How Long Will a Bankruptcy Show on My Credit Report?

Filing for bankruptcy is one of the best ways to get a fresh financial start.

You can settle all of your unsecured debts while also retaining the majority of your possessions.

Most people find that they’ll be able to keep their car, personal belongings, work-related items and even their home if it meets certain conditions.

As such, bankruptcy can be a great way to get out of severe debt and reset your financial life.

However, a personal bankruptcy claim can stay on your credit history for at least six years following your release from bankruptcy.

This often happens nine months from the date that you filed your bankruptcy.

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How will bankruptcy affect my credit options?

Filing for bankruptcy means you’ll have a negative mark on your credit report that makes it difficult to borrow money.

However, most people are able to resume using credit roughly two to three years after they have been released from bankruptcy.

In addition, bankruptcy might not affect your current mortgage if you’re making enough money to continue making payments.

However, it can limit certain credit options and will prevent you from accessing the full range of financial products available.

As such, you may want to reconsider filing for bankruptcy if you’re concerned about future credit options.

Is bankruptcy a good option for me?

It’s understandable that you might have some concerns when claiming bankruptcy.

To help you make that decision, here are a couple of considerations to keep in mind.


  • Are you able to pay off your debt and interest in the next two to five years? If so, you should ideally just pay it off if you’re concerned about your financial options due to the mark that bankruptcy leaves on your credit rating.


  • Does your current credit rating make you eligible for a debt consolidation loan? If so, then it may be a much better option than filing for bankruptcy since you’ll have access to good interest rates.


  • After filing for bankruptcy, will you be able to continue earning money and sustain your way of life without making too many sacrifices? If so, then bankruptcy may be a good option for debt relief.


Keep in mind that while six years can sound like a long time, most people see it as a short-term impact on their credit rating before they can start a new financial life.

It also means you don’t need to pay back all of your debt.

Even with a bankruptcy on your credit report, it’s still possible to seek certain forms of credit including vehicle financing or a credit card.

It’s not a permanent mark and our credit score can easily be repaired if you focus on budgeting and managing your finances.

If you’d like to learn more about bankruptcy and how it affects your credit report, don’t hesitate to get in touch with us today for more information.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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