FAQ

An annotation will be present for a period of six years after the discharge of the bankruptcy and the credit rating will vary according on the financial behaviour adopted by the bankrupt.

A debt consolidation is a personal cash loan offered by the bank to consolidate your debts.

A consumer proposal is a payment agreement permitted by law (through the Trustee) to be made with creditors. This is based on your income and expenses (your ability to pay) over a maximum period of 60 months, then your debts are cancelled.

Yes, it affects it as much as bankruptcy

There are 2 credit offices offering the possibility to consult and/or order your credit record : TransUnion Canada and Équifax Canada. You can order it free of charge by mail, however it will not include your credit rating. If you want to know your rating and what are your present and past debts appearing on your record, you will have to order it via internet. It will be more exhaustive, however a fee will apply

Credit ratings range from R1 to R9 and represent an assessment of your credit history. A rating of R1 means you are always paying on time while a rating of R9 indicates that you are not meeting the required payment deadlines on a monthly basis. You will have more details regarding the ratings between R1 and R9 on the following government website:

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Yes, but you have to make sure the payments are not late; the same goes for a vehicle under lease.

By law, a consumer proposal cannot be used as a reason to refuse to renew a mortgage. However, if your mortgage payments are late, the financial institution may refuse to renew you mortgage.

YES, neither the consumer proposal nor the bankruptcy have an impact on your passport.

In the vast majority of cases, the furniture and appliances in your residence are not seizable with exception of goods of a certain value (collector’s item, musical instruments, artworks).

NO, it is not possible to keep a credit card in both cases.

Since the Bankruptcy and Insolvency Act is a federal law, it is the government that seizes GST and federal tax refunds then sends them to the Trustee for a period of approximately one year.

Not unless you have joint debts. In this case, your spouse will remain liable for all joint debts. It will not affect her/his credit record, on the condition that he/she makes payments on time.

All debts must be disclosed. However, some of them are not releasable and will not be erased at the end of your bankruptcy or consumer proposal. The debts that cannot be released are as follows:

• Student loans (if the studies have been completed for less than seven years)
• Support payments
• Fines
• Debts obtained through fraud or misrepresentation are generally included in this category
• Amounts due to the Ministère du travail, de l’emploi et de la solidarité sociale (MTESS).

Bankruptcy and consumer proposal allow you to hand over your home and/or car to your creditor. However, even if you wish to keep them while continuing to make your payments in the amount and on the date agreed in the contract, the creditor(s) must still be notified of your bankruptcy or consumer proposal.