How Will A Consumer Proposal or Bankruptcy Affect My Credit Rating?
There are two major credit reporting agencies in Canada: Equifax Canada Co., and TransUnion of Canada. Governed by provincial and federal laws, credit reporting agencies store and maintain credit information about Canadian consumers for use by the creditors who subscribe these services. They gather their information from lenders, collection agencies and public records. Members include banks, finance companies, auto leasing companies, credit card companies and retailers.
If you are already behind on payments to your creditors or are in collections, this is most likely already reflected on your credit rating.
A consumer proposal is usually a matter of public record and reflected on your credit report. This information is available to credit grantors and may affect your ability to get credit in the future.
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A consumer proposal is reported on your credit report for a shorter time than a bankruptcy, and will usually have a low impact on your credit report than a Bankruptcy.
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The consumer proposal stays on your credit bureau report for a maximum of 6 years (including the time during your consumer proposal). That means a 5-year consumer proposal will stay on your credit report for 1 additional year after you have completed all of the terms of your Proposal. Equifax Canada – How Long Does Information Stay on My Equifax Credit Report?
Bankruptcies are also a matter of public record and will be reflected on your credit report.
A first bankruptcy will stay on your credit report for 6-7 years from your discharge date.
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If you don’t have surplus income, you will receive a discharge after nine months.
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If you have surplus income, you will receive a discharge after twenty-one months.
A second bankruptcy will stay on your report for 14 years from your discharge date.
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If you don’t have surplus income, you will receive a discharge after twenty-four months.
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If you have surplus income, you will receive a discharge after thirty-six months.
Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of significant financial stress;
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You won’t be stuck in an assembly line process.
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You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.
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We will review your debt solution options, including filing a Consumer Proposal or Personal Bankruptcy.
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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.