Under Canadian bankruptcy law, a first bankruptcy lasts for a minimum of nine months. A second bankruptcy lasts for a minimum of 24 months (2 years). If you have surplus income, a second time bankruptcy will extend for 36 months (3 years).
A first bankruptcy appears on your credit report for a minimum of six years from the date of discharge. The current practice of Equifax, the largest credit bureau in Canada, is to report a second bankruptcy on your credit report for 14 years.
If you are considering filing a 2nd bankruptcy, you should consider your options to determine if it’s possible to avoid a second bankruptcy. If you can repay the debts on your own, or get a debt consolidation loan to deal with your debts, that may be a preferable option.
A more viable option may be a consumer proposal. Your creditors may be willing to accept a plan where you repay a portion of what you owe over an extended period of time, allowing you to avoid a second time bankruptcy. A consumer proposal administrator can advise you on the terms your creditors are likely to accept.
If a second bankruptcy is your only option, you should ask your trustee to explain in detail the projected costs so that you understand the costs and your obligations, to ensure that your second time bankruptcy is completed as quickly as possible.
Contact a trustee today if you think you need to file bankruptcy a second time. You may have better options.