How Long Does a Consumer Proposal Take to Complete?

If you’re considering a consumer proposal in Manitoba, you might be wondering how long the process takes—and what each stage looks like. The good news is that consumer proposals offer a clear path to becoming debt-free, with most proposals lasting between 3 to 5 years.

Here’s a breakdown of the timeline and what you can expect at each stage:

1. Initial Consultation – 1 to 2 Weeks

You’ll meet with a Licensed Insolvency Trustee (LIT) to assess your financial situation. They’ll explain your options and help you decide if a consumer proposal is right for you. At Lazer Grant, we offer free, no-pressure consultations in Winnipeg.

2. Filing the Proposal – 1 to 3 Days

Once the paperwork is ready, your trustee will file the proposal with the Office of the Superintendent of Bankruptcy (OSB). At this point, creditor calls, wage garnishments, and interest stop immediately.

3. Creditor Voting Period – 45 Days

Creditors have 45 days to accept or reject the proposal. If the majority (by dollar value) agree, the proposal is legally binding on all. Most proposals filed by Lazer Grant are accepted without issue.

4. Payment Period – Up to 60 Months

The proposal usually involves fixed monthly payments over a period of up to 5 years (60 months). However, you can pay it off sooner without penalty if your financial situation improves.

5. Completion and Certificate of Full Performance

Once you’ve made all your payments, you’ll receive an official certificate stating you’ve fulfilled your obligations. This clears your remaining unsecured debt and allows you to move forward with your financial life.

Tips to Stay on Track:

• Set up automatic payments to avoid missed deadlines
• Stick to your monthly budget and avoid new debt
• Talk to your trustee if your financial situation changes

Real-Life Winnipeg Example:

A Fort Garry resident with $35,000 in debt filed a consumer proposal and paid it off in just 36 months after securing a new job. They’re now debt-free and rebuilding their credit.

Final Thoughts:

Consumer proposals are structured, manageable, and time-bound. Whether you finish in three years or five, the process gives you a clear end date and a real opportunity to start fresh.

Lazer Grant’s Winnipeg team is here to help guide you through each step. Book a free consultation and find out how long it would take for you to become debt-free.