If you are already considering declaring bankruptcy or filing a proposal, chances are your credit has already been greatly affected. Individuals who declare bankruptcy often have a similar credit rating to those who are considering doing so.
If it’s not already the case, you will be assigned a low credit rating once you declare bankruptcy. A consumer proposal will have a similar effect on your credit. This rating goes into effect the moment you file for bankruptcy. André Gabbay and Associates Inc. Licensed Insolvency Trustee can offer advice on how to quickly raise your credit score following your discharge from bankruptcy.
However, the bankruptcy or proposal will be removed from your credit report after some time. The time between your bankruptcy or proposal and its exclusion from your credit report depends on your place of residence and on the circumstances associated to your case.
You can start to get credit again following your release, but as no one is required to give you credit, you will need to convince the person or institution to grant it to you. In the event of a proposal, you can get credit during the bankruptcy but again it depends on your ability to convince an individual or an institution to grant you a loan.
For more information about the effects of a bankruptcy or proposal on your credit rating, please call André Gabbay and Associates Inc. Licensed Insolvency Trustee at 514-316-7057.