How will a bankruptcy or consumer proposal affect my credit rating?
Usually, once your level of debt becomes so great that bankruptcy or a proposal is required, your credit rating is already poor. A person who declares bankruptcy is assigned the lowest possible credit rating score. A consumer proposal produces a similar result. Information that affects your credit score is usually removed from your credit report after a certain period of time. The length of time that information must stay in your report depends on the type of information and where you live (Learn more…). Your ability to obtain and use credit after discharge depends on convincing lenders of your personal financial maturity and ability to repay the debt. However, there are no guarantees — no one is required to give you credit. To ensure that your credit record is updated, send a copy of the discharge order to the major credit-reporting agencies. Make sure that you keep all documents relating to your bankruptcy or proposal for reference by future lenders.
