How long does consumer proposal take?

_{consumer proposal length, How long a consumer proposal takes, British Columbia}

In Canada, a consumer proposal usually takes 45 to 60 days to approve, with creditors reviewing and possibly extending the process by 15 days if a meeting is needed. The repayment period typically spans up to five years, but some manage to finish in 42 months or even 12 to 18 months with bigger payments. Reach out via phone, text, or live chat if you have any questions. Not all trustees can be trusted.

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_{Consumer proposal process in Canada: 45-60 days to approval.}

Consumer Proposal Length Question

How long does consumer proposal take? I’m trying to understand how much time I’ll need to commit if I decide to go forward with a consumer proposal.

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

Consumer Proposal Length Answer

Navigating the consumer proposal route in Canada usually takes between 45 to 60 days from filing to getting the thumbs up. During these 45 days, creditors mull over the proposal. If they happen to call for a creditors’ meeting, things might stretch by an extra 15 days. Once everyone is on board, the repayment journey generally spans up to five years. Depending on how payments roll in, some folks wrap it up in about 42 months. Yet, with a bit of extra effort through larger or lump-sum payments, some savvy individuals zoom through in as few as 12 to 18 months.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

A consumer proposal typically takes about 3 to 5 years to complete. This timeframe can vary depending on the terms of the proposal and the debtor’s financial circumstances. According to the Bankruptcy and Insolvency Act (RSC 1985, c. B-3), the proposal period is generally fixed for a minimum of three years, but it can be extended to a maximum of five years based on the agreement with creditors (Sections 66.13 and 66.14). The actual implementation of the proposal, including the time required for payments, is dictated by the specific terms agreed upon with your licensed insolvency trustee and creditors.

From: OSB Helper

Related Questions to How Long A Consumer Proposal Takes

Here are the top 5 most frequently asked questions related to the duration and process of a consumer proposal in Canada:

1. How long does a consumer proposal last?

A consumer proposal can last up to five years or 60 months, but it can be completed earlier with higher or lump sum payments[1][4][5].

2. How long do creditors have to accept or reject a consumer proposal?

Creditors have 45 days to accept or reject a consumer proposal, with the possibility of an additional 15 days for court review[1][4][5].

3. What happens after the 45-day review period for a consumer proposal?

After the 45-day review period, if the proposal is accepted, there is an additional 15-day period for potential court approval, after which the proposal is legally binding[4][5].

4. Are there any penalties for completing a consumer proposal early?

There are no penalties for completing a consumer proposal early[4].

5. How does a consumer proposal affect my credit score and for how long?

A consumer proposal affects your credit score for three years after completion or six years from the filing date, whichever comes first, and is coded as an R7 on credit reports[4][5].

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

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