Can I file bankruptcy in Sarnia if I didn’t complete my first bankruptcy?

by Joel Sandwith on September 8, 2011

I had an interesting question emailed to me this morning – the emailer noted that he’d filed bankruptcy several years ago with another Trustee, and due to difficulty at the time was not able to complete the process.   By way of explanation there are a few ‘duties’  that are required to be completed in bankruptcy, such as providing monthly income and expense reports, attending two sessions of money management counselling, and providing tax information.

The question was this:  can I file another bankruptcy now to clear out the old debt, plus some new debt?  Apparently the emailer is dealing with a wage garnishee – it’s unclear as to whether this is related to the old debt or the new, although either way it can’t be easy to deal with.

The short answer is:  no.  If you have filed a bankruptcy, you must receive a ‘discharge’ from it – this is the last part of the process, and it essentially allows you to be free of the debts you had when you filed (there are some debts that bankruptcy can’t help with, for example child support payments or traffic fines).

The advice I had to give was to contact the previous trustee, and determine what needed to be done to complete that previous bankruptcy, then deal with the new debts.

Bankruptcy can be a simple process, for many it is a short and inexpensive way to deal with debt.  But, you must be aware of what needs to be done, and you should consider alternatives, such as a consumer proposal instead of bankruptcy.  As my post from yesterday shows, more and more people are choosing proposals these days.

Got debt?  Call us, toll free at 1-866-747-0660, or 310-PLAN, or locally at 519-344-1058.

 

 

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