How Long Will It Take To Get My Credit Back After Bankruptcy?

One solution for eliminating overwhelming debt and resetting your finances is to file for bankruptcy.

When you’re seriously considering this option, you may be wondering: “How long does it take to get my credit back after bankruptcy?”

There are a couple of answers to this question that you need to know.

You’ll not only want to understand how long bankruptcy will remain on your credit report but also what you can be doing to rebuild your credit.

Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770


How Long Does Bankruptcy Remain on Your Credit Report?

You’ll likely be curious to know how long bankruptcy remains on your credit report.

After you receive your discharge, your credit report will have a record of your bankruptcy for a minimum of six years.

A proposal will remain on your credit report for at least three years after you’ve made all of your required payments.

The truth is that it may be more challenging to borrow for some time.

If you apply for a loan or credit card during this period, the lender will be aware that you went bankrupt or filed a proposal.

The good news is that you don’t have to wait to start rebuilding your credit.

Rebuilding Credit after Bankruptcy

When it comes to having the ability to borrow, your credit is only one factor among several.

The additional factors that come into play, include:

  • Your income.
  • Whether you have a cosigner.
  • The amount of your down payment.
  • If you have assets that can secure the loan.

You’ll have a quicker time repairing your credit if you can prove that you have learned how to handle money better.

Build some Savings

The best piece of advice is to start saving some money as soon as possible.

The payments you’ll be required to make for a bankruptcy or consumer proposal are typically much lower each month than what you were paying against your debts before filing.

One upside to filing for bankruptcy likely is that your budget will improve reasonably significantly.

Therefore, you can begin to save up some extra money.

For instance, your minimum debt payments may be around $1,000 dollars monthly, while a consumer proposal will help you only to have to pay 300 dollars a month so then you’ll have extra money leftover that you can put away.

How much you’ll be able to save depends on your situation, and every person’s circumstances will be different, based on the debts, income, and living expenses.

However, every client will find that their cash flow improves after filing a bankruptcy or consumer proposal.

The benefits of having more savings include:


  1. You now have the ability to build an emergency fund.

    This ensures that you don’t need to rely on credit, especially expensive payday loans, going forward.

  2. Savings can be used as a down payment on a car, or even for a mortgage on a house.


It’s ultimately in your control how quickly you can repair your finances after bankruptcy.

It’ll be dependent on the amount of money you can put away and save.

Renew Your Credit History

After you have an emergency fund built up, and your bankruptcy or proposal is over, then you can take additional steps to set yourself up for success in the future.

One idea is to consider using some of your savings to get a secured credit card so you can start the process of re-establishing a new credit history.

You’re on your way to wiping the slate clean and being able to start over when you file a bankruptcy or consumer proposal.

You can show lenders a whole new, and better, credit history when you use a secured credit card wisely.

Here’s how and why it works:


  • You have a credit available of say 500 dollars to 1,000 dollars based on the amount you’ve put on deposit for your secured credit card.
  • You have to borrow against this credit limit when you charge small amounts on your credit card.

    This gives you a credit utilization rate which the banks like to see.

    Try not to keep the card maxed out every month because this is not good for your credit score.

  • You show you can handle credit when you pay off your balances in full each and every month since this gives you a good payment history.


Be patient because it will take some time before you’re able to rebuild your credit with your new secured credit card.

After some time passes and you’re in a better place, you can think about applying for another small term loan or RRSP loan.

You have a good chance of receiving an approval but know that your rate may be higher initially.

It’s crucial that you make all your payments on time.

If you do so, then you should see continual improvement in your credit score as time passes.

How to Proceed

Getting your credit back after bankruptcy is a top concern for many people, so you’re not alone if this is top-of-mind for you.

It’s important to know how long it will take and what to expect.

The first step to rebuilding poor credit is to file a bankruptcy or consumer proposal so you can deal with overwhelming debt head-on.

One of the main benefits of a consumer proposal versus bankruptcy is that you get to retain all of the assets that you own.

You can proceed by reaching out and getting in touch with a bankruptcy trustee today who can help.

At Bankruptcy Canada we’ve been assisting people like you get out of debt and find financial freedom for years.

We’re happy to answer any questions you have and offer advice for what course of action will be best for you given your situation.

It’s not always an easy or clear answer so we’re here to ensure that all details are taken into account and that we work together to come up with an ideal approach that will allow you to get out of debt so you can be more financially secure.

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?

Leave a comment

Your email address will not be published. Required fields are marked *