What does bankruptcy do to my credit rating?

Region: Ontario Answer # 0268

An important consequence of bankruptcy is its effect on your credit rating. Your credit rating is a record of your credit history maintained by credit bureaus such as Equifax and TransUnion.

These credit bureaus track how you handle credit generally and whether you make regular payments on time. Based on this on-going information, you are given a credit rating, ranging on a scale from R1, which is the best rating, to R9, which is the poorest rating before being bankrupt.

Your credit rating tells banks and other lenders how good you are at handling credit, and is usually checked by lenders before they decide whether to give you a credit card or a loan. Bankruptcy gives you the lowest possible credit rating, R9, and the fact that you went bankrupt stays on your credit record for six years with TransUnion and seven years with Equifax, after you are discharged from bankruptcy. As a result, lenders may be reluctant to give you loans or credit cards for quite some time.

What can I do to improve my credit rating once I have been discharged from bankruptcy?

Once you have been discharged from bankruptcy, make sure you send a copy of your discharge order to the credit bureaus so that your credit record can be updated. As time goes by, you can gradually work toward rebuilding a good credit rating. It may be difficult to get credit for a while, and it will generally depend on whether you have a steady income and how well you are able to convince lenders that you have become more financially responsible.


When you are in a situation of financial difficulty, there are many options to consider before filing for bankruptcy. For easy-to-understand debt solutions on your terms, contact our preferred experts 4Pillars and rebuild your financial future. With 60 locations across Canada, they will help you design a debt repayment plan and guide you with compassionate advice. No judgment. For help, visit 4Pillars or call toll-free 1-844-888-0442 .


Federal Pardon Waiver – Credit ONFederal Pardon Waiver – Credit ON


You now have 4 options:

Was your question answered?

Yes    No

What information would you like to see added?

Submit an Edit Request

What are your changes?*

Website by Turnbull & Co.


Page loaded. Thank you