Have You Ever Wondered How Often a Person Can Declare Bankruptcy

November 15th, 2022
Have You Ever Wondered How Often a Person Can Declare Bankruptcy

Have you ever wondered how often a person can declare bankruptcy? You may have already filed for bankruptcy and now find yourself once again in a position where you face crushing debt and see no way out.

This article addresses the question, "How often may a person file an assignment in bankruptcy?"   As a respected Licensed Insolvency Trustee in London, Ontario, Paul J. Pickering, and Associates Limited and our team will assist you regardless of how dire you believe your financial situation to be. There is always a way to achieve financial independence and we are here to help you find it and get you through it.

Can A Second Bankruptcy Be Filed?

When financial burdens become insurmountable, bankruptcy is frequently viewed as the best last choice to start over again.  As every situation involving a person’s finances is unique, where circumstances have changed and for that reason, going bankrupt again may be the only way out; and YES, it is possible for you to file a second bankruptcy.  In fact, approximately 10% of Canadians who filed for bankruptcy previously have reason to file bankruptcy a second or third time.

In addition to relieving you of the terrible stress of a crushing debt load and stopping those non-stop telephone calls from creditors, the Bankruptcy and Insolvency Act (BIA) offers an efficient and organized remedy for you.  These remedies start immediately when you file bankruptcy as the Trustee will notify your creditors and tell them that a “stay of proceedings” is in effect.  This “stay” stops & restricts creditors or collection agencies from contacting you and/or initiating or continuing legal collection action(s) including the garnishment of wages, commissions, or bank accounts.

It is natural for people to be concerned about filing a second bankruptcy and as every situation is different, making this choice is not simply because of the size of your debt, but whether you meet the definition of an insolvent person according to the BIA.   It is very important too that you have completed and been discharged from your first bankruptcy before you are eligible to file for a second bankruptcy.

What Are The Repercussions Of A Second Bankruptcy Filing?

What if you need to file for bankruptcy again?  A second bankruptcy filing means that you are not eligible for an automatic discharge/release in nine (9) months, and instead, a second bankruptcy will extend for twenty-four (24) months. But just because the process is longer, doesn’t mean that it’s not the right decision and solution to help you obtain your fresh start.

Filing a second bankruptcy will also impact your credit bureau score, and remnants of bankruptcy-affected creditor records will remain on your credit bureau file for fourteen (14) years after your discharge from bankruptcy.

How Many times can One Declare Bankruptcy?

There is no limit on how many times a person can file an assignment in bankruptcy, but you should know that a third or more bankruptcy event will become increasingly restricted, have higher consequences, and requires a personal Court appearance.  A third time (or more) bankruptcy requires the bankrupt to appear in Court for a Discharge Hearing.

The Court may ask you or the Trustee to explain your insolvency history and what brings you to having filed a third (or more) times.   The judge will then accept recommendations and decide if you are eligible for discharge or set a date for discharge/release and may even order you to make additional payments as a condition of being discharged/released.

If you feel that you must file for bankruptcy, you should contact Paul J. Pickering and Associates Limited in London and speak with one of our insolvency experts about options to assist you.  Our Licensed Insolvency Trustee & Administrators can guide you through every stage of the debt relief process including a compromise of the debt using a consumer proposal.


The choice to file for a second or subsequent bankruptcy should not be made lightly, however, this option exists to help honest and unfortunate people get back on their feet. If you’re looking for help with debt and your ongoing payments or if you want to review your options and learn about consolidation loans, debt management programs, credit counselling, financial counselling, proposals, consumer proposals, and bankruptcies, we at Paul J. Pickering and Associates Limited are here to help you.

We have over 30 years of experience in helping our clients resolve their financial problems. We specialize in debt management, and proposals. consumer proposals, debt counselling, and bankruptcy in London, Ontario.  Whether you’re starting to get overwhelmed and you don’t know how to handle your debts and minimum payments, contact our office today for your free initial consultation, and we’ll put together a plan that will work for you.