Previous bankruptcy in Canada

Question: With the new changes to the bankruptcy laws in Canada when they ask for previous bankruptcy how far back do they want to know?

Answer: The Office of the Superintendent of Bankruptcy’s insolvency search system, lists all bankruptcy filings since 1973.  So, if you are asked on a credit application form “have you ever declared bankruptcy?”, it is possible for anyone to do a search back to 1973.

However, the credit bureaus in Canada, like Equifax, only report bankruptcy information for six years after the date of discharge (except in the case of a second bankruptcy, where it will remain on your credit report for 14 years).  In most cases lenders only care about your recent history, not what happened 20 years ago.

Before you apply for new credit it is wise to review a copy of your credit report to see what’s on it, so you will know what information lenders will have when they make their lending decision.