How will bankruptcy or a consumer proposal affect my credit rating?

How will bankruptcy or a consumer proposal affect my credit rating?

As a general rule, any time you don’t pay your debts in full, your credit rating will be affected. Accounts which are in collections are listed as R9, the same as when that account is listed in a bankruptcy or consumer proposal. Once a consumer proposal is complete, it will change to R7, and remain for three years. A bankruptcy will remain at R9 for seven years. This does not mean that a person cannot get credit. Rather, it is a way to notify lenders of the increased risk in lending to someone with a past history of insolvency or inability to pay.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.