Overcoming the Stigma of a 2nd Bankruptcy in Canada — Mariah’s Story

Mariah never imagined she would need to file for bankruptcy, let alone a second time. Her financial challenges were not the result of overspending or frivolous choices, but rather a series of life events that left her struggling to stay afloat.

The first time Mariah filed for bankruptcy, it was after her divorce. The legal bills, combined with the sudden drop to a single income, were overwhelming. Bankruptcy gave her a fresh start and a chance to rebuild. She worked hard to improve her financial situation, but years later, an unexpected job layoff left her relying on credit to make ends meet.

As her debt grew, so did her anxiety. Mariah felt embarrassed at the thought of filing for a 2nd bankruptcy. She worried about what others would think and questioned whether it was even possible. However, the stress of creditor calls and mounting bills was too much to bear.

Determined to find a solution, Mariah reached out to Smythe Insolvency. Speaking with a Licensed Insolvency Trustee (LIT) was a turning point. The Trustee assured Mariah that she wasn’t alone—many people face unforeseen circumstances that lead them to consider a 2nd bankruptcy. They explained the differences this time around: filing for a 2nd bankruptcy in Canada requires a longer process, lasting 24-36 months, and there’s no automatic discharge.

With the Trustee’s guidance, Mariah gathered the necessary documents, and within six days, she had signed her paperwork. For the first time in months, she felt relief. The creditor calls stopped, and she could finally focus on getting back on her feet.

Over the next 24 months, Mariah followed the bankruptcy requirements and took advantage of the budgeting advice provided by Smythe Insolvency. Without the burden of high-interest payments, she managed to build an emergency fund—a safety net she had never had before.

When her bankruptcy was discharged, Mariah felt a weight lift from her shoulders. She was debt-free and better prepared for the future. Filing for a 2nd bankruptcy had been a difficult decision, but it gave her the chance to rebuild her life once again.

If you or someone you love is considering filing for a 2nd bankruptcy in Canada, don’t let fear or stigma hold you back. A Licensed Insolvency Trustee can walk you through the process, discuss the pros and cons, and help you determine if it’s the right step for you. Reach out to Smythe Insolvency today for a free consultation—you don’t have to face this journey alone.