How long does a consumer proposal last?

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In Canada, a consumer proposal might take up to five years, but it often lasts around 47 months. The timeframe depends on factors like how much unsecured debt you have and your ability to repay. While some can complete it in 12 to 18 months, others find it takes longer. If you have questions, reach out via phone, text, or live chat! Remember, not all trustees can be trusted.

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Consumer Proposal Question

How long does a consumer proposal last? I’m curious how long a consumer proposal usually lasts. It’s important to know for financial planning.

From: Anonymous Question
Location: Surrey, British Columbia (BC)
Category: consumer proposal

Consumer Proposal Answer

In Canada, a consumer proposal can stretch out for as long as five years. However, the length truly depends on your unique financial situation. Some folks wrap things up in as little as 12 to 18 months, but on average, you’re looking at around 47 months. What really influences this timeline? It’s factors like your unsecured debt amount and how much you can comfortably pay that really shape the journey.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

A consumer proposal in Canada typically lasts for a period of three to five years. This is outlined in the Bankruptcy and Insolvency Act (RSC 1985, c 11, s 50.6), which specifies that the proposal must provide for payments to creditors over a maximum of five years. The specific duration of individual proposals may vary based on the terms agreed upon, so it’s important to understand the length of time consumer proposal for your specific situation.

From: OSB Helper

Related Questions to How Long Consumer Proposals Last

Here are the top 5 most frequently asked questions related to the duration and process of a consumer proposal, along with brief answers:

1. How long can a consumer proposal last?

A consumer proposal can last no longer than five years or 60 months, but it can be completed in as little as 12 to 18 months[1][3][5].

2. What are the key milestones in the consumer proposal process?

The key milestones include an initial consultation and filing, an automatic stay of proceedings, a creditor acceptance period, and the completion of payments over the agreed term[1].

3. How long does it take for creditors to accept or reject a consumer proposal?

Creditors have 45 days to accept or reject the proposal, with a possible extension of up to 15 days if a meeting of creditors is called[1].

4. How does a consumer proposal affect my credit report?

A consumer proposal remains on your credit report for 3 years after completion or 6 years from the date of filing, whichever comes first[1].

5. Can I make extra payments to complete a consumer proposal earlier?

Yes, you can make extra payments to complete the consumer proposal earlier than the original term, as many people do once their financial situation improves[1][3].

If you have a question about debt see our debt questions or ask your own debt related question.

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