You have filed for bankruptcy once before and hoped that by using the skills you learned in your two credit counselling sessions, you would not find yourself in financial trouble again. Then something happened. Unexpected life circumstances often lead people to fall behind in their monthly payments and for someone who has had debt problems in the past, they are incredibly disappointed to find themselves in this situation again and may think that this time, there is nothing they can do because they have filed bankruptcy already.

In our corner of Ontario, one problem many local people here in Cambridge are facing are lay-offs from work. Both permanent or temporary. An unexpected event like this can catch many people unaware, especially at a time like the recent holiday season when we are more susceptible to the lure of using credit to make purchases for gifts to friends and family. Even having been through a previous bankruptcy, something as drastic as being laid off from work can put you right back into the thick of financial problems again.
It is absolutely possible to file bankruptcy more than once as long as your previous bankruptcy was discharged. If you did everything you were supposed to, handing in your monthly statements and expense reports and attending your two credit counselling sessions then there should not be a problem. When you arrange for your first meeting with the trustee, they will make sure that you have no outstanding filings that have not been discharged.
Although it is possible to file bankruptcy numerous times, the process gets more and more difficult. In your first bankruptcy, you were probably eligible for an automatic discharge which meant that after nine months, as long as you fulfilled your duties, your bankruptcy was over. For your second, third or fourth bankruptcy, you will no longer be eligible for automatic discharge and instead, will need to appear in court and they will decide what the conditions of the discharge will be.

You will be asked questions about the circumstances leading up to each bankruptcy and the amount of time between them and then will decide if you will have to wait a longer period of time or make some more payments in order for you to be discharged.
When you go bankrupt a second time, it will stay on your credit report for fourteen years instead of the seven your first bankruptcy did. For this reason and others, you might want to consider whether you can afford to file a consumer proposal instead.

If you are having debt trouble again and would like to find out more about your options, give me a call at 519-622-3773 or send me an e-mail and I can set up a meeting for an initial consultation at my office in Cambridge.