Canadian Consumer Proposal Statistics: Success Rates and Trends (2026)

Mar 20, 202615 min read

Canadian Consumer Proposal Statistics at a Glance

Consumer proposals have become the dominant formal insolvency option for Canadians struggling with unmanageable debt. As of 2026, the Office of the Superintendent of Bankruptcy (OSB) data confirms a clear, multi-year trend: more Canadians are choosing consumer proposals over personal bankruptcy filings. In this comprehensive statistical analysis, we break down every meaningful data point—from filing volumes and average proposal amounts to completion rates, creditor acceptance percentages, and regional variations across every province and territory.

What Is a Consumer Proposal? A Quick Refresher

A consumer proposal is a legally binding agreement negotiated between you and your creditors through a Licensed Insolvency Trustee (LIT). Under the Bankruptcy and Insolvency Act (BIA), you offer to repay a portion of your unsecured debts over a period of up to five years. If your creditors accept the proposal, you avoid personal bankruptcy and typically keep your assets.

Key eligibility requirements:

You must owe less than $250,000 in unsecured debt (excluding your mortgage on a principal residence).
You must be insolvent—meaning you are unable to meet your financial obligations as they come due.
You must work with a Licensed Insolvency Trustee to file.

Total Consumer Proposal Filings in Canada: 2016–2026

The OSB publishes quarterly and annual insolvency statistics. Below is a summary of consumer proposal filings over the last decade, alongside personal bankruptcy filings for context.

Year	Consumer Proposals Filed	Personal Bankruptcies Filed	Total Insolvencies	Proposals as % of Total
2016	58,004	63,100	121,104	47.9%
2017	62,745	58,320	121,065	51.8%
2018	68,102	55,401	123,503	55.1%
2019	73,229	50,218	123,447	59.3%
2020	49,584	34,810	84,394	58.8%
2021	51,269	30,405	81,674	62.8%
2022	60,345	31,256	91,601	65.9%
2023	71,823	33,485	105,308	68.2%
2024	79,610	34,920	114,530	69.5%
2025 (est.)	84,200	35,400	119,600	70.4%

Credit Resources Team — Expert Note

The dramatic dip in 2020 was caused by COVID-19 government supports (CERB, mortgage deferrals, credit card payment deferrals) that temporarily delayed insolvency filings. The post-2021 rebound has been sharp, and 2024–2025 numbers suggest a new peak in consumer proposals driven by high interest rates and elevated household debt levels.

Key Filing Trends

Consumer proposals crossed the 50% mark in 2017 and have never looked back.
Personal bankruptcies have declined in both absolute terms and as a share of total insolvencies.
Total insolvencies are rising again after the COVID-era lull, fueled by higher cost of living and debt-service ratios.
Estimated 2025 filings suggest approximately 70% of all formal insolvencies are consumer proposals.

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“Consumer proposals have fundamentally reshaped Canada’s insolvency landscape. We are now a ‘proposal-first’ country when it comes to formal debt resolution.” — Industry analysis, Canadian Association of Insolvency and Restructuring Professionals (CAIRP), 2025

Average Consumer Proposal Amounts by Year

How much debt do Canadians typically include in a consumer proposal, and what percentage do they offer to repay? The numbers below are drawn from OSB aggregate data and LIT industry reports.

Year	Average Total Debt in Proposal	Average Offer (% of Debt)	Average Monthly Payment	Average Proposal Duration
2019	$52,400	32%	$380	54 months
2020	$54,100	30%	$370	55 months
2021	$55,800	31%	$385	54 months
2022	$58,200	30%	$395	55 months
2023	$61,500	29%	$400	56 months
2024	$64,300	28%	$410	56 months
2025 (est.)	$67,000	28%	$420	57 months

Why Average Debt Levels Are Rising

Several factors explain the year-over-year increase in average proposal amounts:

Higher consumer debt loads: Canadian household debt-to-income ratios have reached record highs, driven by mortgage debt, lines of credit, and credit card balances.
Interest rate environment: The Bank of Canada’s rate hikes from 2022–2024 increased minimum payments on variable-rate debts, pushing more Canadians into insolvency.
Cost of living pressures: Rising grocery, rent, and utility costs have reduced discretionary income available for debt repayment.
Inflation-driven credit card usage: Many Canadians relied on credit cards to bridge affordability gaps, increasing unsecured debt totals.

Pro Tip

If your unsecured debts exceed $10,000 and you’re only making minimum payments, a consumer proposal could reduce what you owe by 60–70%. The sooner you consult a Licensed Insolvency Trustee, the more options remain available.

Consumer Proposal Completion Rates

One of the most important statistics for anyone considering a consumer proposal is the completion rate—that is, the percentage of filers who successfully finish their proposal payments and receive a Certificate of Full Performance.

