Credit records after a settlement, proposal or bankruptcy
By NovaCash · Updated September 22, 2026
Settlements, consumer proposals and bankruptcies have different credit-report timelines. Check FCAC guidance and the information in your own file.
When a debt is settled, the relief is real. The score does not "come back" the next morning. The FCAC separates several situations: a debt-management plan, a consumer proposal, a bankruptcy, a judgment, late payments. Retention periods differ, and TransUnion does not always use the same years as Equifax, especially in Quebec.
An informal settlement (you pay less than the balance, outside insolvency) is not a consumer proposal and not a bankruptcy. It can still leave a negative note. Do not mix those three paths.
How long information stays
According to FCAC (updated 2026-07-01):
- Late or unpaid accounts: up to 6 years.
- Lender inquiries: 3 years at Equifax, 6 years at TransUnion.
- Debt-management plan: removed 2 years after you finish paying.
- Consumer proposal: 3 years after the included debts are paid, or 6 years after you sign, whichever comes first.
- Bankruptcy: generally 6 years after discharge; 7 years after discharge at TransUnion in Newfoundland and Labrador, Ontario, Prince Edward Island and Quebec. A further bankruptcy: 14 years.
- Judgment: usually 6 years; 7 years at TransUnion in Quebec (and some other provinces).
Closed positive accounts may stay up to 10 years at Equifax and up to 20 years at TransUnion. Check your own files instead of memorising one "Canadian" number.
What actually helps afterwards
Pay remaining open accounts on time. Keep card balances away from the limit. Avoid a burst of new applications. Order Equifax and TransUnion files through the FCAC guide and fix errors. A licensed insolvency trustee (Office of the Superintendent of Bankruptcy) is the source for a proposal or bankruptcy, not a blog post.
Some loans and cards report payments to the bureaus. Others do not. A NovaCash loan is not presented as a score lever. An active bankruptcy remains an exclusion. See how the bureaus work and when a loan can, or cannot, rebuild a file.
Frequently asked questions
Does a settlement wipe the debt off the report?
Not automatically. The note and the period depend on the agreement type and the bureau.
Does NovaCash accept an application during bankruptcy?
No. An active bankruptcy is excluded.
Will my score return to its old level?
No one can guarantee that. Scoring formulas are not public. Time and on-time payments help; they do not promise a number.