Do I have to pay money up front before getting a bankruptcy loan?

No, a legitimate lender shouldn't ask you to pay any funds up front. In many provinces, it's actually illegal for a lender to request any money up front. If a lender charges an origination or processing fee for a loan, they'll typically deduct it from the loan amount. If a lender is asking for a prepaid card loaded with funds, you should look elsewhere for a loan — it's likely a scam. You should also be aware that loan insurance is never required.

How do I find a lender who offers loans for discharged bankrupts in Canada?

In order to find out which lenders accept bankrupt applicants, you can either browse our curated lists of bankruptcy lenders here or review the eligibility criteria of different lenders and call their customer service lines before applying.

Do I have to disclose to lenders that I'm in bankruptcy or have filed for bankruptcy previously?

If the lender's application includes a question regarding bankruptcy, it can be considered fraud if you don't answer truthfully. Besides, many lenders will check your credit report when deciding whether to approve your application, where they can see any bankruptcy in the past six to seven years.

Are there bankruptcy loans that don't require credit checks?

Yes. Some lenders of payday loans, credit builder loans and cash advances don't do credit checks.

Does declaring bankruptcy clear debt in Canada?

Yes, in most cases, declaring bankruptcy in Canada will clear your debts. However, there's a selection of "non-dischargeable" debts that are exempt from bankruptcy, including alimony and child support back payments as well as student loans (within seven years of when you stopped being a student).

Can you get a line of credit with a bankruptcy?

It'll be very difficult to get a line of credit if you have a history of bankruptcy. This is because lines of credit have flexible repayments and require financial discipline in paying off the balance. Lenders may find you too high of a risk for a line of credit. If you need flexible repayments, consider KOHO Cover or Nyble. Nyble in particular can rebuild your history as you make on-time payments.