What Happens If My Consumer Proposal Is Annulled?

Understanding Consumer Proposals and their Annulment

Living with rising debt can be a daunting experience. One way to manage this is through filing a consumer proposal. However, missing several payments can put you at risk of annulment. What happens if your consumer proposal is annulled? Let’s delve into this important topic.

The Aftermath of Annulment

When your consumer proposal is annulled due to missed payments or other circumstances, it no longer remains in effect. This means that your creditors are free to recommence their collection efforts against you.

The Next Steps Post-Annulment

If you find yourself in a situation where your consumer proposal has been annulled, it’s crucial to consult a licensed insolvency trustee (LIT) immediately. In certain cases, there might still be a chance to revive your proposal within 30 days of the annulment. If this period has passed, you would need to go to court to revive your consumer proposal.

You could try renegotiating with your creditors, but tread carefully as this can be fraught with risks. After the annulment of your proposal, you lose the protection you previously had against your creditors.

If reinstating your consumer proposal proves impossible, you may need to opt for bankruptcy as a way to regain protection against your creditors and tackle your debts.

Proactive Measures to Prevent Annulment

Prevention is always better than cure. Here are a few proactive steps to avoid annulment of your consumer proposal:


Negotiate manageable monthly payments. Make sure your monthly payment is less than what you were previously paying monthly. You could consider extending the repayment period. A consumer proposal can stretch to a maximum of five years.

Align your payments with your payday. This can help to prevent missed payments and avoid bouncing checks.

Make additional payments. If your consumer proposal permits, and you have the means, making extra payments can be beneficial. For instance, if you receive a tax refund or a work bonus, use part of it to make an additional payment on your consumer proposal.


If your financial situation changes and you can’t keep up with your payments, speak to your LIT or Administrator at the earliest.

Seeking Help for Consumer Proposal Annulment

If you need assistance in reinstating your consumer proposal, the licensed insolvency trustees at Bankruptcy Canada are here to help. Our team will patiently listen to your needs, analyze your financial situation and get to the root of your debt troubles. We now offer virtual appointments for consumer proposals for clients all over Canada.

Reach out to us today to find out more!

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.