to the bankruptcy court for an application for discharge hearing.

What about your credit report?

While a first bankruptcy will remain on your credit report for six years after discharge, this is extended to 14 years for a second bankruptcy.

Consider a Consumer Proposal

An option may be to avoid bankruptcy by filing a consumer proposal.

As an alternative to bankruptcy, a consumer proposal will remain on your credit for 3 years after completion and you can spread your payments out over a period of up to 5 years.

At Hoyes, Michalos we offer everyone a FREE, no obligation, professional consultation in all our Ontario locations.

Our licensed experts will review the details of your individual situation and help you decide if a second bankruptcy or consumer proposal is the right debt relief option.

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