When a consumer proposal or a bankruptcy has been declared the credit bureau is notified. A first-time bankruptcy remains on file and a part of your credit record for 6 years after it has been discharged while a second bankruptcy remains for 14 years. A consumer proposal, on the other hand, remains registered on your record for only 3 years after having paid off your proposal in full.

You’ll be required to take mandatory counselling sessions to learn how to begin rebuilding your credit. It will take some time to rebuild your credit rating but it can be done. We will help you identify the things you can do to re-establish your credit rating faster.

The credit rating you’ll receive with a bankruptcy is R9, (bad debt), while a consumer proposal is rated higher as an R7. When you make a consumer proposal, you set up an arrangement to make regular payments to settle your debts.

What If Some of My Debts Have a Guarantor or a Co-Signer?

If you file a consumer proposal or for bankruptcy protection, a guarantor, co-signer or supplementary credit card holder will likely be held responsible for the debt. The proposal or bankruptcy will protect you but not your guarantors, and their credit ratings may be damaged if the debts are not paid.