After Bankruptcy in Canada
To repair your credit after bankruptcy in Canada, you should getting a secured credit card to repair your credit after bankruptcy.
Full details on how to get a secured credit card can be found on our secured credit card page, including an application form.
{ 4 comments… read them below or add one }
I have recently had my consumer proposal discharged. I know that there are certain things that I cannot do, but I am not exactly sure what they are. For example, business ownership or being a director of a business? What about being a director or a trustee in a not for profit agency? Where could I go to find information on what one can and cannot do?
Once your consumer proposal is completed, you are free to do whatever you want. You can own a business, or be a director of a for profit or not for profit business, or a trustee of a not for profit agency.
You are only limited by the fact that your credit report will show that you filed a consumer proposal, and that note will appear for three years after your proposal is completed, so it may be more difficult to borrow money during that period. That, however, should not impact on your ability to be a director of a business.
I was wondering if you could give me some detailed information on how the payment adjustment is made for the last 14 months during a bankruptcy procedure. How is the calculation made? Is the starting date based on the day you start your bankruptcy, or is it the beginning of that month – for instance the filing was officially July 20th 2010, so would the calculation start with the two paycheques in July, or with only one (it happened to be July 21).
Is the calculation done with average monthly income or with average payday amounts. I am confused, as there seems to have been 16 paydays in the first seven months – and there are only 30 in the next fourteen – unless I made an error. The amount I have been given to pay for the remainder of the time seems higher than it should be. I would really appreciate your expertise and advice. Thankyou very much.
The Bankruptcy Act does not specify whether the surplus income calculation is done on a calendar month, or on a month that starts and end with your date of bankruptcy (say the 20th to the 20th of each month). Regardless, it shouldn’t matter, because the math is done one of two ways:
First, the trustee will average your income, generally for the first six or seven months (if it’s a first bankruptcy), and then you will be required to pay that amount for the 21 months of the bankruptcy. So, if after seven months your average income was $800 over the limit, you will be required to make surplus income payments of $400 per month for 21 months.
Second, you can continue to submit proof of your income for each of the 21 months, and you can pay the actual amount each month; some months may be higher than others.
If you are confused about any of this, we strongly recommend that you book a meeting with your trustee and sit down with them and have them walk you through the exact math in your situation.