How Long Does Bankruptcy Stay on Your Credit Report in Canada?

The Short Answer

If you filed for bankruptcy in Canada and you are wondering how long it will follow you, here is the straightforward answer: a first-time bankruptcy stays on your credit report for six years after your date of discharge. A second bankruptcy stays for fourteen years. But the timeline varies slightly depending on which credit bureau is reporting, and the rules for consumer proposals are different again.

Understanding these timelines is important, but here is what matters even more: you do not have to wait for the bankruptcy to drop off your report before you start rebuilding. Many Canadians reach a credit score of 650 or higher within two years of discharge, even while the bankruptcy notation is still visible. This guide covers every detail of the timeline, what the ratings on your report mean, and exactly how to start rebuilding today.

Not sure where you stand right now? Take our recovery quiz to get a personalized starting point.

How Long Bankruptcy Stays on Your Credit Report

The two major credit bureaus in Canada, Equifax Canada and TransUnion Canada, each maintain their own policies on how long a bankruptcy appears. The rules are similar but not identical.

Equifax Canada

• First bankruptcy: Removed 6 years after the date of your discharge (not the filing date).
• Second bankruptcy: Removed 14 years after the date of discharge.

TransUnion Canada

• First bankruptcy: Removed 6 to 7 years after the date of discharge, depending on provincial reporting standards.
• Second bankruptcy: Removed 14 years after the date of discharge.

The key date is your discharge date, not the date you filed. The discharge is the legal order that releases you from the obligation to repay the debts included in your bankruptcy. For a straightforward first-time bankruptcy with no opposition, discharge typically happens nine months after filing. If you were required to attend credit counselling sessions or make surplus income payments, the timeline may have been extended to 21 months.

To find your exact discharge date, check the Certificate of Discharge issued by your Licensed Insolvency Trustee (LIT) or search the federal Office of the Superintendent of Bankruptcy public records database.

Why the Bureaus Differ Slightly

Equifax and TransUnion operate independently and set their own data retention policies within the framework of provincial consumer reporting legislation. Most provinces allow a maximum reporting period of six to seven years for a first bankruptcy. This is why TransUnion’s range extends to seven years in certain provinces while Equifax adheres to a strict six-year standard across the board. Always check both of your reports because the bankruptcy may disappear from one bureau before the other.

How Long a Consumer Proposal Stays on Your Credit Report

A consumer proposal is often described as a less severe alternative to bankruptcy, and its reporting timeline reflects that.

• Equifax Canada: Removed 3 years after you complete all payments under the proposal.
• TransUnion Canada: Removed 3 years after completion or 6 years from the date of filing, whichever comes first.

Consumer proposals typically take three to five years to complete, depending on the terms you negotiate with your creditors through your LIT. If you complete your proposal faster by making lump-sum payments, the notation will fall off your report sooner because the three-year clock starts ticking from your completion date.

For example, if you filed in January 2024 and completed payments by January 2026, Equifax would remove the notation by January 2029 and TransUnion by the earlier of January 2029 or January 2030. Finishing early has a clear advantage.

Provincial Differences

Bankruptcy reporting in Canada is governed by a combination of federal insolvency law and provincial consumer reporting legislation. In practice, the timelines are largely consistent across provinces, but there are a few nuances worth noting.

• Ontario, British Columbia, Alberta, and Quebec all follow the standard six-year (first bankruptcy) and fourteen-year (second bankruptcy) framework.
• Nova Scotia and New Brunswick have consumer reporting acts that allow reporting for up to seven years for certain insolvency events, which is why TransUnion sometimes reports up to seven years.
• Manitoba and Saskatchewan follow similar rules, with some minor differences in how the provincial consumer protection offices interpret reporting timelines.

The differences are small, but they are real. If you live in a province where the reporting window extends to seven years, you may see the bankruptcy on your TransUnion report for an extra year compared to your Equifax report. The best approach is to check both reports annually and contact the bureau directly if information remains past the expected removal date.

What R9 and R7 Ratings Mean

When you look at your credit report, you will see a rating code next to each credit account. These codes range from R0 to R9, where the “R” stands for revolving credit (there are also “I” codes for installment credit). Two ratings are directly tied to insolvency:

R9: Bankruptcy

An R9 rating is the most severe negative mark on the Canadian credit rating scale. It means the account was included in a bankruptcy filing and the debt was written off. Every credit account that was part of your bankruptcy will carry an R9 designation. This rating tells future lenders that you were unable to repay the debt and that the creditor received nothing (or a partial distribution through the bankruptcy estate).

R7: Consumer Proposal or Debt Management Plan

An R7 rating indicates that the debt is being repaid through a consumer proposal, a debt management plan arranged through a credit counselling agency, or a similar consolidation arrangement. While still negative, an R7 is considered less damaging than an R9 because it shows you made an effort to repay at least a portion of what you owed.

