How Long Does Bankruptcy Stay on Your Credit Report

Filing for bankruptcy is one of the most significant financial decisions you can make. It can bring much-needed relief from overwhelming debt, but it also affects your credit history and financial future. Understanding how long bankruptcy stays on your credit report and how to rebuild your credit afterward can help you move forward with confidence.

How Bankruptcy Appears on Your Credit Report

When you declare bankruptcy in Canada, the event is recorded in your credit history by both major credit bureaus - Equifax and TransUnion. This record serves as a public note that you were unable to meet your debt obligations and sought legal relief.

For most Canadians, a first bankruptcy remains on your credit report for six to seven years after they’re discharged (depending on the province and credit bureau). If you file for bankruptcy a second time, it can stay on your report for up to 14 years.

While that might sound discouraging, the good news is that the impact begins to fade long before the record disappears.

The Impact of Bankruptcy on Your Credit

Your credit report tells lenders how you manage debt. When bankruptcy is noted on your file, it signals that you were unable to repay your creditors as agreed. As a result, your credit score will drop significantly, and obtaining new credit will initially be difficult.

In Canada, credit scores range from 300 to 900, and filing for bankruptcy can reduce your score by 150 to 240 points or more, depending on your previous credit standing. You might find it harder to:

• Qualify for credit cards, loans, or mortgages.

• Rent an apartment or sign up for utilities without a deposit.

• Secure certain jobs where a credit check is required.

However, bankruptcy doesn’t mean your financial life is over. It’s a chance to reset, eliminate unmanageable debt, and start fresh. Over time, with consistent effort, you can rebuild your credit and demonstrate financial responsibility again.

What Happens After Bankruptcy Discharge

Once you’ve been discharged from bankruptcy, your debts included in the filing are legally eliminated. You’re free from the burden of collection calls and interest accumulation. However, the bankruptcy record continues to appear on your credit report for the designated period.

During this time:

• Lenders will see the bankruptcy note when reviewing your credit file.

• You’ll likely start with limited or secured credit options.

• Your credit score will slowly begin to recover as you demonstrate new, responsible habits.

It’s essential to remember that your credit report is a reflection of your financial behavior, not a permanent label. As you rebuild good credit practices, the impact of bankruptcy fades with time.

Read More:

• Smart Financial Habits to Stay Debt-Free for Life

• Top Credit Building Tips for Young Adults and Newcomers

• Bankruptcy Alternatives

• How Much Should You Save in an Emergency Fund

How to Rebuild Credit After Bankruptcy in Canada

Recovering from bankruptcy requires patience, but there are proven strategies that help you rebuild your financial foundation:

1. Review Your Credit Report Regularly

After discharge, request copies of your credit reports from Equifax and TransUnion to ensure all debts included in your bankruptcy show as “discharged.” Any inaccuracies could slow your recovery.

2. Start with a Secured Credit Card

A secured card requires a small cash deposit, which becomes your credit limit. By using it for small purchases and paying off the balance in full each month, you demonstrate positive credit behavior.

3. Pay All Bills on Time

Payment history accounts for 35% of your credit score, being the single most important factor. Set reminders or use automatic payments to avoid missed or late bills.

4. Keep Your Balances Low

Try to use less than 30% of your available credit limit. High utilization can negatively affect your score, even if you pay on time.

5. Avoid Unnecessary Credit Applications

Each hard inquiry can lower your score slightly. Apply for new credit only when necessary, and space out your applications.

6. Build a Budget and Emergency Fund

A realistic budget helps you manage expenses and avoid future debt issues. Even setting aside $25–$50 a month can grow into a small safety net that protects you from unexpected costs.

Rebuild Your Credit and Confidence with the Right Support

If you’re struggling with debt or considering bankruptcy, you’re not alone. According to the Office of the Superintendent of Bankruptcy Canada, over 100,000 Canadians file for insolvency each year. Taking this step can be the beginning of a healthier financial future.

If you’re feeling uncertain about your next steps, remember that you don’t have to face this journey alone. Your credit score is only one part of your financial story. What matters more is taking the first step toward recovery with the right support.

SCB Debt Solutions specializes in helping Albertans regain control of their finances through compassionate and professional guidance. Our experts will work with you to understand your unique situation, explore every available option, and build a personalized plan to help you move forward stronger and more financially confident.

Take the first step toward a fresh start today. Schedule your free and confidential consultation with SCB Debt Solutions and discover how you can rebuild your credit and reclaim your peace of mind.

FAQs on Bankruptcy Impact on Credit Score

How long does bankruptcy stay on my credit report in Canada?

A first bankruptcy usually stays on your credit report for six years (Equifax) or seven years (TransUnion) after you are discharged. In some provinces, Equifax may extend this to seven years. A second bankruptcy can remain on your record for up to 14 years with both credit bureaus.

Does bankruptcy affect my spouse’s credit score?

No. Your bankruptcy does not appear on your spouse’s credit report unless you share joint debts. However, if your spouse co-signed or is jointly responsible for a loan or credit card, the lender can still pursue them even after your bankruptcy.

What’s the difference between bankruptcy and a consumer proposal when it comes to credit reporting?

A bankruptcy stays on your report for 6–7 years after discharge (14 years for a second time), while a consumer proposal is removed three years after you finish the payments. Because of this shorter reporting period, some people choose a consumer proposal when they qualify and want to recover faster.