How Long Does Bankruptcy Remain on Your Credit Report?

Understanding Bankruptcy’s Duration on Your Credit Report

If you’ve ever faced the dilemma of filing for bankruptcy, you might have wondered, “How long does bankruptcy remain on your credit report?“. This question often lingers in the minds of individuals who’ve had to resort to bankruptcy as a means of overcoming financial distress. And rightly so, as the implications of bankruptcy on one’s credit report are significant and long-lasting.

The Intricacies of Bankruptcy

Bankruptcy is a legal recourse that allows individuals or businesses to eliminate or pay off their debts under the protection of the federal bankruptcy court. Although it provides debt relief, its implications on your credit report are substantial and can last for several years.

Impact of Bankruptcy on Your Credit Report

Bankruptcy is reported in two primary sections of your credit report:

  1. Public Record Section: The credit bureau notes the type of bankruptcy filed and the filing date here. After discharge, the discharge date is added.
  2. Trade Account Section: Individual creditors update the debt information to highlight that the debt was ‘included in bankruptcy’.

Bankruptcy and its Tenure on Your Credit Report

A common query among people who have filed for bankruptcy is, “How long does bankruptcy stay on your credit report in Canada?” Generally, a first bankruptcy will remain on your credit report for six to seven years after discharge, depending on the credit bureau. This duration extends to 14 years for a second or subsequent bankruptcy.

Differing Policies of Credit Bureaus

The duration for which bankruptcy stays on your credit report slightly varies across different credit bureaus. For instance:

  • TransUnion: Bankruptcy, and all accounts reported as part of it, are removed seven years from the date of discharge. If multiple bankruptcies are filed, each remains for 14 years from the respective discharge date.
  • Equifax: Bankruptcy stays on the credit report for six years after your discharge date or seven years after the date filed without a discharge date. If a second bankruptcy is filed, then the first reappears on your credit report, and both bankruptcies remain for 14 years after the discharge dates.

Focusing Beyond Credit Impact

While it’s natural to worry about bankruptcy’s effect on your credit rating, it’s critical to understand that many people successfully repair their credit after filing bankruptcy and secure loans again.

Rebuilding Credit Post Bankruptcy

Bankruptcy declaration can sometimes be your first step towards improving your credit score. If unrepayable debts are burdening you, continuing to carry those debts until you eventually default or max out your credit will negatively affect your score until you deal with your problem debt.

Steps to Restore Credit Post Bankruptcy

Here are some steps you can take to restore your credit post bankruptcy:

  • Ensure timely payment of all bills.
  • Regularly review your credit report every four to six months after your bankruptcy completion to ensure accurate and updated information.
  • Open a savings account and maintain an emergency fund.
  • Apply for a secured credit card post your bankruptcy completion or after your proposal acceptance by creditors.
  • Use any credit card obtained sparingly and ensure prompt payment of balance.

The Fresh Start Credit Rebuilding Program

This program offers a comprehensive education and support system to clients, providing them with the skills and resources necessary to rebuild their finances and credit after filing insolvency.

Inability to Pay Bills

If you’re unable to pay your bills, reach out to a licensed insolvency trustee who can review your situation and offer solutions to your debt problems.


Filing for bankruptcy is a significant decision with long-term implications on your credit report. However, with disciplined financial habits and the right support, it’s possible to overcome the negative impact and rebuild a strong credit profile.

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