How long your bankruptcy stays on your credit report will depend on a couple of factors. There are two main credit bureaus in Canada (Equifax Canada and TransUnion Canada) that potential creditors may choose to check with when deciding whether to lend you money. Each credit bureau has a slightly different length of time it keeps your bankruptcy on file, anywhere from six to eight years.
The other factor that affects how long bankruptcy shows on your credit score is whether this is your second or third bankruptcy. After your first bankruptcy, the notification of bankruptcy is kept on your file for 14 years.
If you request your credit score after bankruptcy, it shows no debt and a blank credit history, other than the bankruptcy.
“Don’t let your past decide your future.” Frederick Bliss
Many people think that they will not be able to get credit after bankruptcy. This is not true; you will be able to borrow money after bankruptcy. It will just be more difficult than if you had a good credit rating. Your credit rating can actually get better following a bankruptcy, providing you follow a few practical steps. Once your bankruptcy is discharged, you can pay bills on time and build up cash reserves and take other actions that will rebuild your credit score.
You may even be thinking that you never want to go into debt again because of the stress that led up to the bankruptcy. Going into debt is a different kettle of fish than having access to credit. Most people require a mortgage to buy a home. If you want a newer car, you will probably need to use a loan or lease to afford it. If you need to book a flight or make a reservation, it is difficult to do so without the use of a credit card. Debt becomes a problem when you start using credit to make purchases that don’t fit your income level. But not having access to credit can make living in the modern world difficult.
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