Credit after a consumer proposal in Canada: when it leaves your report, and how to rebuild
Finishing a consumer proposal is a real achievement, and it can feel like your credit is frozen in place afterward. It is not. Here is how the timeline works, the one thing to check the day you finish, and the habits FCAC says move a score back up.
On this page
Removal date calculator
When should your consumer proposal leave your credit report?
Uses FCAC's rule for both bureaus: whichever comes first. The Office of the Superintendent of Bankruptcy describes Equifax as removing a proposal 3 years after completion, without the 6-year cap, so check each bureau's report around your date. A proposal cannot run longer than 5 years.
How long a proposal stays on your report
| Item | When Equifax and TransUnion remove it (FCAC) |
|---|---|
| Consumer proposal | 3 years after you pay off all the debts in the proposal, or 6 years after you sign it, whichever comes first |
| Debt management plan | 2 years after you finish paying off your debts |
| First bankruptcy | Usually 6 years after discharge; TransUnion keeps it 7 years in Newfoundland and Labrador, Ontario, Prince Edward Island and Quebec |
| Second bankruptcy | 14 years |
One wrinkle: FCAC applies "whichever comes first" to both bureaus, while the Office of the Superintendent of Bankruptcy (OSB) describes Equifax as removing a proposal 3 years after completion. Because the two official sources word it differently, pull both reports around your expected date and dispute anything that stays too long.
Notice what the rule means for a full 5-year proposal: 3 years after finishing is year 8, so the 6-years-from-signing cap usually decides the date under FCAC's rule. Paying a proposal off early can bring the date forward only if you finish within the first 3 years.
What a consumer proposal is
- A legal deal with your creditors. It is a formal, legally binding process administered by a Licensed Insolvency Trustee. It is available to individuals whose debts, not counting a mortgage on their principal residence, are $250,000 or less.
- Up to 5 years. The Bankruptcy and Insolvency Act says the proposal must be completed within five years.
- Collection stops. Once filed, you stop paying unsecured creditors directly, and wage garnishments and lawsuits by those creditors are stopped. Secured creditors are generally not covered by this stay.
- Creditors vote. Creditors have 45 days to accept or reject. If no meeting is requested in that time, the proposal is deemed accepted.
- Two counselling sessions. You must attend two financial counselling sessions.
- Fees are regulated. The OSB says fees are regulated under the Act and are paid out of the payments you make to the trustee.
- Missed payments matter. If you pay monthly, the proposal is deemed annulled once you are behind by an amount equal to three payments, unless a court ordered otherwise or an amendment was filed.
The day you finish: certificate and reports
When the proposal is fully performed, the trustee issues a certificate of full performance, and you are released from the debts included in it. You will not get the certificate if you skipped the counselling sessions. The OSB reports proposal filings to Equifax and TransUnion and reports when your obligations have been fully performed. The OSB also suggests sending a copy of your certificate to the credit bureaus yourself, and keeping every proposal document for future lenders.
About a month later, get both reports. FCAC says you can get your credit report free online from Equifax and TransUnion, and checking your own report does not affect your score. Look for the proposal marked as paid or completed, and for any included debt still showing a balance. If something is wrong, FCAC says credit bureaus must correct errors for free; our guide to fixing a credit report error walks through the dispute.
Worked examples
| Case | 3 years after paid off | 6 years after signing | Comes off (FCAC rule) |
|---|---|---|---|
| Signed March 1, 2022; paid on schedule March 1, 2027 | March 1, 2030 | March 1, 2028 | March 1, 2028 |
| Signed January 15, 2025; paid early with a lump sum January 15, 2026 | January 15, 2029 | January 15, 2031 | January 15, 2029 |
In the first case, Dana can start rebuilding right after her certificate in 2027 and has about a year of on-time history before the proposal drops off. In the second, Sam's early payoff moves his removal date two years sooner than the 6-year cap.
For the rebuild, say Dana gets a secured card with a $500 limit. Using less than 30% means keeping the balance under $500 × 30% = $150 when the statement is issued, then paying it in full.
