Personal Budget Help - Latest Comments

Re: Alternatives to Bankruptcy

Johanus — Mon, 21 Nov 2011 15:35:36 -0000

That’s interesting to note, Darren. The trustee’s that I spoke with all state that unlike a bankruptcy the consumer proposal will drop off your credit report after three years from completion, rather than the 7 years of a bankruptcy. And the rating, while still bad, is different, as a bankruptcy gives you the worst rating of “R9″, whereas a consumer proposal gives you an “R7″ rating. See http://www.ic.gc.ca/eic/site/o... for more about how the rating systems work.

Re: Alternatives to Bankruptcy

Darren R — Mon, 21 Nov 2011 15:35:09 -0000

A consumer proposal is treated just like a bankruptcy at the Financial institution level. It is even recorded on your credit report as a bankruptcy. Here is how it works: when you file it takes about a year, and then about a year to be discharged. Two years after you have been discharged you can apply for credit again. 7 years after discharge the bankruptcy falls off the system.

Re: Alternatives to Bankruptcy

Johanus — Mon, 21 Nov 2011 15:33:00 -0000

The three years is if you do a consumer proposal (and the rating isn’t as bad as with a bankruptcy). It’s seven for bankruptcy. Have a look at the original post to see what the difference is between the two.

Re: Alternatives to Bankruptcy

Niel M — Mon, 21 Nov 2011 15:32:03 -0000

I thought that they had changed the term of credit waiting time to 3 years now. No?