When Does a Bankruptcy Clear from My Credit Report?
How Long Does a Bankruptcy Show On My Credit Report?
When you file for bankruptcy in Canada, the bankruptcy will remain on your credit report for a number of years.
How long the bankruptcy will remain on your credit report depends on which credit reporting agency is reporting your credit history.
These agencies, or bureaus, receive information from lenders and the federal Superintendent of Bankruptcy every month so that they can report on the credit history of individual consumers.
They also sell information to lenders and consumers.
Your credit history is used by lenders to assess the level of risk involved in extending credit to you.
If you have a poor credit history, they may be more reluctant to lend you money or finance a purchase.
Bankruptcy is one of the things that will show up on your report, and it will remain there for several years.
When creditors see that someone has filed for bankruptcy, they will take this into account when making decisions.
The Length of Time a Bankruptcy Stays on Your Report
The length of time a bankruptcy will show on a credit report depends on the reporting agency.
Equifax, which is the largest crediting bureau in Canada, keeps the first bankruptcy on a person’s report for six years from the date of discharge or last payment.
For a second bankruptcy, this period is extended to 14 years.
TransUnion keeps a bankruptcy on file for six or seven years from the discharge or for 14 years after the filing date.
Their rules depend on provincial legislation.
A proposal will remain on your credit report for three years from the last payment that you make.
When you are discharged, your trustee will send the information to the Office of the Superintendent of Bankruptcy, which will then report the information to the credit bureaus.
Gaining Absolute Discharge or Certificate of Completion
After filing for bankruptcy or a proposal, it is necessary to follow your trustee’s steps to gain your Absolute Discharge or Certificate of Completion.
Without this, you will not be able to access any form of borrowing, so there is no point in trying.
To receive your automatic discharge after filing for bankruptcy, you need to complete all of the duties that are required of you.
These include making monthly payments as required, reporting your income and expenses, and attending counselling sessions.
Your trustee will give you a written list of the major duties that you need to complete.
Errors on Your Credit Report
It is always a good idea to check your credit report on a regular basis and ensure that there are no errors.
A mistake on your report could affect your ability to get credit, and mistakes do occur on occasion.
After you have been discharged from your bankruptcy, it is a good idea to check your report to make sure that there are no debts remaining that should have been cleared by the bankruptcy.
You should get your report from both major agencies so that you can check for any errors, and report any that you find.
Credit information is managed by humans, so it can be subject to human error.
In addition to any issues with your bankruptcy, it’s important to check for other errors, including incorrect addresses or even your name being misspelled.
You can get a copy of your credit report online or through the mail.
Using the mail allows you to get a copy of your credit report for free, while you must pay a small amount to be able to access it online.
Errors can be corrected online or by writing to the credit report agency.
Rebuilding Your Credit Score
You can start to rebuild your credit rating after a bankruptcy so that you will be looked upon favourably by lenders again.
To start rebuilding your credit, you need to be able to show that you can borrow responsibly and that you can make payments on time.
You can look for lenders that specialize in lending to people after bankruptcy to make it easier to borrow and show that you can make payments on time.
Using a secured credit card for small monthly purchases is one method that can help to improve your score.
Bankruptcy Canada can help you with issues concerning bankruptcy and debt relief.
If you are interested in our services, you can contact us online or over the phone to find out more about how we can help you.