Credit Implications And Cost Of Bankruptcy

2009-04-21

I will refer you to the Bankruptcy FAQ for general questions about bankruptcy - you can find it under the menus at the top of the page. The two main things you need to understand are what assets are exempt, and what "Surplus Income" is - you will find those answers in the FAQ and in some of the prior blog postings. With respect to your credit rating - A credit rating is, first and foremost a collection of facts - a person has a job, paid their phone bill last month, filed bankruptcy etc. From those various facts a credit rating is derived. The general rule is that a fact is kept on your credit history for six years, so if you file bankruptcy that fact will remain on your history for six years after you complete the process. However, all of the other facts that happened after the bankruptcy will also be there - you have a job, you continued to make your car payments and so on. In my experience, it generally only takes twelve to eighteen months after a bankruptcy to restore ones credit rating to "OK", notwithstanding the fact of the bankruptcy. With respect to the amount of payments you might be required to make, that will depend on your income and other factors and I would ask that you contact the undersigned to discuss that matter in more detail than I can do in this blog post. Ian Schofield MNP Regina 306-790-7904

Latest Blog Posts

2025-06-19

Options to consider if you can’t pay back your student loans

Dean Prentice

With the school year beginning and thousands of Canadian students beginning a new semester of post-secondary studies, all those hard-earned dollars from summer gigs are now being applied to tuition, books, transportation, housing, and supplies. 

Read More

2025-06-18

How to budget for inflation

John Athanasiou

The cost of daily goods has been rising over the past few years — increasing the price of food, gas, clothing, and many other essential items that Canadians need in their day-to-day lives.

Read More

2025-06-16

What are the pros and cons of a Consumer Proposal?

Joey Zanni

Bankruptcy Alternatives to Bankruptcy

Let’s review what a Consumer Proposal is, as well as the pros and cons of filing a Proposal, to help you determine if it’s the right solution for your unique situation.

Read More

Consultation icon