2026-07-15
Bankruptcy versus Consumer Proposal timelines: What to expect from start to finish
Credit Cards With Zero Balances
2010-02-18
Author: Bradley Milne
Hello,
Any credit cards, including those with zero balances, should be given to the Trustee at the time you are filing for bankruptcy.
Generally speaking, obtaining further credit while in bankruptcy is discouraged. However, the Bankruptcy & Insolvency Act does state that if you are borrowing funds greater than $1,000 you must disclose to the lender that you are in bankruptcy. So you can see that you are not prohibited from getting credit, however, in my view (and that of the Registrar in our jurisdiction), obtaining further credit is not encouraged.
As an alternative, some people obtain a secured credit card where you put down a deposit and have use of the card up to that amount.
Bradley Milne
CIRP, LIT
Senior Vice-President
Servicing: Brandon, Killarney, Portage la Prairie, Neepawa, Virden, Souris, Deloraine
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