The length of time it takes to complete a consumer proposal depends on a number of factors, particularly the amount of unsecured debt you have as well as the amount and frequency in which you are able to make a payment. However, the terms of a consumer proposal cannot extend beyond five years.
Most consumer proposals involve a monthly payment over anywhere from 1 year (12 months) to 5 years (60 months), however, there is nothing in the legislation that says a proposal must be comprised ofmonthly payment terms. For example, a self-employed farmer may find it more suitable to propose payment terms that are semi-annual or annual based on their cash flow. Conversely, an individual getting paid every two weeks would likely find a monthly payment more suitable. In summary, consumer proposals can offer a great deal of flexibility in respect of payment terms. Keep in mind that a proposal must be accepted a majority of your creditors based on the amount they are owed. In addition, if you were to fall behind by more than three payments, your proposal wouldbe annulled.
There is no penalty for completing the terms of your proposal early.
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