Rebuilding Credit after a bankruptcy or a proposal
Tip
The consumer has a right to place a 100 word statement (50 recommended) on the credit bureau file, to be given to anyone who obtains a future report.
After you have been discharged from bankruptcy or completed your proposal, you may be a good credit risk, since you have no debt. Naturally, you will find it a little harder to get credit until you can re-establish a good credit rating.
You can get credit again after a bankruptcy or a proposal. The bankruptcy and proposal laws of Canada are intended to give you a fresh financial start. The ability to rebuild credit is part of that new start.
Tips on Rebuilding your Credit Rating:
When a person declares bankruptcy the Office of the Superintendent of Bankruptcy notifies the credit bureau. This information stays on your credit bureau report for 6 years after the date of your discharge. A proposal stays on your credit bureau report for 3 years after your proposal was completed. You can start to re-establish your credit by doing the following:
Talk to your banker and say you want to re-establish your credit rating;
Open a savings account;
Be a regular and persistent saver. Use the common techniques I am sure you have heard of:
1) Pay yourself first;
2) Take your next raise and save it;
3) Save 5 % of your pay;
4) Have your savings come right off your pay and into a separate savings account;
Take out a small loan using the savings account as collateral, and then pay it back;