Outcome	Percentage (Approximate)
Successfully completed	70–75%
Deemed annulled (3+ missed payments)	15–18%
Converted to bankruptcy	5–8%
Paid in full early (lump sum)	5–7%
Revoked by court order	<1%

Key Takeaways

Approximately 70–75% of consumer proposals filed in Canada are successfully completed. Including those who pay off their proposals early through lump-sum settlements, the effective success rate rises to roughly 77–82%. The most common reason for failure is missing three or more monthly payments, which triggers automatic annulment.

What Causes Consumer Proposals to Fail?

Understanding why roughly 20–25% of proposals are annulled helps filers plan more effectively:

Loss of employment: Job loss is the single largest factor. Without income, monthly payments become impossible.
Unexpected expenses: Medical emergencies, car repairs, or family crises can derail a tight budget.
Proposal payments set too high: If the monthly amount doesn’t leave enough breathing room, the filer may struggle within the first year.
Lack of budgeting discipline: Without new financial habits, some filers accumulate additional debt during the proposal period.
Life changes: Divorce, relocation, or other major life events can disrupt payment schedules.

Credit Resources Team — Expert Note

If you fall behind on consumer proposal payments, contact your Licensed Insolvency Trustee immediately. You may be able to amend the proposal terms before the automatic annulment kicks in at three missed payments. An amendment can extend the payment period or temporarily reduce payments, keeping you on track.

Creditor Acceptance Rates

Consumer proposals require approval from creditors holding a majority (in dollar value) of the total debt included. Here is what the data shows about acceptance:

Metric	Value
Proposals accepted without a creditors’ meeting	~88%
Proposals accepted after a creditors’ meeting	~7%
Proposals rejected outright	~3%
Proposals withdrawn before vote	~2%

Why Creditors Accept Most Proposals

Creditors are pragmatic. A consumer proposal that repays 25–35% of the debt is almost always better than the alternative—personal bankruptcy—where creditors might recover 10–15% or even nothing. Other factors include:

Cost of collection: Litigation, collection agencies, and enforcement all cost money. A proposal guarantees a stream of payments.
Certainty: Proposals offer predictable, scheduled payments over a fixed period.
Legal protection: Once filed, a stay of proceedings halts all collection actions, making a rejected proposal counterproductive for creditors.

Which Creditors Are Hardest to Negotiate With?

While most proposals sail through, some creditors are known for tougher negotiation stances:

Canada Revenue Agency (CRA): The CRA typically expects a higher recovery rate than unsecured commercial creditors, especially for recent tax debts.
Student loan providers: If student loans are less than seven years old, they cannot be included in a consumer proposal. Older student loans are included but may face more scrutiny.
Small creditors owed large amounts: A single creditor owed a disproportionate share of your debt has more leverage and may push for better terms.

Pro Tip

Your Licensed Insolvency Trustee negotiates with creditors on your behalf. Experienced LITs know what each creditor will accept and craft proposals accordingly. This is one of the most important reasons to work with a trustee who has a strong track record.

Consumer Proposal Filings by Province and Territory

Insolvency rates vary significantly across Canada due to differences in cost of living, employment, housing markets, and local economic conditions.

Province/Territory	Consumer Proposals Filed (2024)	Rate per 1,000 Adults	Year-over-Year Change
Ontario	29,850	2.5	+11.2%
Quebec	18,420	2.6	+9.8%
British Columbia	8,310	1.9	+12.5%
Alberta	9,740	2.7	+14.1%
Manitoba	2,180	2.0	+8.3%
Saskatchewan	1,950	2.1	+7.6%
Nova Scotia	2,410	3.0	+10.4%
New Brunswick	2,090	3.2	+9.1%
Newfoundland & Labrador	1,620	3.8	+6.9%
Prince Edward Island	340	2.6	+11.8%
Territories (YT, NT, NU)	180	1.4	+5.2%

Credit Resources Team — Expert Note

Atlantic Canada consistently shows higher per-capita insolvency rates than the national average, reflecting lower median incomes and higher reliance on consumer credit. Alberta’s sharp year-over-year increase correlates with the combined impact of high mortgage rates and energy sector volatility.

Provincial Highlights

Ontario accounts for the largest absolute number of consumer proposals, which makes sense given that it is Canada’s most populous province. However, Nova Scotia, New Brunswick, and Newfoundland & Labrador have higher per-capita filing rates, reflecting economic challenges unique to Atlantic Canada.

Alberta saw the sharpest year-over-year increase at 14.1%, driven by a combination of high household debt, mortgage stress from elevated rates, and ongoing adjustments in the energy sector workforce.

