Rules · Consumer proposals, bankruptcies and your credit report
Consumer proposals, bankruptcies and credit report timelines
A consumer proposal stays on a credit report for three years after completion, or six years from filing, whichever comes first. A first bankruptcy stays for six years after discharge. Only a licensed insolvency trustee can administer either.
Published values
| Item | Value | Note | Publisher |
|---|---|---|---|
| Consumer proposal on a credit report | 3 years after completion, or 6 years from filing | Whichever comes first. | Government of Canada |
| First bankruptcy on a credit report | 6 years after discharge | For a first bankruptcy. | Government of Canada |
| Who can administer a consumer proposal or bankruptcy | A licensed insolvency trustee | Trustees are regulated by the Office of the Superintendent of Bankruptcy Canada. | Government of Canada |
| National credit reporting bureaus in Canada | Equifax Canada and TransUnion Canada | A free copy of your credit report is available from each bureau. | Financial Consumer Agency of Canada |
A blank value means we could not verify a current figure against the publisher's own publication. We leave it blank rather than publish a guess.
Who can administer insolvency
Only a licensed insolvency trustee can administer a consumer proposal or a bankruptcy. Trustees are regulated by the Office of the Superintendent of Bankruptcy Canada, and they are the people who can tell you what each option would actually mean for your file.
Consumer proposals
A consumer proposal is a formal offer to creditors, made through a trustee, to settle debts for less than the full amount over a set period. It stays on a credit report for three years after completion, or six years from filing, whichever comes first.
Bankruptcy
A first bankruptcy stays on a credit report for six years after discharge. The consequences go beyond the credit report: assets, income and future borrowing are all affected, which is why it should be a considered decision with professional advice rather than a first response to pressure.
What these timelines are not
A timeline is not a countdown to normal borrowing. Lenders apply their own criteria, and rebuilding a file takes consistent behaviour over time. Nor is either option free: both carry costs and both should be compared against a consolidation option before you commit.
What a consumer proposal actually is
It is a legal process, not a negotiation you can run yourself. A licensed insolvency trustee files it, creditors vote on it, and if it is accepted the debtor makes payments to the trustee for distribution. It stops most collection action while it is in force, and it is recorded on the credit report on the timeline in the table above.
What bankruptcy involves
Bankruptcy assigns assets to a trustee for the benefit of creditors, subject to provincial exemptions. It may require payments from income, and it carries obligations such as counselling and disclosure. It is generally the last option rather than the first, and the differences between it and a proposal are worth understanding before either is chosen.
Rebuilding afterwards
Both options leave a mark that outlasts the process itself. Rebuilding is unglamorous: pay on time, keep balances low relative to limits, do not apply for credit repeatedly, and check your report from both national bureaus for errors. Time does the rest, and no company can shorten it by deleting accurate information.
Questions
How long does a consumer proposal stay on my credit report?
Three years after completion, or six years from filing, whichever comes first.
How long does a first bankruptcy stay on my credit report?
Six years after discharge for a first bankruptcy.
Who can file a consumer proposal?
Only a licensed insolvency trustee can administer a consumer proposal or a bankruptcy. Trustees are regulated by the Office of the Superintendent of Bankruptcy Canada.
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Sources
- Consumer proposal on a credit report —
- First bankruptcy on a credit report —
- Who can administer a consumer proposal or bankruptcy —
- National credit reporting bureaus in Canada —
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.