Can bankruptcy be removed from credit score?

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In Canada, a bankruptcy filing is like that old souvenir—hard to shake off. For first-timers, it marks a six-year stay on your credit report post-discharge. Repeat filers face a lingering presence for 14 years. Until discharge, bankruptcy details may stay indefinitely, but once removed, focus on rebuilding credit!

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Question

Can bankruptcy be removed from credit score? I’ve heard different things about removing bankruptcy from credit scores. Is it possible to clear it off, and if so, how can I go about doing it?

From: Anonymous Question, Winnipeg, Manitoba (MB)

Debt Insiders Answer

In Canada, once you’ve filed for bankruptcy, it sticks around on your credit report like that old concert T-shirt you just can’t seem to toss. For the first-timers, consider it a six-year guest—from the date of discharge. If you’re experienced in the bankruptcy department and have filed more than once, each one will linger around for about 14 years, kind of like a never-ending cycle of rewatching your favorite series. Now, if you’re still undischarged, that’s a different story. The info might just stay there indefinitely. Unfortunately, there’s no way to shoo it away before it’s done, but hey, once the clock runs out, poof, it’s gone automatically! So, in the meantime, roll up your sleeves and focus on building back your credit castle after discharge. It’ll help shine up that credit score over time, bit by bit.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, a bankruptcy will remain on your credit report for a specified period. According to the Bankruptcy and Insolvency Act, generally, a first bankruptcy will stay on your credit report for seven years after your discharge, while a second bankruptcy can remain for fourteen years. There is no provision under the Act or its regulations that allows for the removal of a bankruptcy from your credit score before this time period elapses. Therefore, once filed, you cannot clear it off your credit report prematurely through any means. You can, however, work on rebuilding your credit during this time.

From: This answer is provided by scanning the Bankruptcy & Insolvency Act and related directives from the Office of the Superintendent of Bankruptcy (OSB).

Related Questions

Here are the top 5 most frequently asked questions related to the impact of bankruptcy on credit scores in Canada, along with brief answers:

1. How long does a bankruptcy stay on my credit report?

A bankruptcy typically remains on your credit report for 6 or 7 years, depending on the province[1][3][5].

2. Can I remove a bankruptcy from my credit report early?

No, a bankruptcy cannot be removed from your credit report early; it must remain for the specified period[1][3][5].

3. How much does a bankruptcy affect my credit score?

A bankruptcy can lower your credit score by around 200 points or more[1][3][5].

4. Can I get credit during or after a bankruptcy?

Getting credit during or after a bankruptcy is challenging, but it is possible with certain conditions and potential higher interest rates[5].

5. How can I rebuild my credit score after a bankruptcy?

You can start rebuilding your credit score after a bankruptcy by adopting positive financial habits, making timely payments, and possibly using a secured credit card or other credit-building tools[1][3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

References

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