September 5, 2017

The urban myth says “I won’t be able to get credit again for at least seven years”… Is there any truth to that?

Many people are concerned not only with getting out of debt but also with reestablishing credit following a bankruptcy or proposal filing.

While it is true that an insolvency proceeding will show up on a credit report for 7-14 years it is also true that most insolvents (bankrupts and proponents) are able to obtain credit much more quickly following discharge or completion than many expect.  Some credit is even available to some individuals during their proceding.

Whether you file a proposal or a bankruptcy, in general creditors like to see you discharged before granting more credit to you.