Question: Our debt problem has gotten intolerable again. Our first bankruptcy was 10 years ago. Due to my husband’s health his salary has been decreased and our debt load is not manageable. How does the court look at a 2nd bankruptcy or is consumer proposal our only option?
Second Time Bankruptcy Implications
A second bankruptcy is more difficult than a first bankruptcy. In a first bankruptcy in Canada, you may be eligible to be automatically discharged after nine months. A second bankruptcy will last longer. In a second bankruptcy the earliest you may be discharged will be 24 months. If you have surplus income your 2nd bankruptcy can last as long as 36 months (or longer if a creditor objects to your discharge). As a result, second bankruptcies can last for two to three years, depending on the circumstances. Therefore, a consumer proposal is often a good alternative to a second bankruptcy.
However, your family income and other factors are also important. Based on your comments you may not be able to afford a proposal, so a bankruptcy may be necessary.
Every situation is unique. It is important to talk to a licensed trustee in bankruptcy about your options so you make the right decision. Contact a professional bankruptcy trustee and request a no-charge initial consultation to review your situation in detail, so that you can review your options and decide which option is best for you and your family.