How long does a consumer proposal or bankruptcy stay on your credit report in Canada?

According to the Financial Consumer Agency of Canada (FCAC), Equifax and TransUnion remove a consumer proposal from your credit report 3 years after you pay off all the debts in the proposal, or 6 years after you sign it, whichever comes first. A first bankruptcy usually stays 6 years after discharge, but TransUnion keeps it 7 years after discharge in Newfoundland and Labrador, Ontario, Prince Edward Island and Quebec. A second or later bankruptcy stays 14 years. A debt management plan is removed 2 years after you finish paying. Late payments on cards and loans can stay up to 6 years. These are the bureaus' policies as described by the FCAC, not federal law, and they can change, so check your own reports.

Part of debt relief mistakes and official sources. General information, not financial advice.

Retention at a glance

Source: FCAC, "How long information stays on your credit report". The FCAC also notes that TransUnion keeps general information longer in some provinces.

Worked timelines

A consumer proposal completed in 4 years

Signed: March 2026. Completed: March 2030.

• 3 years after completion: March 2033.
• 6 years after signing: March 2032.
• Removed about March 2032 (the earlier date).

A consumer proposal completed early

Signed: March 2026. Paid off with a lump sum: September 2027.

• 3 years after completion: September 2030.
• 6 years after signing: March 2032.
• Removed about September 2030. Paying a proposal off early can shorten its time on your report.

A first bankruptcy in Ontario, no surplus income

Filed: January 2026. Discharged: October 2026 (9 months).

• Equifax: 6 years after discharge, about October 2032.
• TransUnion (Ontario): 7 years after discharge, about October 2033.

A first bankruptcy in Alberta with surplus income

Filed: January 2026. Discharged: October 2027 (21 months).

• Both bureaus: about October 2033.

Debts included in the proposal or bankruptcy

The individual accounts are a separate item from the proposal or bankruptcy record. After completion or discharge, each included account should show a zero balance with a note that it was included in a proposal or bankruptcy. A common problem is an account still showing a balance or as "in collection". Fix it by:

1. getting your free reports from Equifax Canada and TransUnion Canada;
2. disputing the error with the bureau online or by mail, attaching your certificate of full performance or discharge;
3. contacting the creditor if the bureau does not fix it.

Rebuilding credit

• A secured credit card with a deposit, used lightly and paid in full each month, is a common first step.
• Keep paying any loans that were not included, such as a car loan or mortgage; on-time payments build positive history.
• Small instalment credit from a mainstream lender, once offered on reasonable terms, can help, but avoid high-cost lenders that market "credit rebuilding" loans at rates near the 35% APR criminal limit.
• Check reports yearly and before applying for a mortgage.
• Budget for savings so you do not need credit for emergencies.

Lenders make their own decisions. Some will lend shortly after discharge or completion at higher rates; mortgage insurers and prime lenders often look for a period of re-established credit after discharge.

Proposal vs bankruptcy: which is better for credit?

For a first bankruptcy discharged after 9 months, the record would typically run about 6 years and 9 months from filing (7 years and 9 months with TransUnion in NL, ON, PEI or QC). A proposal is usually removed within 6 years of signing. See the worked examples.

Common misconceptions

• "My score resets to zero." There is no reset; the record and included accounts lower your score until they are removed and new positive history builds.
• "Credit counselling hurts my credit." Getting advice does not. A DMP is noted; see DMP vs consumer proposal.
• "Paying someone can remove a bankruptcy early." Nobody can remove accurate information before its retention period ends. Firms that promise this are a red flag.

Related: a proposal that fails changes this timeline; see default and annulment. For the Quebec retention period and other Quebec rules, see Quebec specifics.

Frequently asked questions

Are credit reports free?

Yes. Equifax Canada and TransUnion Canada provide free access to your report, and checking your own report does not affect your score.

Does a consumer proposal show as an "R7" rating?

Accounts included in a proposal are often coded R7 and bankruptcies R9 in the bureaus' rating systems. These codes are a credit-bureau and lender reporting practice, not a rule in the BIA, so check how your own accounts appear on your Equifax and TransUnion reports. What matters most is the removal date.

Is the OSB record the same as the credit report?

No. The OSB keeps a public record of insolvencies, separate from the credit bureaus' files.

Can a lender see a proposal after it is removed?

Lenders can ask on applications whether you have ever been bankrupt or made a proposal, and the OSB's records are searchable. Answer truthfully.

Sources

• Financial Consumer Agency of Canada — "How long information stays on your credit report"
• Equifax Canada — free credit report and disputes
• TransUnion Canada — free credit report and disputes
• Office of the Superintendent of Bankruptcy — insolvency records search