How Many Times can I Declare Personal Bankruptcy in Ontario?

| Category: Bankruptcy in Ontario | Bankruptcy FAQ
Category: Bankruptcy in Ontario | Bankruptcy FAQ | (2) comments

While there is no provincial law that lays down how many times an individual might declare bankruptcy in Ontario, it’s important to note the repercussions with each subsequent filing.

affects declaring bankruptcy multiple times in ontarioIt Takes Longer and Costs More

Where a so-called “second-timer” used to have his discharge granted by the courts, one must now wait a full 24 months for a trustee to grant his automatic discharge (36 if he has surplus income payments), no visit to the courts necessary.

New rules have upped the ante for returning bankrupts considerably. As a rule of thumb, know this: the more bankruptcies, the harsher the penalties, to the point of a repeat offender being denied discharge altogether (in severe instances or multiple bankruptcy filings).

Court Attendance Required For 3rd Bankruptcy

After a third trip down this path, a bankrupt is required to attend bankruptcy court, file in hand, to receive his discharge blessing. And the process doesn’t always unfold without hitches. The terms of a third discharge (or more) could outline a requirement for further payments or an extension to the duration of the bankruptcy.

Credit Report Affected

More than that, the shadows of second-time bankruptcies linger on your credit report for twice the length of time first-time bankruptcies do.

The price to pay levied on individuals returning to the bankruptcy option for a second time or more are sometimes severe enough to deter them from doing so. As such, it’s always a good idea to sidestep a second bankruptcy, if at all possible. Better to explore other, less unfavorable, costly and far-reaching alternatives, such as considering a consumer proposal in Ontario.

To explore your options contact a local bankruptcy Ontario trustee today.

Leave A Comment

  1. Laura C.

    I am in a consumer proposal and have already had two previous bankruptcies and due to my current situation I am having a hard time with all my current payments due to COVID and my situation, is there anything I can do?

    1. J. Douglas Hoyes, Trustee

      Hi Laura. Yes, you should immediately contact your trustee to discuss your options. One possible option would be to file an amendment with your creditors, asking for a revision to the original proposal, to lower your payments. There is no guarantee that your creditors would accept, but that would be the most logical next step.


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