How long is a consumer proposal?

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In Canada, a consumer proposal typically wraps up within 60 months, but many folks finish in about 42 months on average—or even as swiftly as 12 to 18 months with smart payments. The duration depends on your payment strategy, like lump sums or increased monthly payments, and creditor response, which can extend or shorten the process. Reach out via phone, text, or live chat if you have any questions. Remember, not all trustees can be trusted.

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Consumer Proposal Length Question

How long is a consumer proposal? How long is the term of a consumer proposal, and can it be extended or shortened?

From: Anonymous Question
Location: Guelph, Ontario (ON)
Category: consumer proposal

Consumer Proposal Length Answer

In Canada, a consumer proposal usually wraps up in no more than 60 months, or 5 years. However, most folks tick that box in about 42 months on average. Some even cross the finish line in just 12 to 18 months, thanks to smart payment strategies and improved financial standing. The duration largely depends on how you plan your payments—whether you go for lump sums or boost your monthly offerings. Plus, creditors play a role too, as they have a 45-day window to accept or reject the proposal. If there are any back-and-forth adjustments needed, the timeline might stretch a bit.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

The term of a consumer proposal in Canada is typically up to five years. This duration can be shorter if the total amount of debt is less than the threshold specified under the Bankruptcy and Insolvency Act. Extensions beyond five years are generally not allowed, and any modifications to the proposal must be approved by the creditors and the court in accordance with the provisions of the Bankruptcy and Insolvency Act and its associated regulations. For specifics, see the Bankruptcy and Insolvency Act, RSC 1985, c B-3, section 66.

From: OSB Helper

Related Questions to How Long A Consumer Proposal Is

Here are the top 5 most frequently asked questions related to the duration and process of a consumer proposal, based on the provided sources and general online trends:

1. How long does a consumer proposal take to complete?

A consumer proposal must be completed within 60 months, but it can be completed in a shorter period with higher or lump sum payments[1][3][5].

2. What is the average length of a consumer proposal?

The average consumer proposal length is approximately 42-47 months, though it can vary based on individual financial situations[1][3].

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

Creditors have 45 days to accept or reject a consumer proposal, with a potential 15-day extension if a meeting of creditors is called[1][3][5].

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

No, there are no penalties for completing a consumer proposal early[3].

5. How long 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][3].

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