October 20th, 2009 by Questions
I have some debts I need to be rid of. Which affects my credit rating worse, filing for bankruptcy or a consumer proposal?
Posted from: Ontario
October 21, 2009 at 9:54 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
The filing of a bankruptcy has a more severe impact on your credit than a consumer proposal. A bankruptcy has a R-9 that is listed with the credit bureau for 6 years from the date you have been discharged from bankruptcy and a consumer proposal gives you an R-7 that is listed for 3 years from the date of completion of the proposal.
However, the more long term impact of a bankruptcy is that each and every time you apply for a loan it will typically ask whether or not you have ever filed a bankruptcy previously, and as soon as you answer yes to this question it will be more difficult to qualify for a loan.
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