Bankruptcy Ottawa

One of the most common question people have is “how long does a bankruptcy or consumer proposal stay on my credit bureau”? How long bankruptcy stays on your credit report in Canada will depend on the credit bureau that is reporting.

Equifax and Trans Union are the two largest credit bureaus in Canada, Equifax. Equifax keeps the record of your consumer proposal on its records for 3 years after your very last payment on your current debts and 6 years from the date of discharge after filing for personal bankruptcy. If this is your second bankruptcy, they will keep it on your record for 14 years.

Trans Union states on their web site that they keep a bankruptcy record on your credit file for six to seven years from the date of discharge or fourteen years from the filing date (depending on provincial legislation).

Your Credit Score after Personal Bankruptcy

Once you have declared personal bankruptcy or made a consumer proposal you are given the lowest possible credit score. This makes sense. The only difference is, as I have mentioned, a consumer proposal doesn’t stay on your record as long.

Something that you are going to want to do is send a copy of your discharge to both Trans Union and Equifax to ensure your credit records are up to date and keep all the documents you have regarding your personal bankruptcy or consumer proposal for reference by future lenders.

How Soon Can I Get Credit Again?

This does not mean you can’t get credit or even a credit card. Once your discharge has been granted you will get solicited by, for example, MasterCard for a limited credit amount usually with an upfront deposit on your part of around $500. The deal here is that they are going to charge you a high rate of interest because of your poor credit history. From the standpoint of rebuilding your credit, it is a smart thing to do at any interest rate because of the long term benefits of building up your credit score.

In conclusion you will be able to start to rebuild your credit as soon as your discharge comes through, so bankruptcy isn’t the end of the world in term of your access to lenders. As part of your bankruptcy process, the trustee’s office will give you some helpful tips on rebuilding your credit after personal bankruptcy.