Bankruptcy information stays in bank system for 10 years

|

Bankruptcies can be on record for 10 years, not 6

Dear Ross: How come TD Bank has notes in their system about my personal bankruptcy from 2003? My credit bureau is absolutely clean; score 765; no blemishes, yet I can only get a secured visa from my own bank after all these years! Thanks!

-Confused in North York

Dear Confused: Everyone tells you a first time bankruptcy is wiped from the credit system six years from the date of discharge, but they are only partially correct. In Ontario, it does disappear from your credit report (Equifax or Trans Union Canada). In some provinces, it takes seven years.

Major banks who are your creditors are notified by the bankruptcy trustee when you declare bankruptcy. The bank then attaches a note to your customer profile in their computer systems.

TD Bank’s internal policy is to keep such notes for ten years from the date it was input – which means in your case that note stays there till April 2013.

TD told me this policy is adhered to at all Canadian financial institutions, but I don’t know that for a fact. I will try to find out and put the answer in a later post.

Related Articles

​Ross Taylor
One of Toronto/GTA's Most Trusted and Knowledgable Mortgage Agents

Ross Taylor is recognized by his peers as one of Canada's pre-eminent difficult mortgage specialists. His ASKROSS blog and column ​ in Canadian Mortgage Trends are focused on the intersection between mortgage financing and personal credit.

With unique dual certification as a licensed credit counselor and mortgage agent, Ross's insights are valued by mortgage professionals and homebuyers alike.

If you have questions about anything financial or mortgage-related, please contact [email protected]. Ross answers everyone personally.

​For more information, visit About Ross Taylor.