Consumer proposal: the pitfalls that can still catch you even after discharge

When debts become too heavy to manage, a consumer proposal can offer a favorable solution. This legally regulated process allows a financially troubled consumer to make an offer to their creditors through a bankruptcy trustee, in order to settle debts for a reduced amount or under more manageable terms.

 

But how is it that even after being discharged from a consumer proposal, our credit report can still negatively impact us?  

 

Credit bureaus Equifax and TransUnion collect and analyze consumers' financial information, often provided by creditors, to create a profile of their credit behavior. Several elements make up this file, such as remarks, credit limits, balances, and a rating system (R1 to R9, for example). 

 

Once you have received your certificate of full performance following a consumer proposal, it is essential to ensure that your credit report accurately reflects your current financial situation. All items previously listed in your file, such as late payment remarks, outstanding balances, and R9 entries, must be corrected. This will help restore your financial image and improve your credit score. 

 

Remember that these corrections are essential to help you rebuild stable financial health and obtain better terms for future credit applications.

 

Be sure to regularly check your credit report and report any inaccurate information listed on it.