Credit record before and after filing

October 19th, 2006 by Questions

My husband and I bought a business. This was done after we consulted with the bank\’s financial consultant and her supervisor and my accountant who was recommended by the Canadian Small Business service in our town.
I gave them the financial statements so they could advise me if this was a solid business to buy. Everyone was in agreement. The bank gave me the money through a government guaranteed loan. We received a lot of money from the bank to purchase this business. We also increased the Home equity loan on our house to pay for start up costs. After a couple of months we began to realize that most likely there was something wrong with the financial statements that the previous owners gave us. We required more and more money to keep this business going…..We tried for a year putting more and more of our own money into this business until about 1 1/2 years in we realized we had to declare Bankruptcy; we consulted a trustee and after several visits he said we should file a consumer proposal. It was approved.
When we are done with this and apply for credit will they take into consideration our credit rating before all this happened?

Questions

One Response to “Credit record before and after filing”



, A licensed trustee said:

Unfortunately, your “good credit history” from before your business failure has probably been lost both by the proposal and simply by time.

You should assume once your proposal has been completed that you are starting “fresh” – your prior history is not likely to be taken into account, rather your new credit history will be based on your conduct from the date you filed the proposal going forward.

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