Bankruptcy Canada - Rebuild your credit rating


All About Bankruptcy in Canada

Should I Declare Bankruptcy?

Bankruptcy Alternatives and Solutions in Canada

How to File Bankruptcy or Make a Proposal to Your Creditors in Canada

Debts Not Discharged from Bankruptcy

Definition of Bankruptcy

Definition of a Proposal

Help - Questions and Answers on Bankruptcy in Canada

Help - Questions and Answers on Proposals to Creditors in Canada

Some Assets Exempt in Bankruptcy

How is My Spouse/Husband/Wife/Partner Affected by my Bankruptcy?

Student Loans and Bankruptcy in Canada

Credit Ratings

Rebuilding Credit After Bankruptcy

Opening a Bank Account After Bankruptcy

Secured Creditors

CRA Income Tax Debt and Bankruptcy

Farmers in Financial Difficulty

Who else can help with Bankruptcy in Canada?

Bankruptcy Canada Statistics

Alternatives to Bankruptcy in Canada

Credit Repair

Consumer Proposals

Debt Management

Dealing with CRA and Bankruptcy

Bankruptcy Canada - How Do I Rebuild My Credit?

When a person declares bankruptcy or files a proposal in Canada, the Office of the Superintendent of Bankruptcy in Canada notifies the credit bureau. We are advised by the credit bureau that for first-time bankrupts, the information stays on your credit bureau report for 6 years (for a second-time bankrupt, it stays on your report for 14 years). A proposal is recorded for 3 years after the completion of your proposal.

After discharge from bankruptcy, you can start to re-establish your credit by doing the following:

  1. Talk to your banker and say you want to re-establish your credit rating.

  2. Open a savings account.

  3. Be a regular saver:
    Pay yourself first
    Take your next raise and save it
    Save 5 % of your pay

  4. Take out a small loan using the savings account as collateral, and then pay it back.

  5. Apply for a credit card with a low limit and secure the limit by using your savings account as collateral.

    If you have difficulty getting a new credit card, you may want to apply for a "secured card" from your financial institution. A "secured card" is a card backed-up or secured by funds you have deposited with the bank or credit union. Several Canadian financial institutions offer secured credit cards:

    Home Trust Company

    Horizon Plus

    Capital One

  6. Do not apply for more than one or two credit cards. Each application for credit will show on your rating. Target one or two financial institutions.

  7. Pay your credit card balances on time.

     

     

This site provides free information about personal bankruptcy in Canada and personal bankruptcy alternatives in Canada.


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