Consumer proposals can be filed for as few as one lump-sum payment to as many as sixty monthly payments. Sixty months is the longest term under the Bankruptcy and Insolvency Act.
Most of the consumer proposals I help people to file are set up at sixty months. The main reason for this is because I want to give people that are filing with me the maximum amount of flexibility.
By spreading the payments out over the maximum period it allows for the lowest required monthly payment. That way, if the individual who’s filing has some financial issues during the term of the proposal, they are not required to make an unnecessarily large monthly payment.
If the individual makes more money than expected, or can afford to pay more than the required minimum payment during the term, they always have the option to pay it off early.
