How long does it take to get my credit back after bankruptcy?

Posted in Credit Repair
Posted by J. Douglas Hoyes, CA, CPA, LIT, CIRP, CBV

Most of the people I meet with ask me: “How long does it take to get my credit back after my bankruptcy or consumer proposal is over?” There are two answers to this question.

First, your credit report will have a record of your bankruptcy for a minimum of six years after you are discharged; a proposal remains on your credit report for a minimum of three years after you have completed all of your payments. This means that if you apply for a loan or credit card during these time periods, the lender will know that you went bankrupt or filed a proposal, which may make it more difficult to borrow.

The second answer is that your credit report is only one factor in your ability to borrow. Other factors include your income, a co-signor, and the amount of your down payment or security deposit. If you can demonstrate that you have learned how to handle money, you will repair your credit relatively quickly.

My advice is to start saving money. Once your bankruptcy or proposal is over, and you have some savings to use as an emergency fund, consider using some of your savings to get a secured credit card.

Next build up some savings. These savings can be used as a down payment on a car, or even for a mortgage on a house. How quickly you repair your credit depends on you, and your ability to save money.

Bankruptcy or a consumer proposal is the first step in rebuilding poor credit. Find out how. Talk to a Hoyes, Michalos bankruptcy trustee today.