We were asked: What credit rating penalties would apply to our services?
We offer two main services: a consumer proposal, which is a formal debt settlement, and bankruptcy. Consumer Proposal and Credit Rating Penalties Filing a consumer proposal, which stops interest, prevents creditor action and compromises debt, results in a R7 (bad) credit rating. This would stay on your credit bureau report for three years after your proposal…
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Repercussions Of A Joint Credit Card When Filing A Consumer Proposal
DYLAN ASKED: My credit card is in both mine and my dad’s name. Will including that debt in a consumer proposal hurt his credit rating? The credit card that you have with your dad is a joint account. It doesn’t matter who is primary or secondary on the account; if two people have borrowed money…
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When can I start rebuilding my credit?
You should start rebuilding your credit right away. A lot of people who make a consumer proposal or file personal bankruptcy think that they will have to wait until their filing is completely off of their credit report to start rebuilding their credit rating. While filing either results in a negative mark on your credit bureau…
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How To Rebuild Your Credit Rating
Credit rating is a fluid concept and is always changing. No matter what you do, including filing personal bankruptcy or a consumer proposal, you can always rebuild your credit rating. How can I rebuild my credit rating? Your credit rating is like a report card, when you file personal bankruptcy or a consumer proposal, you…
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Myth Vs. Fact: Credit And Rebuilding
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…
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Credit Cards After (And During) Bankruptcy
Many people are concerned that they won’t be approved for a credit card after being discharged from bankruptcy. The truth is, you can most definitely get a credit card at this time. Here are three ways to get a credit card after being discharged (and some during your bankruptcy). Secured Credit Card A secured credit…
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How long does filing a Consumer Proposal affect your credit rating in Canada?
Filing a consumer proposal results in an R7 credit rating. There is no doubt that filing a consumer proposal damages your credit rating. Anything short of paying your creditors in full with interest in the normal course of business will result in a bad mark on your credit bureau report. The R7 credit rating remains on…
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Is it better to make a consumer proposal or file bankruptcy when it comes to affecting credit rating?
We were asked: What’s the difference between a consumer proposal and filing bankruptcy when it comes to affecting your credit rating? My wife and I both have ratings in the mid to low 600s but payments are tight with a combined balance of approximately $50,000. Answer: Consumer proposal results in a R7 (bad) credit rating, which…
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Understanding Your Credit Report
Many Canadians request a free copy of their credit report through Equifax or Transunion, but once they receive their report, they have a hard time reading it. If you’re not used to reading credit reports, they can definitely be difficult to understand. Here are some points to remember when reading your credit report: Included Information…
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How can I build my credit rating fast?
RACHEL ASKED: I claimed bankruptcy due to a divorce and was released two years ago. What is the best way to build my credit fast? ANSWER: It is possible to rebuild your credit rating after filing personal bankruptcy, however it does take time. Rebuilding your credit rating is a process. The first step when trying…
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