Yes, you can declare bankruptcy more than once. However, it's essential to note that the consequences and rules may vary for subsequent filings. The discharge period, which is the time it takes to be released from the obligations of your debts, will be longer for the second or subsequent bankruptcies. It's always recommended to consult with a licensed insolvency trustee to understand the specific nuances and implications of multiple bankruptcy filings.
Bankruptcy will have a significant impact on your credit score. When you declare bankruptcy, it's recorded on your credit report, signaling to lenders that you’ve previously been unable to meet your financial obligations. This can make it more challenging to obtain credit in the short term. Typically, a bankruptcy will remain on your credit report for seven years from the date of discharge in the case of a first bankruptcy. It's vital to understand that rebuilding credit is possible, and there are steps you can take post-bankruptcy to gradually restore your creditworthiness.
A consumer proposal is an alternative to bankruptcy. It’s a legally binding process where you negotiate to pay creditors a certain sum of money, generally less than what you owe, or extend the time to pay off the debts, or both. Here are some key differences:
Yes, you're typically allowed to keep certain "exempt" assets when you declare bankruptcy. The exact nature and value of these assets vary by province. For instance, in many provinces, assets such as necessary household furnishings, a primary vehicle up to a certain value, and tools of trade within specific limits are considered exempt. It's crucial to consult with a licensed insolvency trustee in your jurisdiction to get a precise understanding of what assets you can retain during bankruptcy proceedings.