How Long Does A Bankruptcy Stay On My Credit Report? 

Are you worried about how filing for bankruptcy is going to impact your future finances and your credit report?

Here’s what you need to know.

People often assume that once you finish filing for bankruptcy, the slate is wiped clean and you can start again from a fresh financial situation.

In a way, this is true.

It’s likely that the majority of your debt will be cleared with the exception of things like child support.

However, filing for bankruptcy does have far-reaching consequences.

It will, for instance, impact your credit report and you need to be prepared for this.

How Is Bankruptcy Reported?

When you file for bankruptcy in Canada, there are two different credit reporting agencies.

Both have different ways to report bankruptcies.

The first is Equifax.

In this case, a bankruptcy will stay on your record six years once the discharge has been completed or seven years after the filing if there is no discharge.

It’s possible that a second bankruptcy is filed.

In this case, the first will re-appear and both remain on record for fourteen years.

The other is Transunion.

According to the business, their reporting differs depending on your province and the credit reporting legislation that is in play here.

In some cases, the bankruptcy remains on the report for seven years or fourteen for a second filing.

Once the bankruptcy has been removed, all accounts reported which included bankruptcy will also no longer appear.

So, typically, the difference between the two is one year.

Equifax typically removes the bankruptcy after six years whereas Transunion removes it after seven.

What About A Consumer Proposal?

Before filing bankruptcy many people will consider filing a consumer proposal.

This is basically an offer to creditors to reduce the debt owed and pay it within a certain fixed period.

It can be useful and help avoid more drastic measures.

The max time period after the date or default for both credit reporting agencies is now six years as of 2019.

With Equifax, this can be shortened to six years, after you have covered all the debts included within the proposal.

With TransUnion, the consumer proposal is removed from your records six years after you have completed and satisfied the proposal or six years after you default.

This ultimately means that you can shorten the time that the consumer proposal remains on your record.

All you need to do is make sure that you are paying off the debt as quickly as you can.

What’s The Right Road To Recovering Your Credit?

Once you take a step like this, you may be interested in figuring out how to fix your credit and ensure that your rating is restored.

The first step is to be aware that filing for a consumer proposal or bankruptcy can actually be the right step if you need to make sure that you are able to fix your credit.

Why is this?

It helps to erase the debt that you won’t be able to pay.

You might think that your credit is in good shape but with debt hanging over your head, you will always struggle to get a loan that you could potentially need.

This is particularly true if you are carrying a lot of debt.

You should also be aware that your credit rating is never going to be the only factor that lenders consider.

There’s a lot of different variables that they will explore.

They’ll look at your income, they’ll want to know whether you have job stability and whether you have assets.

You might also be able to take out a loan if you have a co-signer.

As such, you shouldn’t assume that a credit report with bankruptcy is going to cripple your financial options.

There will always be a way forward here.

We hope this helps you understand a key question that many people have when they file for bankruptcy.

If you need more assistance, do make sure that you contact us today.

We have helped more than 100,000 Canadians discover the financial relief they need and we’re confident that we can help you too.

Our aim will be to ensure that you understand all your options based on your financial situation and that you can make an informed decision.

You can either contact us on the phone or fill out an evaluation form.

The whole process just takes a few minutes and a friendly member of our team will walk you through the next steps you need to take.

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