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Can I Claim bankruptcy Twice?

Can I claim bankruptcy twice?

Yes, you can claim bankruptcy twice or for a second time.  The process is the exact same as your first time except that it takes longer to be discharged from bankruptcy.

A first time bankrupt is discharged 9 months after declaring bankruptcy while a second time bankrupt is discharged 24 months after declaring bankruptcy.

The length of a first time bankruptcy is extended by 12 months if the bankrupt has Surplus Income and that same rule applies to a second time bankrupt.  Therefore, a second time bankrupt with Surplus Income will take 36 months to be discharged from bankruptcy.

Nothing else changes except that a second time bankrupt’s discharge has a higher chance of being opposed by a creditor.  For instance, if the Canada Revenue Agency was your primary creditor in your first bankruptcy, and will again be your primary creditor in your second bankruptcy there is a higher chance that they make ask the court to extend your bankruptcy even further.  While this is an unlikely scenario, the risk is higher for those who have claimed bankruptcy twice.

If you’re in a difficult financial situation for the second time we’re here to help.  Contact us to have your situation reviewed and your options explained.  Having claimed bankruptcy once before doesn’t preclude you from benefiting from the same bankruptcy process that you utilized once before.  Give us a call.

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