7 years

here is a question i can’t even get accountants to answer…why is a bankruptcy on your records for 7 years after the bankruptcy is stayed? .. i am guessing this is the time at which the rate of second bankruptcies falls to almost zero..am i right or is this some unfair arbitrary number?

Posted from: Ontario

One Response to “7 years”

A licensed trustee said...

Actually, a bankruptcy may appear on your credit report for up to 6 years from the date of your discharge. The 7 year number came about by people combining the old bankruptcy period (9 months) with the 6 year warning period.

The place to look for these kinds of answers would be the credit reporting agencies themselves – Equifax and Trans Union being the two largest in Canada.

Is the number arbitrary? I suppose it is – the 6 year warning period for a bankruptcy has been in place for as long as I can remember. It is unlikely to change…