Recovering from debt after a consumer proposal or bankruptcy is entirely possible.

How Does A Consumer Proposal Affect Your Credit Rating?

Most credit reporting agencies in Canada will place a note on your file indicating that you have filed a consumer proposal. This financial note will remain on file for three years after you finish making all proposal payments.

Your credit report will be coded as an R7 which means you have entered into an arrangement to settle your debts with your creditors. It is the same rating as someone would receive in a debt management plan. A perfect credit rating is an R1, and bankruptcy is an R9, so a proposal is sometimes viewed as slightly better than a bankruptcy.

The more important question may not be what is your credit rating after your consumer proposal but rather how is your financial condition today? If you are missing payments or do not have access to further credit due to carrying too much debt, then the sooner your deal with that debt, the sooner you can begin the debt recovery process.

Rebuilding Your Credit After a Proposal

At Hoyes Michalos we will show you the steps to take to rebuild your credit after you have completed your proposal. This includes access to our ‘for clients only’ website with useful information about how to recover from a Consumer Proposal or Bankruptcy. We also offer a free “Fresh Start Recovery Program” to help you learn how to rebuild your credit. This program is an additional tool to help you succeed and is exclusively offered by Hoyes Michalos.

Financial Debt Recovery Process

Getting started on the road to financial recovery means making the first call for debt help.

Understand more about how a consumer proposal is the first step in improving your credit by reading our article A Clean Credit Report Does Not Equal A Good Credit Report.

If you are struggling with too much debt, call us today at 1-866-747-0660 or email us for a free debt evaluation. We can help you eliminate your debt so you can begin to build a new life, and a new credit history.

Begin Your Financial Recovery