Filing a consumer proposal results in an R7 credit rating.
There is no doubt that filing a consumer proposal damages your credit rating. Anything short of paying your creditors in full with interest in the normal course of business will result in a bad mark on your credit bureau report. The R7 credit rating remains on your credit bureau report for 3 years after it’s paid in full.
In plain speech, an R7 credit rating means that you have compromised or settled your debts, which is exactly what a consumer proposal does. Filing stops interest, prevents creditors from taking any further legal and/or collection action, and allows you to compromise/settle your debts.
This process can result in as few as one payment, but many can run for the maximum time period of 5 years or 60 months.
Therefore the R7 credit rating that results from filing could be on your credit report for as few as 3 years up to a maximum of 8 years.
More information on consumer proposals.
