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Credit Score Recovery Simulator ("Path to 700+")

Simulate your credit rating trajectory over 12, 24, 36, and 60 months following a Consumer Proposal, Bankruptcy, or unmanaged debt default.

Rebuilding Credit in Canada

Contrary to popular belief, filing a Consumer Proposal or Bankruptcy does not permanently destroy your credit. By following a structured rebuilding strategy, most Canadians reach a 700+ prime credit score within 36 months of completing a Consumer Proposal.

Credit Score Recovery Simulator ("Path to 700+")

710
Projected 60-Month Score: Prime Tier

Understanding Canadian Credit Ratings (R1 to R9)

In Canada, credit bureaus like Equifax and TransUnion assign a rating code from 1 to 9 for each account on your credit report. The letter indicates the type of credit (R for revolving, I for installment), while the number reflects payment history.

Rating Code Meaning / Payment Status Impact on Credit Score
R1 Paid on time (within 30 days of billing) Optimal (+700 Score)
R2 – R5 Late payments (30 to 120 days overdue) Moderate Loss
R7 Consumer Proposal or debt settlement plan Temporary Drop (Fast Recovery)
R9 Bad debt, assigned to collections, or Bankruptcy Severe Impact

The "2 / 2 / 2000" Credit Rebuilding Formula

To achieve a prime credit score after completing a Consumer Proposal or Bankruptcy, Canadian mortgage lenders and prime auto creditors look for a specific credit footprint:

2

Revolving Accounts

Maintain at least 2 active, reporting credit accounts (e.g., one secured credit card and one credit builder loan).

2

Years of History

Build 2 consecutive years of flawless, 100% on-time payment history post-discharge or completion.

$2k

Combined Limit

Maintain a combined total credit limit of at least $2,000 across your reporting accounts while keeping balances below 10%.

Frequently Asked Questions

Equifax and TransUnion remove a Consumer Proposal notation 3 years after the proposal is fully paid off, or 6 years from the date you filed it—whichever comes first. Paying off your proposal early shortens the time it stays on your report.

Yes. Major Canadian banks (A-lenders) approve CMHC-insured mortgages for applicants who have been discharged for at least 2 years and have established 2 active trade lines with a $2,000 combined limit under the 2/2/2000 rule.

You can apply for a secured credit card immediately after your Consumer Proposal is approved or as soon as you receive your discharge papers in bankruptcy. Opening a secured card early allows positive monthly trade-line reporting to begin right away.

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I WANT TO BE DEBT FREE

I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.

During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.

Geoffrey,

Toronto