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Non-discharged bankruptcy vs consumer proposal ?

I had filed for a consumer proposal a year ago and I have been paying all my payments on time. Few days ago my bank said that my credit history shows “non discharged bankruptcy” I was shocked. I never filed for bankruptcy through my trustee. Please advise if non discharged bankruptcy is the same as consumer proposal. Thank you.

Posted from: Ontario

One Response to “Non-discharged bankruptcy vs consumer proposal ?”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

No, a bankruptcy and a consumer proposal are not the same. The filing of an assignment in bankruptcy and a consumer proposal both fall under the same legislation, the Bankruptcy and Insolvency Act. Although the filing of an assignment in bankruptcy and a consumer proposal are different, they do tend to both be reported as the same mark with the credit bureau though. The North American Standard Account ratings system reports accounts with ratings ranging between R0 – too new to rate; or approved but not used to an R9 – which means a bad debt; placed for collections; moved without giving a new address or a bankruptcy. Some credit rating organizations will place a proposal as an R9 until such time as the proposal is complete and then change the rating to a R7 – making regular payments through a special arrangement to settle your debts. If you have concerns about your credit rating some credit bureaus will allow you to make comments on your report for potential lenders to see. If you would like to make a comment or have any questions about your credit rating or your credit score you should contact the credit bureaus directly as your trustee in bankruptcy or administrator of your consumer proposal will not have direct contact with them. In Canada the primary credit bureaus are Equifax Canada or Trans Union Canada.