Bankruptcy Discharge for The Second Time
Technically, there is no limit to the number of times that you can file an Assignment in Bankruptcy. The practical issue is that after the first bankruptcy, it gets harder to get discharged from the bankruptcy. In a second bankruptcy, you are still entitled to an automatic discharge but the minimum period of time is increased from 9 months in a first bankruptcy to 21 months. If you have surplus income, the minimum period until you are discharged is 36 months. Simply stated, the second bankruptcy takes longer to finish and is more expensive than the first bankruptcy.
If there are any circumstances in the second bankruptcy that causes the trustee, a creditor or Office of the Superintendent to oppose you automatic discharge, the court will not look kindly on the fact that this is a second time bankruptcy. This is especially true if both bankruptcies have a similar cause. It is for this reason that your trustee (for your 2nd bankruptcy) will ask you for copies of the documents from your first bankruptcy. Your trustee will want to be very explicit in describing the cause of your 2nd bankruptcy. It may be a hassle for you to find your old papers, but your trustee is only trying to help you. About two months before your discharge, your trustee is required to write a report* in which he describes what he has found during his administration of your file. In this report, the trustee must recommend that you receive an automatic discharge or he is required to oppose your discharge which may result in an appearance in court by yourself.
* Report on the Bankrupt’s Application for Discharge is required under Section 170 of the Bankruptcy and Insolvency Act. It is often simply called the “170 report.”
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.