Filing for Bankruptcy a Second Time in Manitoba - Manitoba Bankruptcy
Filing for Bankruptcy a Second Time in Manitoba?
Find Out Why it Will Cost More
Filing bankruptcy is a step towards resolving your debt problems and involves the court for this legal process in order to reduce your debts.
When you file bankruptcy for the first time it does not cost much, just the ordinary fees that it takes.
But when you file bankruptcy for the second time it costs more.
There are situations where an individual feels the need to file bankruptcy for the second time.
It happens and it does not mean you are in trouble and cannot file it.
Technically there is nothing wrong in filing bankruptcy twice.
However filing it again and again can be problematic for you as when you file bankruptcy after the third time, it means asking the court to discharge you and there are higher chances of not being discharged by the court.
But let us focus on filing bankruptcy for the second time for now.
Surplus Income and Filing Bankruptcy
We will start with the basics of how the government sets a threshold for the citizens of Manitoba.
The government sets a standard for your income for the purpose of maintaining a standard living which would be suitable and equal for all the citizens.
They look if your additional money can come under your surplus income that can be applied to reduce your debts or not.
For this, we have explained this question through the importance of surplus income for your bankruptcy.
Filing bankruptcy twice is not only expensive but it takes longer too, especially when it comes for people with surplus income because when you have surplus income it would mean you have extra money which can be applied for your bankruptcy debts.
Your surplus income varies from person to person likewise when you would be required to pay the amount of money in bankruptcy every month; it will depend on how much your surplus income is.
The amount required for bankruptcy is half the amount of your surplus income.
For example, if from your family income, your surplus income is $500 then the cost of filing bankruptcy from this amount would be $250 which you would be required to pay every month until 21 months are completed making a total of $5,250.
But if you’re filing bankruptcy for the second time then the same amount from your surplus income that is $250 would be required to pay every month till 36 months making a total of $9,000.
Hence it is evident that the cost of filing bankruptcy twice is expensive and takes much longer than filing the bankruptcy for the first time.
When you are deciding on filing for bankruptcy a second time in Manitoba it is recommended that you consult a local trustee when you are in bankruptcy.
By doing so, you can gain a better understanding of the cost and time span involved in filing bankruptcy for the second time.
You can also seek guidance regarding the consumer proposal and look for all the possible solutions that would be best for your debt and report.
It is suggested that you avoid coming under bankruptcy again and again but if you do, quickly file for bankruptcy and filing twice is alright but try to make things right without filing for bankruptcy after the third time.