0027 - Debt Related Queston: Bankruptcy Question # 0027

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QUESTION #0027:

If I go bankrupt and am relieved of my debts, how long does this stay on my record? Will I ever be able to get a credit card again, or buy a house?



ANSWER:

During the bankruptcy process the debtor is not permitted access to credit. Once the process is complete and you are discharged from the bankruptcy, this ban on credit is lifted. The credit bureaus will retain the bankruptcy information for six years per www.equifax.ca or www.tuc.ca. This doesnít mean you canít obtain credit, it just means the creditor will have access to this information when reviewing your application. If your credit score is low you may choose to obtain a secured credit card. You will have to remit a security deposit to the lender, and they will hold this for as long as you have the card. This is not a prepaid card. The deposit is only used if you default on your payments. A secured credit card is a simple way to start rebuilding your score. Be advised, the only way to improve your score is to use a firm that reports top credit agencies (credit cards, bank loans, etc.) and to pay off your bills on time. Once you have rebuilt your credit score your eligibility for a mortgage will be improved. For more information on secured credit cards and a free mortgage calculator, visit www.moneytools.ca. This is a federal website provides financial consumer information to the general public.