How These Ratings Affect Your Score

Both R9 and R7 ratings cause significant drops to your credit score. An R9 can push your score into the 300-450 range (out of a maximum of 900 in Canada). An R7 typically results in a score between 400 and 500. These ratings influence your score most heavily in the first two years, with the impact gradually diminishing as you add new positive credit history.

Use our calculator to estimate how long it might take you to reach specific score milestones based on your current situation.

What Happens When Bankruptcy Drops Off Your Report

When the reporting period ends, the credit bureau removes the bankruptcy notation and all associated R9 or R7 ratings from your report. This removal happens automatically. You do not need to file a request, although it is wise to check your reports around the expected removal date to confirm everything has been updated correctly.

Here is what to expect once the bankruptcy is gone:

• Your score may jump. Removing the bankruptcy notation can produce an immediate increase of 50 to 100 points or more, depending on the rest of your credit profile.
• Old accounts disappear. The individual accounts that carried R9 ratings will also be removed. Your credit history may look thin as a result.
• Lenders see a cleaner file. Without the bankruptcy on your report, you become eligible for a wider range of credit products at more competitive interest rates.

However, if you have not built any new credit during the waiting period, you may find that your report is essentially blank. A thin file with no active accounts is better than one with a bankruptcy, but it still limits your options. This is exactly why starting the rebuilding process early, while the bankruptcy is still on your report, is so important.

Can You Rebuild Credit Before Bankruptcy Drops Off?

Yes, absolutely. This is the single most important message in this entire article. You do not need to wait six years (or longer) in credit limbo. The moment you receive your Certificate of Discharge, you are legally free to start applying for new credit.

The Canadian credit scoring system is designed to reward recent positive behaviour. While the bankruptcy notation acts as a drag on your score, consistent on-time payments on new accounts create a rising tide that lifts your score month after month. Think of it as two opposing forces: the bankruptcy pulls your score down, but every positive payment pushes it up. Over time, the positive history wins.

Here is what the data shows:

• Canadians who open a secured credit card within three months of discharge and use it responsibly typically reach a score of 600-620 within 12 months.
• Those who add a second credit product (such as a credit-builder loan) around the nine-month mark often reach 650-680 within 18 to 24 months.
• By the time the bankruptcy falls off the report, proactive rebuilders frequently have scores of 700 or higher.

Compare that to someone who does nothing and waits: after six years with no active credit, they may have a score of zero or no score at all because there is nothing for the algorithm to evaluate.

For a detailed action plan, read our step-by-step bankruptcy recovery guide.

Month-by-Month Rebuilding Timeline After Discharge

The following timeline assumes you have just received your discharge from a first-time bankruptcy. Adjust the starting point if you are further along in the process.

Months 1-2: Assess and Prepare

Pull your credit reports from both bureaus. Sign up for Borrowell for free weekly Equifax score updates, and request your TransUnion report by mail. Verify that all discharged debts show a zero balance with an R9 rating and dispute anything inaccurate. Build a small emergency fund of $500 to $1,000 and set up a budget using a tool like KOHO to track spending in real time.

Months 3-4: Open Your First New Credit Account

Apply for a secured credit card. The Capital One Secured Mastercard is one of the most accessible options, with a refundable deposit starting at $75. Use it for one or two small recurring purchases each month, keep utilization below 30 percent, and pay the full statement balance by the due date every single month.

Months 5-8: Stay the Course

Maintain perfect payment habits and resist applying for additional credit. Monitor your score monthly through Borrowell and increase your secured deposit if your issuer allows it. A higher limit with the same low spending gives you a better utilization ratio.

Months 9-12: Add a Second Credit Product

Apply for a credit-builder loan from a credit union or a second secured card. Having two active accounts diversifies your credit mix, which counts for about 10 percent of your score. After 12 months of perfect payments, ask your issuer about graduating to an unsecured card and getting your deposit back.

Months 13-24: Accelerate Your Progress

Target a score of 650 or higher. You may now qualify for an unsecured card with modest rewards. Consider reporting your rent payments to the bureaus for an additional positive tradeline, and set your sights on 680+, which opens the door to competitive interest rates on car loans and puts you on the path toward mortgage qualification.

For the full detailed version of this plan, read our complete month-by-month bankruptcy recovery guide.

Products That Help Rebuild Credit After Bankruptcy

Not every financial product is available to you right after discharge, but several are specifically designed for people in your situation.

• Secured credit cards. The Capital One Secured Mastercard is a strong option because of its low minimum deposit, wide acceptance, and track record of graduating cardholders to unsecured products.
• Prepaid cards with budgeting features. KOHO offers a prepaid Mastercard with automatic savings features and no overdraft risk. Use it for day-to-day spending while reserving your secured card for small recurring charges.
• Free credit monitoring. Borrowell provides free access to your Equifax credit score and report, updated weekly. Sign up early so you can track your progress and catch errors.
• Credit-builder loans. Available from many Canadian credit unions, these loans hold the funds in a locked savings account while you make monthly payments. Each payment is reported to the bureaus as an on-time installment payment.

