After a bankruptcy or consumer proposal
How bankruptcy and consumer proposals affect car financing in Alberta: discharge, credit-report timelines and what to ask lenders.
A bankruptcy or consumer proposal is a legal fresh start. It also leaves a mark on your credit report for a set time. Here's the quick reference. Our full guide goes into detail.
Quick reference
| Bankruptcy (first) | Consumer proposal | |
|---|---|---|
| How long it lasts | Usually 9 or 21 months to automatic discharge, unless opposed (OSB) | Up to 5 years (OSB) |
| On your credit report (Alberta) | Usually 6 years after discharge (FCAC) | 3 years after it's paid off, or 6 years after signing, whichever is sooner (FCAC) |
| Credit while it's active | Must disclose undischarged status to lenders. Secured or low-limit cards may be possible. | Cards with a balance are cancelled. Secured or low-limit cards may be possible. |
Sources: Office of the Superintendent of Bankruptcy and the Financial Consumer Agency of Canada. If you're considering bankruptcy or a proposal, a Licensed Insolvency Trustee is the professional to talk to. We're a vehicle publisher, not a debt advisor.
Guides in this section
Illustrative imageAfter a bankruptcy or consumer proposal
Buying a vehicle after bankruptcy in Alberta: what to know before you shop
Discharged or not, how long a bankruptcy or consumer proposal stays on your credit report, what lenders look at, and the questions to ask before you sign anything.