Can I Apply For Credit While Bankrupt?

Filing for personal bankruptcy does not prevent you from applying for credit.

You can apply for credit while you are still in bankruptcy, but you must disclose to the other party that you are an undischarged bankrupt. The fact that you are an undischarged bankrupt could result in the lender not granting you credit, or they may require a co-signer or charge you a higher interest rate to offset the risk of lending to you.

If you intend to start rebuilding credit, you may want to apply for a secured credit card. As long as you apply for a limit under $1,000, you are not required to disclose that you are bankrupt; however, the lender will likely find out when they get your credit report.

Note: Renewing your mortgage is not considered an application for new credit, so there are no restrictions as long as you are not attempting to borrow additional funds.

Once your bankruptcy is complete and you have received a discharge, you can apply for credit without any restrictions.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of significant financial stress; 

• You won’t be stuck in an assembly line process. 

• You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.  

• We will review your debt solution options, including filing a consumer proposal or personal bankruptcy. 

• We help Canadians with overwhelming debt get fresh financial starts.  

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.  

We offer free consultations to review your financial situation and practical debt resolution options.  Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.