Myth: By filing personal bankruptcy, I will destroy my credit forever.
Fact: Filing .personal bankruptcy results in a R9 credit rating which, for a first time bankrupt, will remain on your credit report for 6 years after discharge. You do not have to wait 6 years to rebuild your credit rating.
Myth: By filing a consumer proposal I will destroy my credit rating forever.
Fact: Filing a consumer proposal results in a R7 credit rating which remains on your credit report for 3 years after your proposal is paid in full. You can start rebuilding your credit rating immediately after filing your consumer proposal.
Myth: Filing a consumer proposal is much better for your credit rating than filing personal bankruptcy.
Fact: A consumer proposal results in a R7 credit rating and filing personal bankruptcy results in a R9 credit rating which is the worst. A consumer proposal results in a slightly better credit rating than filing personal bankruptcy, but when deciding which option is right for you credit rating is usually not the primary concern.
Myth: After filing personal bankruptcy no one will give me a credit card again.
Fact: Immediately after filing personal bankruptcy you can apply for a secured credit card and begin rebuilding your credit rating. Once you have re-established your credit rating you will be able to get unsecured credit again. Often much quicker than you think.
Myth: After filing a consumer proposal I will have to wait until it is completed before I can start rebuilding my credit rating.
Fact: After filing a consumer proposal you can start rebuilding your credit rating immediately.
Myth: After filing personal bankruptcy I will have to wait 7 years to start rebuilding my credit rating.
Fact: After filing personal bankruptcy you can start rebuilding your credit rating immediately.
If you have more questions about how bankruptcy or a consumer proposal will affect your credit, book a free consultation with one of our licensed trustees.