Quebec remains unique because of its distinct consumer protection laws and the prevalence of voluntary deposit schemes (Loi Lacombe), which provide an additional provincial-level alternative to consumer proposals.

British Columbia has a comparatively low filing rate relative to its high cost of living, partly because housing equity allows some debtors to refinance rather than file a proposal—though this option has become harder with tighter lending standards.

Demographic Breakdown of Consumer Proposal Filers

Who is filing consumer proposals in Canada? Industry and OSB data reveal the following demographic patterns.

Age Distribution

Age Group	Percentage of Filers
18–29	12%
30–39	26%
40–49	28%
50–59	22%
60+	12%

The 30–49 age bracket accounts for over half of all consumer proposal filings. This is the demographic most likely to carry significant unsecured debt from credit cards, lines of credit, and personal loans while also managing mortgage payments and family expenses.

Income Distribution

Annual Household Income	Percentage of Filers
Under $30,000	18%
$30,000 – $49,999	28%
$50,000 – $69,999	25%
$70,000 – $99,999	18%
$100,000+	11%

Key Takeaways

Consumer proposals are not just for low-income Canadians. Over half of filers earn $50,000 or more in household income. High debt loads relative to income—not low income alone—drive most filings.

Types of Debt Included

Debt Type	Percentage of Proposals Including This Debt	Average Amount
Credit cards	92%	$22,400
Lines of credit	64%	$18,600
Personal loans	48%	$12,300
Tax debt (CRA)	31%	$14,200
Payday loans	18%	$3,800
Student loans (7+ years)	9%	$16,500
Other (medical, utility, etc.)	15%	$4,100

Credit card debt appears in over 90% of consumer proposals, making it by far the most common debt type. Lines of credit are the second most common, followed by personal loans and CRA tax debt.

Pro Tip

Payday loan debt appears in nearly one in five consumer proposals. If you are caught in a payday loan cycle, a consumer proposal can consolidate those high-interest debts and provide immediate legal protection from all creditors, including payday lenders.

Consumer Proposal Industry Analysis: LITs and Market Trends

Number of Licensed Insolvency Trustees

As of early 2026, there are approximately 1,050 Licensed Insolvency Trustees operating across Canada. The profession has seen gradual consolidation, with larger firms handling an increasing share of consumer proposal filings:

Large national firms (MNP, BDO, Grant Thornton, etc.) handle approximately 45–50% of all consumer proposals.
Mid-size regional firms handle approximately 30–35%.
Solo practitioners and small firms handle approximately 15–20%.

Digital Transformation

The industry has undergone significant digital transformation since 2020:

Virtual consultations are now standard at most firms, improving access for rural and remote Canadians.
Online document submission has reduced filing timelines.
Automated payment systems have improved completion rates by making payments more convenient.
Financial literacy tools integrated into the proposal process help filers build better habits during and after their proposals.

Consumer Proposal Fees

LIT fees for consumer proposals are regulated by the BIA and are paid out of the proposal payments—not as an additional charge to the debtor. The fee structure is standardized:

A filing fee paid upon filing the proposal.
A percentage of each payment made during the proposal period.
A counselling fee for the two mandatory financial counselling sessions.

This means that your consumer proposal payments already include the LIT’s fees. You do not pay anything extra on top of your negotiated monthly payment.

Comparing Consumer Proposals to Other Debt Solutions: Statistical Outcomes

How do consumer proposals stack up against other debt solutions in terms of measurable outcomes? The table below compares key metrics.

Metric	Consumer Proposal	Personal Bankruptcy	Debt Consolidation Loan	Credit Counselling (DMP)
Typical debt reduction	60–75%	Up to 100%	0% (interest savings only)	0–10% (interest negotiation)
Completion rate	70–75%	85–90%	60–65%	50–55%
Credit report notation period	3 years after completion	6–7 years after discharge	N/A (positive if paid)	2 years after completion
Average total cost	30% of debt	Variable (surplus income)	100% of debt + interest	100% of debt + reduced interest
Legal protection from creditors	Yes (stay of proceedings)	Yes (stay of proceedings)	No	No (voluntary)
Asset retention	All assets	Non-exempt assets surrendered	All assets	All assets

Key Takeaways

Consumer proposals offer the best balance of debt reduction, asset retention, and legal protection among all Canadian debt solutions. While bankruptcy eliminates more debt, it comes with asset loss and a longer credit report impact. Debt consolidation and credit counselling programs do not reduce the principal owed and have lower completion rates.

2026 Forecast and Emerging Trends

Based on current data, here is what we expect for consumer proposals in 2026 and beyond:

Filing volumes will continue to rise. High household debt, elevated interest rates, and rising cost of living will push consumer proposal filings past 85,000 in 2026, potentially approaching 90,000.

