Second-time bankrupt in debt $50,000 – How We Helped

Saturday, October 17, 2015 - 14:53

Bankruptcy, Debt and Relationships


“Paul”, a client of ours from Guelph, first contacted our office when he realized his debt had gotten out of hand, again. He was a machine operator who was in the middle of a separation from his wife. He found himself in $50,000 worth of credit card debt after his marital breakdown, and was unable to service that debt. He was overwhelmed and in need of financial help.

How we helped:

Since Paul had no assets that would be affected by bankruptcy and didn’t have enough income with which to make a consumer proposal, we agreed that his best solution was to file personal bankruptcy a second time.

Since Paul filed bankruptcy a second time, the R9 rating will remain on his credit bureau report for 13 years after discharge (opposed to six years after filing the first time. 13 years is a long time to have an R9 rating, but sometimes the pros still outweigh the cons.  

By filing bankruptcy a second time:

  • his creditors were prevented from taking legal or collection action against him
  • he was able to get a fresh start
  • he was discharged from most of his debts

Since Paul was a second-time bankrupt without surplus income, he ended up paying his creditors $2,400, amounting to $100 per month for 24 months.

Where is he now?

Paul paid off his creditors in 24 months, was able to keep his vehicle and has since been discharged of his debt. It will take some time, but Paul is currently working on improving his credit score.

If you are overwhelmed with debt and need help, we are here for you. Please do not hesitate to contact us. It’s never too soon and it’s never too late.