Common Mistakes After Bankruptcy

Rebuilding after bankruptcy requires patience and discipline. Avoid these pitfalls that can derail your recovery.

Waiting Too Long to Start Rebuilding

Every month without an active credit account is a missed opportunity to build positive payment history. Start the rebuilding process within the first three months of your discharge.

Applying for Too Many Products at Once

Each credit application generates a hard inquiry. Submitting five applications in a week will not improve your odds of approval. It will lower your score and make you look desperate. Space your applications out by at least six months.

Carrying a Balance on Your Secured Card

The point of a secured card is not to borrow money. It is to prove you can use credit responsibly. Pay your full statement balance every month. Carrying a balance costs you interest and increases your utilization ratio, both of which hurt your score.

Falling for Credit Repair Scams

In Canada, no company can legally remove accurate information from your credit report before the standard reporting period expires. If someone promises to erase your bankruptcy for a fee, they are either lying or planning to dispute accurate information, which is a temporary fix at best. Stick with the fundamentals: on-time payments, low utilization, and time.

Ignoring Your Credit Report

Errors on credit reports are more common than you might think. Discharged debts sometimes continue to show as owing. Old accounts may not reflect the R9 rating accurately. Check your report at least every three months and dispute any inaccuracies promptly with the relevant bureau.

Co-Signing for Someone Else

After bankruptcy, your own credit recovery must be your top priority. Co-signing a loan for a friend or family member puts your rebuilding progress at risk. If the other person misses payments, those missed payments appear on your report. Politely decline any co-signing requests until your own credit is fully restored.

Frequently Asked Questions

Does bankruptcy affect my spouse’s credit in Canada?

No, not directly. In Canada, your credit report is individual. Your bankruptcy will not appear on your spouse’s credit report unless they were a co-borrower or guarantor on a debt included in your bankruptcy. However, if you had joint debts, your spouse remains responsible for the full balance of those debts. The creditor may pursue your spouse for payment, and if those joint accounts go into arrears, your spouse’s credit will be affected.

Can I get a mortgage after bankruptcy in Canada?

Yes, but timing and preparation are critical. Most A-lenders (major banks) require that your bankruptcy has been discharged for at least two years, that you have re-established at least two active credit accounts, and that your score is 680 or higher. Some B-lenders will consider applications sooner at higher interest rates. CMHC-insured mortgages generally require the bankruptcy to be fully removed from your report. Start rebuilding immediately after discharge so that you have a strong credit profile when the time comes to apply.

Will my employer find out about my bankruptcy?

Bankruptcy filings in Canada are public records and are listed in the Office of the Superintendent of Bankruptcy’s database. However, most employers do not routinely check this database. Certain regulated industries, such as financial services, may require credit checks as part of employment screening. Your credit report will show the bankruptcy during the reporting period, but an employer needs your written consent before pulling your credit report under Canadian law.

How is a consumer proposal different from bankruptcy for credit purposes?

A consumer proposal results in an R7 rating on affected accounts rather than the R9 rating assigned during bankruptcy. The R7 is still negative but is viewed as less severe by lenders because it demonstrates you repaid a portion of your debts. Consumer proposals also have shorter reporting timelines: three years after you complete the proposal or six years from filing, whichever comes first. The rebuilding strategy after a consumer proposal is essentially the same as after bankruptcy: secured credit cards, on-time payments, low utilization, and patience.

Should I file for bankruptcy or a consumer proposal?

This decision depends on your total debt, income, assets, and personal circumstances. A Licensed Insolvency Trustee (LIT) is the only professional legally authorized to administer both bankruptcies and consumer proposals in Canada. Your initial consultation with an LIT is typically free, and the Financial Consumer Agency of Canada (FCAC) provides resources to help you understand your options. As a general guideline, a consumer proposal may be preferable if you have a stable income and want to keep certain assets, while bankruptcy may be more appropriate if your debts are overwhelming and your income is limited.

Your Next Steps

The timeline for bankruptcy on your credit report is fixed by the credit bureaus and provincial legislation. What is not fixed is where your credit score stands when that notation finally disappears. You have the power to arrive at that six-year mark with a score of 700 or higher, or you can arrive with a blank file and start from scratch. The difference comes down to what you do today.

Start by checking your credit report through Borrowell to see exactly where you stand. Take our recovery quiz to get a personalized rebuilding plan. And if you are ready for a detailed month-by-month strategy, read our complete bankruptcy recovery guide.

Bankruptcy is not the end of your credit story. For many Canadians, it turns out to be the beginning of a much stronger financial chapter.