Quick answer – there is no mandatory waiting period.  In order to file a second bankruptcy, you must be discharged from your first bankruptcy, owe more than $1,000 and be insolvent.

A second bankruptcy will differ from your first bankruptcy in the following ways:

  • You will be eligible for an automatic discharge in 24 months if you are not required to make surplus income payments and 36 months if you are required to make surplus income payments.
  • You will be obligated to submit Monthly Income and Expense reports to your trustee until you are discharged from bankruptcy.
  • The trustee will average your income over the 22 months following your voluntary assignment in bankruptcy to determine if you are required to make surplus income payments. A single individual with income in excess of $2,442 will be required to make surplus income payments of 50% of the excess.  You should consider the likelihood of your income increasing in the next 22 months and the potential impact on surplus income payments.
  • GST credits will be forwarded to your trustee until you are discharged.
  • Your trustee can realize on any assets that you are entitled to receive between the filing for bankruptcy and your discharge. If you win a lottery or become entitled to an inheritance, you are obligated to advise your trustee, who will seize the funds.
  • A second bankruptcy will remain on your credit report for 14 years from your discharge.
  • If minimal time has passed between the filing of your first and second bankruptcy, your creditors or the Office of the Superintendent of Bankruptcy may oppose your discharge.

The initial assessment to review your financial situation in detail and explore debt relief solutions is free of charge at Taylor Leibow Inc.  The assessment is currently being performed in person (with the necessary safety protocols) or via telephone.  We will ensure you are fully aware of the bankruptcy process so you can make an informed decision if a second bankruptcy is the best solution for you.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)