People often express concern over the affect filing bankruptcy will have on their credit score, as well as their ability to re-establish credit after filing bankruptcy. The answers to these questions can be somewhat complex, depending on the circumstances.
Thousands of Canadians file bankruptcy every year, and most of those Canadians have similar concerns. One common concern is that they will end up with terrible credit after the bankruptcy process is complete.
If you’ve found yourself with a bad credit score, you may be concerned with how you got to this point and how to recover. There are several factors that could have resulted in your bad credit score. Let’s take a look at those factors.
On a basic level, a credit score is like a report card. Each purchase you make on credit affects a 3-digit score set between 300 and 900. The higher your score, the better your financial reputation.