Credit Report After Bankruptcy or Consumer Proposal

Understanding Your Credit Report After a Bankruptcy or Consumer Proposal

Financial difficulties can lead to extreme measures such as filing for bankruptcy or a consumer proposal. The aftermath, however, might leave one wondering about the impact on their credit report. Here’s an in-depth look into your credit report after a bankruptcy or consumer proposal.

Why Check Your Credit Report Annually?

To effectively manage your financial health, it’s advisable to obtain a copy of your credit report each year. This proactive measure allows you to identify any inaccuracies and rectify them promptly. For those who’ve filed for a bankruptcy or consumer proposal, it’s even more crucial to ensure their creditors have correctly updated and rated their accounts.

How to Obtain Your Credit Report

After you’ve completed your bankruptcy and received your discharge documents from your Licensed Insolvency Trustee (LIT), you can request a free copy of your credit report from either Equifax Canada or Trans Union of Canada. The same applies if you’ve finalized a consumer proposal and have your certificate of full completion.

Note: Your creditors are liable for updating your credit report, not your Trustee.

Understanding Bankruptcies and Consumer Proposals on Your Credit Report

Bankruptcies and consumer proposals are public records. Therefore, their status should be accurately reflected on your credit report. The debts included in these filings should also indicate that they were discharged as a result.

The debts absorbed in a bankruptcy should be rated as R-9 or I-9, indicating that they’ve been written off, and the outstanding balance should be reported as zero. There should also be a note stating “included in bankruptcy” under the trade line for the respective creditor.

On the other hand, debts included in a consumer proposal should be rated as R-7 or I-7, and the outstanding balance should also be reported as zero.

Reviewing Your Credit Report

Once you’ve received your free credit report, scrutinize the information to ensure there are no discrepancies and that all debts included in your bankruptcy or consumer proposal have been rated correctly. In case of any errors, complete and submit a dispute form to the credit reporting agencies (Equifax & Trans Union). Be prepared to provide evidence of the error(s), like a copy of your bankruptcy or consumer proposal documents.

Exploring Consumer Proposals

If you’re contemplating whether a consumer proposal is worth it, don’t hesitate to contact professionals to understand more and review your situation. It’s also essential to understand how a consumer proposal or bankruptcy will impact your credit rating.

Choosing a Licensed Insolvency Trustee

Bankruptcy Canada is a network of Licensed Insolvency Trustees. They understand the personal impacts of major financial stress and offer:


  • Personalized services, not an assembly line process.
  • Prompt responses and resolution of issues from their supportive and experienced team.
  • Detailed review of your debt solution options, including filing a consumer proposal or personal bankruptcy.


The Role of Your Trustee

Once you file a consumer proposal or personal bankruptcy, your trustee deals directly with your creditors on your behalf. Your unsecured creditors are required to cease contacting you or continuing legal proceedings against you.

Free Consultations

Bankruptcy Canada offers free consultations to review your financial situation and practical debt resolution options. Contact us to discuss your situation over the phone, a video chat, or in-person in one of our locations across Canada.

In conclusion, understanding your credit report after a bankruptcy or consumer proposal is essential in managing your financial health. Stay proactive in reviewing your credit report and ensuring that all information is accurate to maintain a healthy financial future.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.