How to rebuild credit
- Pay every bill on time. FCAC calls payment history the most important part of your credit score.
- Use less than 30% of your limit. That is FCAC's guideline across your total available credit. Our credit utilization guide has a calculator.
- Consider a secured card. FCAC says a secured card may be an option if you have bad credit or want to rebuild after past credit problems. Check that your deposit is insured. See our secured credit card guide.
- Apply sparingly. FCAC advises limiting how often you apply for credit. Several applications for the same type of loan within two weeks count as one inquiry.
- Check both reports regularly. Look for errors, fraud, and negative items that stay past their maximum time.
The OSB is honest about the limits: your ability to get credit afterward depends on convincing lenders you can repay, and no one is required to give you credit. Time and a steady record do the work.
Credit cards during a proposal
The OSB says credit cards with a balance are cancelled by the financial institution when you file. You may keep cards that had no balance owing when you filed, and it may be possible to get a secured card or a card with a small limit during the proposal. Whatever you use, the same on-time, under-30% habits apply.
Options people compare
| Option | How long on your report (FCAC) | Watch for |
|---|---|---|
| Debt management plan | 2 years after you finish paying | Fees are not regulated, per the OSB |
| Consumer proposal | 3 years after payoff or 6 after signing, whichever first | Annulment if you fall three payments behind |
| Bankruptcy | Usually 6 years after discharge (7 for TransUnion in some provinces) | 14 years for a second bankruptcy |
These are options to understand, not recommendations. A Licensed Insolvency Trustee can explain which applies to you; the OSB notes many offer a free first consultation. More calculators are on the tools page.
How to rebuild credit after a consumer proposal
- Finish every payment and attend both counselling sessions so you receive your certificate of full performance.
- Send a copy of the certificate to Equifax and TransUnion and keep all your proposal documents.
- About a month later, get both credit reports free online and confirm the proposal shows as completed.
- Dispute any debt from the proposal that still shows a balance.
- Open one secured or low-limit card if you need one, keep the balance under 30% of the limit, and pay in full.
- Use the calculator to note your removal date and check both reports again around it.
Questions people ask
How long does a consumer proposal stay on my credit report?
FCAC says Equifax and TransUnion remove a consumer proposal 3 years after you pay off all the debts in it, or 6 years after you sign it, whichever comes first. The OSB describes Equifax as removing it 3 years after completion, so check both reports around your date.
Does paying off a consumer proposal early help my credit?
It can bring the removal date forward. Under FCAC's rule, if you finish within 3 years of signing, the proposal comes off 3 years after payoff instead of 6 years after signing. It also starts your clean payment history sooner.
How do I make sure my credit report shows the proposal as completed?
The OSB reports when your obligations are fully performed. It also suggests sending a copy of your certificate of full performance to the credit bureaus and keeping your documents. Then get both reports free online and dispute any error.
Can I get a credit card after a consumer proposal?
Possibly. The OSB says it may be possible to get a secured card or a card with a small limit even during a proposal, and FCAC says a secured card may be an option for rebuilding after past credit problems. No lender is required to give you credit.
What happens if I miss payments on my consumer proposal?
If you pay monthly, the Bankruptcy and Insolvency Act says the proposal is deemed annulled once you are behind by an amount equal to three payments, unless a court ordered otherwise or an amendment was filed. Talk to your trustee early.
How long does a debt management plan stay on my credit report?
FCAC says credit bureaus remove a debt management plan 2 years after you finish paying off your debts.
Does checking my credit report lower my score?
No. FCAC says checking your own credit report or score does not affect your credit score.
Looni reads your statements and flags interest, late fees and card charges as they happen, so your rebuild stays on track. Read-only, no advice.
Sources
Financial Consumer Agency of Canada, How long information stays on your credit report, Improving your credit score, Choosing a credit card, Ordering your credit report and Checking your credit report for errors; Office of the Superintendent of Bankruptcy, Compare debt solutions and Consumer proposals; Bankruptcy and Insolvency Act (sections 66.11, 66.12, 66.31, 66.38, 69.2). Dates in the examples are illustrative; the arithmetic is ours.