One of the main concerns of potential, current, and former debtors that file a consumer proposal or personal bankruptcy, is the impact on their future credit report. Once an individual files for bankruptcy or a consumer proposal, their credit report will indicate as such. Following an insolvency proceeding, assuming the debtor has fulfilled their duties, the credit report of the individuals will show the insolvency filing for a certain time period and respective debts affected.
As Licensed Insolvency Trustee’s we answer many calls from former clients regarding their credit report disputes and issues. Below is a list of common questions that we receive from debtors, and responses to their queries:
Q: How long does my bankruptcy or consumer proposal filing stay on my credit report?
A: Upon all of your duties as a bankrupt/consumer debtor are fulfilled:
- Bankruptcy – will remain on your credit report for six (6) years from your date of Discharge
- Consumer Proposal – will appear for a further three (3) from the date that a Certificate of Full Performance is issued.
Q: Should I check to make sure my credit report has been updated after the necessary period of time has elapsed? If so, when?
A: Yes, you are encouraged to obtain your own credit report from both TransUnion and Equifax within two (2) months of your date of discharge from a bankruptcy, or obtaining your Certificate of Full Performance for a Consumer Proposal. You can obtain these reports free of charge, and they will provide your current status.
We further recommend that you perform a credit bureau reports yearly, and more particularly:
- at the end of the six (6) year period from the date of your Discharge from Bankruptcy,
- at the end of the three (3) year period from the date of the Certificate of Full Performance for Consumer Proposals, to ensure the credit bureaus have updated your file.
Q: I just pulled my credit report after the required time and it still shows some debts outstanding, why is this? Can’t you do something about it?
A: It is common than either TransUnion or Equifax may not have updated their records to reflect the precise information as required. Once a proceeding has been completed, we forward the necessary documents to the Office of the Superintendent of Bankruptcy (OSB) who then provides the information to Equifax and TransUnion. Unfortunately, once the file has been discharged, the credit bureaus will not communicate with the Trustee/Administrator.
Should this issue occur, we recommend that you submit a credit dispute request to the credit bureau whose report does not reflect your correct information.
Q: How do I submit a credit dispute request and get my report accurately updated?
A: Below are the direct links to both TransUnion and Equifax to correct or dispute inaccuracies on your credit report. Both websites have various options to dispute your reports with instructions on how to do so.
Q: What documentation will I need to request a credit dispute?
A: You will need the following:
- Copy of your Statement of Affairs
- Certificate of Discharge / Order of Discharge (for a bankrupt)
- Certificate of Full Performance (for Consumer Proposals)
- List of Creditors with Proven Claims
- Trustee’s Final Statement of Receipts and Disbursements
- Appropriate Identification
We stress to our current and former debtors, to ensure that all documents received from our office are kept in the same manner as any other legal documents.
Q: A credit grantor or third party states I have certain debts still showing on my report but I’m not sure what they are referring to. Should I request a credit dispute right away?
A: Before any action is taken, obtain your own credit bureau report to determine what the inaccuracies are. This will better help you to identify the problem, and file a dispute to have your credit file corrected.
This article has been prepared for the general information of our clients. Please note that this publication should not be considered a substitute for personalized advice related to your situation.