Your Credit Report After a Bankruptcy or Consumer Proposal
We always recommend that consumers actively manage their credit rating by obtaining a copy of their credit report each year. This allows them to review their profile to make sure there are no errors or omissions. It’s even more important for a consumer who files a bankruptcy or consumer proposal as they need to make sure their creditors have updated and rated their accounts correctly.
Once your bankruptcy has been completed and you have received your discharge documents from your Licensed Insolvency Trustee, you can obtain a free copy of your credit report from either Equifax Canada or Trans Union of Canada. The same is true once if you have completed a consumer proposal and have received your certificate of full completion.
Bankruptcies and consumer proposals are public record and their status should be reflected on your credit report. The debts that were included should also indicate that they were discharged as a result. Debts included in a bankruptcy should be rated as R-9 or I-9, indicating written-off, and the outstanding balance should be reported as zero. There should also be a note indicating “included in bankruptcy” below the trade line for the corresponding creditor. Debts included in a consumer proposal should be rated as R-7 or I-7 and the outstanding balance should also be reported as zero.
Once you have received your free credit report you should review the information to make sure there are no errors and that all debts included in your bankruptcy or consumer proposal have been rated properly. If there are errors you can complete and submit a dispute form to have the credit reporting agencies (Equifax & Trans Union) investigate. You will likely need to provide evidence of the error(s) so I copy of your bankruptcy or consumer proposal documents will likely be needed. It's important to understand that your creditors are responsible for updating your credit report, not your Trustee.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.