Question: What happens after a second bankruptcy in Ontario and how common are they? Can you ever get credit after a second bankruptcy?
Answer: Exact statistics are not available, but experts estimated that over 10% of all people who declare bankruptcy will do so more than once.
In a first bankruptcy in Ontario you are eligible to receive an automatic discharge after nine months, if you have completed all of your duties, and if no creditor objects.
In a second bankruptcy in Ontario (the rules may differ in other provinces) a discharge hearing is held in Bankruptcy Court, and the bankruptcy judge or Registrar will determine how and when your bankruptcy will end. Since it takes time to schedule the court hearing, a second bankruptcy will last for at least 12 months, and 21 months is not uncommon.
It is possible to get credit after a second bankruptcy, although it is more difficult. According to Equifax, “If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge”.
If you believe you will need to declare bankruptcy in Ontario for a first or second time, you should consult a licensed Ontario bankruptcy trustee to explain the process in detail, so you can decide whether or not bankruptcy is the correct option for you.