How Long Does a Consumer Proposal Take in Canada?

A consumer proposal timeline has two separate clocks: the formal filing and creditor-review process, then the payment term in the accepted proposal. The practical duration depends on the completeness of your file, creditor response, any amendment or review, and the terms you sign.

The OSB’s consumer-proposal guidance says creditors have 45 days after filing to accept or reject the proposal or request a meeting. It also says the term of a consumer proposal cannot exceed five years for an eligible individual. Those are useful legal guardrails, not a promise that every case takes the same number of days or payments.

The Timeline at a Glance

1. Prepare the file

The LIT needs accurate information about debts, income, expenses, assets, secured obligations, household circumstances, and prior proceedings. Missing or contradictory information can delay filing or change the proposed terms.

2. File the proposal

The LIT files the formal proposal and sends the required information to creditors. Ask which debts are included, which payments continue outside the proposal, and what collection activity is affected under the stay of proceedings.

3. Creditor review

Creditors receive the proposal and have 45 days to accept, reject, or request a meeting. A meeting can be requested by creditors meeting the statutory threshold described by the OSB. Creditors vote by the value of proven claims when a vote is held.

Read the consumer proposal acceptance guide for the decision mechanics. Do not convert a 45-day review period into a guaranteed “60-day approval” claim: amendments, meetings, review, and file-specific events can change the practical schedule.

4. Payment term

If the proposal becomes binding, make the payments and complete the obligations in the signed terms. The term cannot exceed five years for an eligible individual, but the amount and number of payments depend on the accepted proposal. Use the calculator to test arithmetic only.

5. Completion

Keep payment records and request the completion documentation from the LIT. Credit reporting is a separate question: see consumer proposal credit-score impact and confirm the current treatment with both bureaus.

Events That Can Change the Schedule

• a creditor requests a meeting;
• creditors propose or accept amended terms;
• the LIT needs more evidence or corrected information;
• a court or other interested party requests review;
• a payment is missed or the proposal is at risk of annulment; or
• your income, expenses, assets, or household circumstances change.

If you miss a payment, contact the LIT immediately. Do not assume that a blog’s “three payments” rule, grace period, or automatic cure applies to your file. Read consumer proposal annulment and ask for the exact current consequence.

Early Completion and Credit Recovery

Extra payments may change the completion date, but they do not create a universal credit-recovery or mortgage schedule. Lenders set their own policies and can consider income, affordability, payment history, proposal status, and the current credit report. Ask the LIT and lender separately instead of treating early payment as a guaranteed shortcut.

Use the Timeline to Make the Next Decision

If you are comparing options, review the fees and written-breakdown checklist, compare consumer proposal and bankruptcy, and then find a Licensed Insolvency Trustee for a file-specific schedule.

If a lawsuit, garnishment, or urgent collection notice is already active, start with notice triage and bring the document to the consultation.

Bottom Line

The reliable timeline is: prepare accurately, file through a LIT, allow the creditor-review process, follow the accepted payment terms, and confirm completion. The OSB provides the statutory framework; your signed proposal and file-specific events determine the actual calendar.

This article is general information, not legal or financial advice.