Bankruptcy Question & Answer Forum - Canada

Author:		Carol
Date:		June 8, 2005
Question:		Just wondering how many times you can go bankrupt or do a proposal? My husband's business has just suffered many set backs in the last few months and even worse in the last few days. He has went bankrupt in 1984 and proposal in 1999. There is no getting out of the problems. Please advise.
From:		Bruce, Alger & Associates Inc.
Date:		June 9, 2005
Answer:		There is no legal limit on the number of times which a person might declare bankruptcy or make a proposal. However with each successive time, the courts will be increasingly more unsympathetic and will impose greater sanctions on getting out of bankruptcy. Of course, the interval between filings and the reasons for each are also taken into account. A debtor who does not appear to be learning anything from their fresh start will likely be dealt with more harshly than one who has extenuating circumstances as the cause for a subsequent financial difficulty. We have had a number of 3 time filers in our office and at least one 4 time filer. All of the third time filers of which I am personally knowledgeable filed proposals. Bruce Alger phone: (403) 296-2970 balger@alger.ca