Filing For Bankruptcy A 2Nd Time

Yes.....some of the legislation has changed since your first bankruptcy in 2002. If an individual files for bankruptcy a 2nd time, they will be eligible for an automatic discharge after either 24 or 36 months, so long as they comply with all of their duties. Prior to September 18, 2009, all multiple bankrupts had to have their discharge heard by the Courts. The determination of whether or not you would be a 24 or a 36 month bankrupt will depend on your surplus income calculation. Surplus income is a payment that you would be required to make into your bankruptcy, and is it calculated based on your net income, the number of people in your home, and whether or not you have any allowable expenses which the Superintendent of Bankruptcy allows us to deduct in calculating your net income. Some of the exemptions have also changed since 2002.  Exemptions are the list of assets that you get to keep in your bankruptcy, some of which are federal and some of which vary by province. The other thing that will change is the length of time that the bankruptcy will remain on your credit report.  While a first time bankruptcy will stay on your credit report for 6 years from your discharge date, a 2nd time will stay on there for 14 years. Donna Carson, CGA, CIRP, Trustee 1.877.500.0792      donna.carson@mnp.ca