Life After a Consumer Proposal

A Consumer Proposal is a legal agreement set up by a licensed insolvency trustee. The agreement consists of a plan of action that allows you to pay back a portion of the debt you owe, thus giving you a fresh financial start. But what about life after a consumer proposal? Does it mean an end to credit cards or car loans? Not at all. In fact, this is the beginning of your journey to complete financial recovery. In this comprehensive guide, we delve into what happens after you complete your consumer proposal and how you can fully benefit from this opportunity to be debt-free.

Understanding the Aftermath of a Consumer Proposal

A consumer proposal is essentially a debt relief solution that enables you to pay off your creditors in a manner you can afford. It involves a fixed repayment schedule over a period that can stretch up to five years.

Post-Proposal Filings: The Initial Steps

Once you file a consumer proposal, you cease making payments to your unsecured creditors. Instead, you make a single payment to your Licensed Insolvency Trustee. Consequently, creditors are prohibited from making collection calls, suing you, or garnishing your wages to collect on debts included in your proposal.

The Completion of Your Proposal: What Happens Next?

Upon the completion of your consumer proposal repayment plan, you receive a Certificate of Full Performance. This certificate is a testament that you have fulfilled your commitments and completed your consumer proposal. At this point, your debts are discharged, and there are no further payments required to your creditors. You are released from any legal obligations your consumer proposal imposed on you.

Dealing with Creditor Calls Post Proposal

Once your consumer proposal is completed, creditors are no longer allowed to pursue you for debts included in the proposal. However, if creditors continue to call, here’s what you should do:


  • Reach out to your consumer proposal trustee.
  • They can contact the creditor on your behalf.
  • Inform them about the completion of your consumer proposal.
  • Send them a copy of your Certificate of Full Performance, if required.
  • Tell them to cease contacting you.
  • File a complaint with the government against the collection agency, if the calls persist.


Impact on Your Credit Score

Filing a consumer proposal may initially cause your credit score to drop. However, this action is necessary to eliminate your debts, and the impact on your credit rating is temporary.

A consumer proposal will be completely removed from your credit report 6 years from the date of filing, or 3 years from completion, whichever comes first.

Recovery Time Post a Consumer Proposal

The maximum time frame for a consumer proposal is five years.

Financial recovery begins as soon as you file a consumer proposal. You can start seeing improvements in your credit score even while you’re still in the proposal. This is possible if you secure a credit card during the proposal and make timely payments.

Securing Credit Post a Consumer Proposal

Repairing your credit after a consumer proposal takes some time, but it’s not an endless process.

In fact, most people can secure a credit card within the first year of filing a consumer proposal. Some lenders may also offer car loans to individuals in a consumer proposal, albeit at a higher interest rate.

What to Do After Your Consumer Proposal is Paid Off

Your trustee will provide guidance on rebuilding your credit after a consumer proposal during your mandatory credit counselling sessions. Here are some tips on what to do after a consumer proposal:


  • Keep a copy of your Certificate of Full Performance for three years from completion or until your proposal is removed from your credit report.
  • Inspect your credit report from both Equifax and TransUnion one month after your proposal is completed. Ensure that your records are updated correctly.
  • Only take on as much credit as you can afford to repay given your income level.
  • Pay your bills on time.
  • Credit cards make the biggest impact on your credit rating.
  • Avoid applying for too many credit cards at once and increase your credit limits gradually.
  • Pay off your credit cards frequently, preferably every time you make a charge.
  • Focus on your financial health, not your credit score.


The Possibility of Surviving a Consumer Proposal

If you’re grappling with debt, a consumer proposal could be the solution you need. Remember, there is life after a consumer proposal. For more advice and information about how a consumer proposal can help you become debt free, consider reaching out to financial professionals. They can provide all the necessary services through email, phone, or video chat. Why wait? Take the first step towards a debt-free future.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.