Bankruptcy: Rules of the Game
Thursday, November 25, 2010 at 9:02AM 
Like all issues related to good or bad credit, credit activity remains on your credit bureau for 6 years with Equifax, and 7 years with Trans Union Credit Bureau.
I am frequently asked the question, “Can I get a mortgage having gone bankrupt?” The answer is yes, providing the following criteria are met.
Insurers like Canada Housing and Mortgage Corporation (CMHC) and G.E. require that you can qualify for a mortgage after completing a minimum of 2 years time following your discharge date. Check your Certificate of Discharge papers for your date. Also, you must have re-established credit. This is not a car loan that you had before/during your bankruptcy. “Re-established” means new credit.
Below are a couple of recommendations:
1. The longer you wait after the 2 year period, the better your chances of qualifying.
2. Having re-established credit with a Capital One secured credit card (or Home Trust Visa, etc.) with a $500.00 limit won’t cut it. If you are able to get a secured credit card, try every 6 months to increase the limit, up to to $1000.00 or even $2000.00. Just don’t use it too much and be sure to never have a late payment.
2. If you ever have a late payment while your bankruptcy information remains on the credit bureau, you are out of luck.
Next time I will discuss a few bankruptcy “horror stories” so you can avoid them in the future. For more information on bankruptcy in Ontario, please click here.