How long does a consumer proposal take?

_{consumer proposal duration, how long consumer proposals take, Nova Scotia}

Consumer proposals, averaging 47 months and often wrapping up by 42 months, can be completed sooner with larger payments. Initiated with a Licensed Insolvency Trustee, they freeze creditor actions, allowing breathing room. Creditors decide within 45 days, and early repayment carries no penalties. Reach out via phone, text or live chat if you have any questions.

Show Table of Contents

_{Consumer proposal duration: settle debts in under 5 years.}

Consumer Proposal Duration Question

How long does a consumer proposal take? I’d like to understand how long a consumer proposal takes to complete. It’s important for planning my finances.

From: Anonymous Question
Location: Halifax, Nova Scotia (NS)
Category: consumer proposal

Consumer Proposal Duration Answer

A consumer proposal is designed to be completed within five years, but the process can be wrapped up sooner if you’re able to make larger or more frequent payments—or even a big one-time payment. On average, these proposals take about 47 months to see through, with most reaching completion around the 42-month mark. It all kicks off with a sit-down with a Licensed Insolvency Trustee, who guides you through the stages, including getting the thumbs up from creditors. During this time, creditors are put on hold due to an automatic stay, giving you a much-needed breather to sort things out.

Once you file, creditors have 45 days to mull over the proposal, and while this period can be stretched, a thumbs up from most creditors locks the plan in place legally. Of course, things can slow down if meetings or court reviews pop up. But here’s the good news: if you can pay it off early, there are no penalties, so you can potentially shake off those debts sooner if your financial situation improves.

Beware, not all Trustees can be trusted, so be careful. Reach out to us if you have a question.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

A consumer proposal in Canada typically takes a minimum of 3 to 5 years to complete, depending on the terms negotiated and the debtor’s ability to make payments. According to the Bankruptcy and Insolvency Act, section 66.1, the consumer proposal must be completed within the agreed-upon duration as outlined in the proposal itself. If the payments are made as agreed, then it will conclude by the end of that period.

From: OSB Helper

Related Questions to How Long Consumer Proposals Take

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

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, more frequent, or lump sum payments[1][3][5].

2. What happens after the initial 45-day period of a consumer proposal?

After the 45-day review period, if the consumer proposal is accepted by the creditors, an additional 15 days are allowed for court approval[1][3].

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

No, there are no penalties for completing a consumer proposal early[1].

4. How can I confirm if my consumer proposal has been approved?

You can confirm if your consumer proposal has been approved after the 15-day period following creditor acceptance, during which time no court review requests are made[1].

5. What if creditors reject my consumer proposal?

If creditors reject your consumer proposal, you can amend the terms and resubmit it for approval, or you may need to consider other debt relief options such as bankruptcy[1][3][4].

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

References

_{Table of article references}