After Bankruptcy

What Happens AFTER Bankruptcy?

Around the 8th month after you’ve filed for bankruptcy, your Trustee will review your file and report on how you conducted yourself both before and during bankruptcy.   If you have performed all of the bankrupt duties, your Trustee will recommend an absolute discharge from Bankruptcy.   The majority of bankrupts are discharged in 9 months.

The Trustee will send you a Certificate of Discharge which will certify that all your debts have been erased.  The credit bureau will then be notified and in 6 years the record of the bankruptcy will be removed from your credit report.  If a former creditor tries to collect from you after your discharge, then your certificate of discharge will prove that you no longer owe them money.

How can I keep my finances under control after bankruptcy? 

It may be hard to keep your credit under control after bankruptcy since you have no debt and it will be a credit risk.   You CAN get credit again after a bankruptcy or proposal, and the laws in Canada are intended to give you the ability to rebuild your credit.

There are things you should do to start building a good credit rating again.  If you must borrow money, then borrow responsibly and make payments on time.   Make sure to read terms carefully and have a good understanding of the loan agreement.    Here are 3 tips BEFORE you borrow:

  1. Have a budget plan
  2. Find out exactly how much your payments for the new loan will be.  Do not borrow without knowing ALL terms.
  3. Don’t forget to leave extra for emergencies.   – If the new loan takes all of your monthly income, you cannot afford the loan.


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