How long does a consumer proposal stay on your credit report?

A consumer proposal stays on your credit report for 3 years after you make your final payment, or 6 years from the date the proposal was filed — whichever comes first.

How long does bankruptcy take to be discharged in Canada?

A first-time bankrupt with no surplus income is typically discharged after 9 months. If you have surplus income, discharge takes 21 months. A second bankruptcy takes a minimum of 24 months, longer with surplus income.

Can I get a credit card during bankruptcy?

You are not prohibited from applying for credit during bankruptcy, but approval is very unlikely. Most creditors will not extend credit while you are an undischarged bankrupt. Secured credit cards are sometimes accessible after discharge.

How do I rebuild credit after bankruptcy in Canada?

Start by getting a secured credit card, make all payments on time, keep balances below 30% of your limit, and check your credit report annually to ensure the bankruptcy is removed on schedule. Most people can reach a fair credit score (600–650) within 2–3 years of discharge.

How Long Does Bankruptcy Stay on Your Credit Report in Canada?

Q: How long does bankruptcy stay on your credit report in Canada?

A first bankruptcy remains on your Equifax and TransUnion credit reports for 6 years from the date of discharge. A second bankruptcy stays for 14 years from the discharge date.

Bankruptcy is a legal process that provides relief from unmanageable debt — but it comes with a lasting impact on your credit file. Understanding the timeline helps you plan your financial recovery.

How Long Bankruptcy Appears on Your Credit Report

In Canada, both Equifax and TransUnion follow the same retention rules for bankruptcy:

Situation	How Long It Stays on Your Credit Report
First bankruptcy	6 years from the date of discharge
Second bankruptcy	14 years from the date of discharge

These timelines are from the discharge date, not the filing date — and since discharge can take 9 to 24+ months, the total period from filing to removal can be significantly longer.

Example Timeline — First Bankruptcy

Event	Date
Filed for bankruptcy	January 2025
Discharged (9 months, no surplus income)	October 2025
Bankruptcy removed from Equifax & TransUnion	October 2031
Total time from filing to clean report	~6 years 9 months

What Is Bankruptcy Discharge and How Long Does It Take?

Discharge releases you from most of your debts and ends the bankruptcy process. The timeline depends on whether it is your first or second bankruptcy and whether you have surplus income.

First Bankruptcy

Situation	Discharge Timeline
No surplus income	9 months
With surplus income	21 months

Surplus income is calculated using the Office of the Superintendent of Bankruptcy (OSB) thresholds. If your monthly net income exceeds the threshold for your family size, you must make surplus income payments and your discharge is extended.

Second Bankruptcy

Situation	Discharge Timeline
No surplus income	24 months
With surplus income	36 months

Discharge can also be opposed by a creditor or the trustee, which extends the process further through a court hearing.

Consumer Proposal vs. Bankruptcy — Credit Report Comparison

Many people consider a consumer proposal as an alternative to bankruptcy. The credit reporting rules are different:

	Consumer Proposal	First Bankruptcy	Second Bankruptcy
Credit report retention	3 years after last payment (or 6 years from filing, whichever is sooner)	6 years from discharge	14 years from discharge
Impact on credit score	Severe (similar to bankruptcy)	Severe	Severe
Debt relief	Up to 80% reduction	Most unsecured debt eliminated	Most unsecured debt eliminated
Monthly payments	Fixed, negotiated	Surplus income payments	Surplus income payments

For many Canadians, a consumer proposal results in a shorter mark on their credit report, especially if payments are made and the proposal completed quickly.

Individual Items Within a Bankruptcy

In addition to the bankruptcy notation itself, each individual account included in the bankruptcy (credit cards, lines of credit, personal loans) is marked as included in bankruptcy on your credit report. These individual account notations are typically removed 6 to 7 years from the date of the last activity or the date the account was included in the bankruptcy — which may actually disappear before the bankruptcy notation itself.

How Bankruptcy Affects Your Credit Score

Filing for bankruptcy typically drops your credit score into the 300–500 range. There is no standard formula, as scores depend on your pre-bankruptcy history, but severe damage is expected.

Time After Discharge	Realistic Credit Score (first bankruptcy)
Immediately after discharge	300–500
1 year (with active rebuilding)	500–580
2–3 years	580–650
4–6 years	650–720 (possible, with consistent effort)

Rebuilding Credit After Bankruptcy

Step 1: Get a Secured Credit Card

Within a few months of discharge, apply for a secured credit card. You deposit collateral (typically $200–$500) that becomes your limit. Use it for small purchases and pay the full balance monthly. Several Canadian institutions offer secured cards specifically for credit rebuilders.

Step 2: Keep Utilization Low

Never exceed 30% of your available limit. Ideally, keep it below 10%.

Step 3: Monitor Your Credit Report

Check your Equifax and TransUnion reports annually through Borrowell (Equifax) and Credit Karma (TransUnion) — both offer free credit monitoring in Canada. Verify the bankruptcy is scheduled for removal on time.

Step 4: Consider a Credit Builder Loan

Some credit unions offer small credit-builder loans where payments are reported to the credit bureaus, helping build a positive history.

Credit Score Guide — Canada — How Canadian credit scores work
How to Rebuild Credit After Bankruptcy — Detailed recovery roadmap
How Long to Rebuild Credit — Timeline by starting score
Secured Credit Cards — Canada — Best options for credit rebuilding