How Long Does a Consumer Proposal Stay on Credit Report in Ontario?

Table of Contents

Does a Consumer Proposal Affect My Credit?

The short answer is yes; a consumer proposal will affect your credit as it reduces your credit score and stays on your credit report for a period.

After completing the proposal, however, nothing is stopping you from raising your credit score.

Many are concerned about the impact a consumer proposal can have on your credit. The reality is that this debt relief solution can set you up for better credit and financial decisions in the future. One reason for this is that credit counselling services are mandatory with a credit consumer proposal.

Credit counselling sessions provide a debtor with the tools, resources, and debt management strategies they will need to repay the proposal and form better financial habits for the future. 

At David Sklar & Associates, we want to see you succeed and walk you through the entire process. We will explain what filing for a consumer proposal will mean for your credit and how it can help your financial future. 

How Long Does a Consumer Proposal Stay on Your Credit Report?

A consumer proposal can remain on your credit report a maximum of 6 years from the date you file based on the new guidelines from TransUnion and Equifax. A lot less time than bankruptcy. Bankruptcies, on the other hand, remain on your account for longer, and increases every time you file one.

Keep in mind that if you pay your consumer proposal faster, the length of time it appears on your credit report is shortened. This is another advantage that you don’t get when you file for bankruptcy. At David Sklar & Associates, we work with you to weigh both options and identify the best solution for you.

A consumer proposal that is completed in five years, will be removed from your credit report one year later (six years from the date you filed).

A consumer proposal that is completed in two years, will remain on your credit report an additional 3 years from the date you completed payment (for a total of five years).

A consumer proposal paid immediately as a lump sum, will be removed three years after the completion of the proposal.

How Long Does Bankruptcy Stay on Credit Report in Canada?

How long a bankruptcy will stay on your credit report in Canada depends on the number of bankruptcies you’ve already filed. If this is your first bankruptcy, it will remain on your credit for six years after discharge.

If this is your second time filing for bankruptcy, it will stay on your credit report for 14 years. If you file for bankruptcy three times or more, it remains on your credit for life. The Canadian Government outlines these timelines.

Understanding Your Credit Rating History

The two agencies that report and keep a record of your credit history are TransUnion and Equifax. These agencies updated their retention policies for consumer proposals in 2019 to reflect the following:

TransUnion: TransUnion will remove a consumer proposal and any related accounts from your credit history after either a) three years after completing the proposal b) six years since the defaulting of the account. Whichever comes first will be applied.  

Equifax: Equifax will remove a consumer proposal from your report three years after you pay all debt or six years after filing the request. Whichever comes first will be applied.

How Does a Consumer Proposal Affect Your Credit?

There are various ways a consumer proposal can affect your credit. That said, keep in mind that these implications are only temporary.

When your consumer proposal is filed and approved, the Office of the Superintendent of Bankruptcy will obtain it and inform the credit bureau. This action will result in several things. 

  • You will likely receive either an R7 credit rating (keep in mind that if you don’t make your payments, this will also occur). Bankruptcy, on the other hand, results in an R9 score
  • The proposal will show up on two sections of your credit rating for three years (the legal and/or public records section of your credit report).
  • Each creditor will indicate that your account was included in a proposal 
  • The date of the filing is recorded and then updated upon completion. 
  • On occasion, your creditors may indicate a bankruptcy on your credit report instead of a proposal. You can request an update to rectify this.

These implications are removed once your consumer proposal is completed, leaving you with a fresh slate to rebuild your credit and achieve financial wellness. The sooner you complete the proposal, the sooner you can start rebuilding.

Rebuilding Your Credit

There are various ways to rebuild your credit after filing a consumer proposal. This includes:

  • Applying for a Secured Credit Card
  • Making sure you repay everything on time 
  • Paying in larger amounts when you can; not just the minimum
  • Avoiding opening new accounts before current ones are paid

Filing Consumer Proposals with David Sklar & Associates 

The hardest part of the consumer proposal process is asking for help. The team of compassionate Licensed Insolvency Trustees at David Sklar & Associates will guide you throughout the process, help you weigh your options, and make suggestions based on your unique situation. 

There is no one size fits all debt relief solution, and our compassionate trustees work with you to identify the solution that will be best suited to you so that you achieve financial independence as soon as possible. 

We provide the credit counselling required to file a proposal and establish debt management and financial plans for your future. Contact David Sklar & Associates to book your initial consultation.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below.

We know this is stressful, but you’re not alone. It’s going to be okay. 
Book your free consultation today. We’ll do the rest.

Contact Us