I Filed Bankruptcy once Before, Should I Think about a Consumer Proposal Now?

If you’ve had financial difficulty in the past, and filed bankruptcy, it may not be a great option to file bankruptcy again. We’ll explain how the costs of a repeat bankruptcy may mean a consumer proposal may be the wiser choice.

A second bankruptcy is a more difficult and expensive process.  The fees in a second bankruptcy alone can amount to several thousand dollars, and you will be in the process for at least two, in many cases, three years.  In addition to that, the fact you filed bankruptcy a second time will show up on your credit report for at least fourteen years.

A third bankruptcy (which is more common than you’d think) requires a Court hearing – you will have to appear in Court and explain the circumstances of your various bankruptcies, and then the Court will decide how long you stay in bankruptcy.

So, if you find yourself in some difficulty, and you’ve been down that road in the past, it may make sense to consider a consumer proposal as an alternative to a repeat bankruptcy.  It also gives you the opportunity to repay a larger portion of your debt  over a longer period that turns out not to be much longer than a second or third bankruptcy.

We know that things happen. Repeat insolvencies are not as uncommon as you think. Our experts won’t judge you and we offer a free, initial consultation. Let us help you learn if a consumer proposal is right for you.

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