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.
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.