How long does a consumer proposal stay on your credit report? The 3-year and 6-year rules
A consumer proposal comes off Equifax and TransUnion reports 3 years after you finish paying or 6 years after you sign, whichever is first. Here's how it works.
A consumer proposal stays on your credit report for 3 years after you’ve paid off the debts included in it, or 6 years after you sign it, whichever comes first. That is how the Financial Consumer Agency of Canada (FCAC) describes the rule for both Equifax and TransUnion, Canada’s two main credit bureaus.1 If you are weighing a proposal against other options, this is one of the questions people ask most, so here is how the timeline works in practice.
How long does a consumer proposal stay on your credit report?
A consumer proposal is a legally binding agreement, set up by a Licensed Insolvency Trustee, to pay part of what you owe or to stretch out the time to pay it. The term cannot be longer than five years.2
The credit bureaus count from two possible starting points, and use whichever ends sooner:
- 3 years after the debts in the proposal are paid off, or
- the sixth anniversary of signing it.1
Here is what that means for a few illustrative cases. These are examples worked out from the FCAC rule, not figures from a bureau:
| Proposal length, paid on schedule | 3 years after payoff | 6 years after signing | Removed at |
|---|---|---|---|
| 5 years | year 8 | year 6 | about year 6 |
| 3 years | year 6 | year 6 | about year 6 |
| 2 years | year 5 | year 6 | about year 5 |
In other words, a long proposal doesn’t keep the entry on your report for longer than 6 years from the day you signed it, and a shorter one, or one you finish early, can mean it comes off sooner. The OSB adds that how long it stays can vary by province, so check with the bureaus about your own situation.2
How does that compare with bankruptcy and other options?
The FCAC lists the following periods for other situations:1
| Situation | How long it stays on your report |
|---|---|
| Consumer proposal | 3 years after payoff or 6 years after signing, whichever is first |
| Bankruptcy | Usually 6 years after discharge; 7 years with TransUnion in Newfoundland and Labrador, Ontario, Prince Edward Island and Quebec |
| A second bankruptcy | 14 years |
| Debt management plan | 2 years after your final payment |
| Missed payments on cards and loans | Up to 6 years |
Source: Financial Consumer Agency of Canada.
For how the two options differ beyond your credit report, including cost, assets and how long each takes, see our comparison of consumer proposals and bankruptcy.
A debt management plan is set up by a credit counsellor with your creditors, not through a court-supervised legal process like a proposal. It leaves a shorter mark on your report, but because it is arranged outside the legal process, it works differently from a proposal. You can read more about how a debt management plan works.
Will a consumer proposal wreck my credit score?
It will have an effect. The OSB says that a person who files a proposal or a bankruptcy is generally assigned the lowest possible credit score.2 But a score is only one piece of the picture. Falling behind on credit cards, loans and lines of credit also stays on your report for up to 6 years, so for someone already missing payments the report may already show damage.1
After you finish a proposal, the OSB advises asking your Licensed Insolvency Trustee for the certificate of full performance and sending a copy to the credit bureaus, so your record is updated.2 The OSB is also clear that how fast you can rebuild credit depends on convincing lenders, and that nothing is guaranteed.2
What this means for you
- Think about the whole timeline. A proposal’s mark on your credit report is limited, and so are the payments, but you do need steady enough income to complete it. Missing three monthly payments can lead to the proposal being annulled.2
- Compare it with the alternative of not acting. Late and unpaid debts also stay on your report, for up to 6 years.
- Order your reports. You can check what Equifax and TransUnion currently show about you and correct any errors.
- Speak with a Licensed Insolvency Trustee. Many offer a free first consultation and can explain what each option would mean for your credit, your assets and your payments. For context on who files, see the OSB’s debtor profile, and for assets, see what happens to your car. For the larger picture, Jay Harris looks at how many Canadians file each year.
This is general information, not advice for your situation.
Footnotes
-
Financial Consumer Agency of Canada, “How long information stays on your credit report” (modified July 1, 2026). https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/information-credit-report.html ↩ ↩2 ↩3 ↩4
-
Office of the Superintendent of Bankruptcy, “You Owe Money — Consumer proposals.” https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/you-owe-money/you-owe-money-consumer-proposals ↩ ↩2 ↩3 ↩4 ↩5 ↩6
Sources
This article is general information about Canadian debt and insolvency, not legal or financial advice for your situation. Figures are accurate as of the publication date.
