Filing bankruptcy for a second time is not only longer, but it’s also more expensive. This is especially true for individuals with surplus income, a threshold set by the government for the amount of income necessary for each household to maintain an acceptable standard of living. For those that earn above this amount, the difference is considered additional money that can be applied to your debts. Visit our surplus income calculator to find out whether you fall above or below the pre-determined income limits.
The chart below demonstrates the differences between a first time and second time bankruptcy both with and without surplus income. The costs shown are approximate values that can differ for each individual.
| No Surplus Income | Surplus Income | |
| First Bankruptcy | $200 a month for 9 months. | $200 a month for 21 months. |
| Second Bankruptcy | $200 a month for 24 months. | $200 a month for 36 months. |
For Example:
A family of three with a combined net monthly income of $3,746 would have $500 surplus income according the government’s set threshold of $3,246.
| Income | $3,746 |
| Government threshold for family of three | $3,246 |
| Surplus (the difference) | $500 |
| Required bankruptcy payment (half of surplus) | $250 |
This means that they would be required to make a payment of $250 per month for 21 months in a first time bankruptcy, totaling $5,250. In a second bankruptcy, this same family is required to pay that $250 over 36 months due to their surplus income, totaling $9,000.
It becomes clear that filing for bankruptcy a second time is longer and more expensive, especially if surplus income is included. If you are thinking about filing a second bankruptcy it is important to consult a local Trustee in Bankruptcy to discuss the length and cost of filing and whether a consumer proposal might be a more viable debt solution the second time around.
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