A consumer proposal is a legal deal with your creditors to repay part of what you owe, over up to five years. This consumer proposal calculator estimates your monthly payment and compares it with paying your debts in full. It’s a starting point for a conversation with a Licensed Insolvency Trustee, not an offer.
Consumer proposal calculatorEstimate your monthly payment in a consumer proposal and compare it with paying your debts in full.
Estimated monthly payment
Total you’d pay
Debt you wouldn’t repay
Compared with paying in full
| Monthly payment | Total paid |
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How a consumer proposal works
Here’s how it works, according to the federal Office of the Superintendent of Bankruptcy (OSB):
- Who can file: people whose total debts are $250,000 or less, not counting a mortgage on their principal residence.
- Who runs it: a Licensed Insolvency Trustee (LIT). You make payments to the trustee, and the trustee pays your creditors.
- What you offer: to pay a percentage of what you owe, to take more time to pay, or both.
- How long: no more than five years.
- Collection stops: once it’s filed, you stop paying your unsecured creditors directly, and wage garnishments and lawsuits are stopped.
- Counselling: you attend two financial counselling sessions.
How creditors decide
- Creditors have 45 days to accept or reject the proposal.
- Creditors owed at least 25% of the total proven claims can ask for a meeting, where creditors vote. Votes are weighted by how much each creditor is owed, and a simple majority by dollar value decides.
- If no meeting is requested within 45 days, the proposal is deemed accepted.
- If you miss three monthly payments, the proposal is annulled.
A worked example
Say you owe $40,000 in credit cards and loans at an average of 19.99%:
| Option | Monthly payment | Total paid |
|---|---|---|
| Consumer proposal: repay 35% over 5 years | $233 | $14,000 |
| Pay in full over 5 years | $1,060 | $63,572 |
| Pay in full over 3 years | $1,486 | $53,508 |
The 35% here is only an example to show the math. The real amount depends on your situation, and your creditors have to accept it.
Effect on your credit
The OSB says filing a consumer proposal usually means being assigned the lowest possible credit score. It stays on your credit report for the length of the proposal plus a few years after, depending on your province. When you finish, you get a certificate of full performance, and the OSB suggests sending a copy to the credit bureaus.
Other options to look at first
- A repayment plan you run yourself. If you can afford the payments, the debt snowball calculator or debt repayment calculator shows when you’d be debt-free.
- Talking to your lenders. Ask about a lower rate or a payment plan before you fall behind.
- Non-profit credit counselling. The Financial Consumer Agency of Canada has tips on getting help from a credit counsellor.
- A Licensed Insolvency Trustee. A consumer proposal is administered by an LIT. The OSB explains how proposals and bankruptcies work.
Frequently asked questions
How is a consumer proposal payment calculated?
A Licensed Insolvency Trustee helps you work out an offer your creditors are likely to accept. That total is split into payments over up to five years. This calculator shows the math for any share you enter.
What’s the most I can owe to file a consumer proposal?
Your total debts must be $250,000 or less, not counting a mortgage on your principal residence.
How long does a consumer proposal last?
No more than five years.
What happens if I miss payments?
The proposal is annulled if you miss three monthly payments (or a less frequent payment is more than three months late).
Will a consumer proposal hurt my credit?
Yes. The OSB says you’ll usually get the lowest possible credit score while it’s on your report, which is for the length of the proposal plus a few years.
Related reading
- Debt snowball calculator: pay several debts, smallest first
- Debt repayment calculator: when you’ll be debt-free
- Debt-to-income ratio calculator: how your debts compare to your income
- All calculators
- Line of credit vs credit card: which costs less to borrow
How we checked: The rules on this page (the $250,000 limit, the five-year maximum, the 45-day vote, annulment after three missed payments, counselling and credit effects) come from the Office of the Superintendent of Bankruptcy. The calculator divides the share you enter by the number of months. The “pay in full” rows use a standard loan payment at your interest rate. We are not trustees, and this page isn’t financial or legal advice. Trustee fees and your actual offer depend on your situation, so ask a Licensed Insolvency Trustee. Sources: OSB: You owe money (consumer proposals); FCAC: Getting help from a credit counsellor. Last checked October 2026.