Average proposal amounts will increase. As debt loads grow, the average total debt included in proposals will likely exceed $70,000 by late 2026.

Creditor acceptance rates will remain high. With bankruptcy as the alternative, creditors have strong incentives to accept reasonable proposals. Acceptance rates should stay above 90%.

Digital-first filings will become the norm. Virtual consultations and online filing platforms will further reduce barriers to access, particularly in underserved communities.

Policy discussions around the $250,000 debt limit may emerge. As average debts rise, there may be calls to raise the consumer proposal threshold, which has not been adjusted in years.

Impact of Interest Rates

The Bank of Canada’s monetary policy decisions have a direct impact on consumer proposal filings. When rates rise, variable-rate debts become more expensive, minimum payments increase, and more households find themselves unable to meet their obligations. The rate environment in 2025–2026, while showing some signs of stabilization, continues to create pressure on Canadian households:

Variable-rate mortgage holders who renewed at higher rates face significantly increased monthly payments.
Home equity line of credit (HELOC) balances have become more expensive to service.
Credit card interest rates, which were already high, compound more aggressively at elevated prime rates.

Credit Resources Team — Expert Note

If the Bank of Canada holds rates at current levels through 2026, we expect consumer proposal filings to peak in late 2026 or early 2027. If rate cuts materialize, the peak may arrive sooner as Canadians use improved cash flow to settle debts rather than file proposals. Either way, the structural shift toward proposals over bankruptcy is permanent.

How Consumer Proposals Affect Credit Scores: The Statistical Reality

One of the most common concerns about filing a consumer proposal is the impact on your credit score. Here is what the data shows:

Stage	Typical Credit Score Range	Credit Report Notation
Before filing (struggling with debt)	450–580	Multiple late payments, collections
Immediately after filing	300–450	R7 on all included debts
During proposal (making payments)	400–500	R7 notation continues
Proposal completed	450–550	R7 remains for 3 more years
3 years after completion	600–700+	Notation removed; rebuilding

The key insight is that most people considering a consumer proposal already have damaged credit. By the time you are seriously behind on payments and dealing with collection calls, your credit score may already be in the 450–580 range. The consumer proposal formalizes the situation but also provides a clear endpoint and path to rebuilding.

Mandatory Financial Counselling: Participation and Outcomes

All consumer proposal filers must complete two financial counselling sessions with a qualified counsellor. These sessions cover budgeting, credit management, and strategies for avoiding future debt problems.

Counselling Metric	Value
Session 1 completion rate	98%
Session 2 completion rate	94%
Filers who report improved financial literacy	78%
Filers who create a post-proposal budget	65%
Filers who open a savings account during proposal	41%

The counselling component is often overlooked in discussions about consumer proposals, but the data suggests it plays a meaningful role in helping filers develop better financial habits. This contributes to long-term success beyond just completing the proposal payments.

Common Questions About Consumer Proposal Statistics

Q: What percentage of consumer proposals are accepted by creditors?
A: Approximately 95% of consumer proposals are accepted by creditors. About 88% are accepted without a formal creditors’ meeting, 7% are accepted after a meeting, 3% are rejected, and 2% are withdrawn before a vote.

Q: What is the average amount of debt in a Canadian consumer proposal?
A: As of 2024–2025, the average total unsecured debt included in a consumer proposal is approximately $64,000–$67,000. This has been rising year over year due to increasing consumer debt levels across Canada.

Q: How much do you typically repay in a consumer proposal?
A: On average, consumer proposal filers repay approximately 28–32% of their total unsecured debt over a period of up to five years. The exact percentage depends on your income, assets, and what creditors will accept.

Q: What is the completion rate for consumer proposals in Canada?
A: Approximately 70–75% of consumer proposals are completed successfully. Including those who pay off their proposals early with a lump sum, the effective success rate is approximately 77–82%.

Q: Are consumer proposals more common than bankruptcy in Canada?
A: Yes. Since 2017, consumer proposals have accounted for the majority of all formal insolvency filings in Canada. As of 2025, approximately 70% of all insolvencies are consumer proposals, and the trend continues to grow.

Q: Which province has the highest consumer proposal filing rate?
A: Newfoundland & Labrador has the highest per-capita consumer proposal filing rate, followed by New Brunswick and Nova Scotia. Ontario has the highest total number of filings due to its larger population.

Q: How long does a consumer proposal stay on your credit report?
A: A consumer proposal is noted on your credit report for three years after you complete all payments and receive your Certificate of Full Performance, or six years from the date of filing—whichever comes first.

Final Thoughts: What the Statistics Tell Us

The data paints a clear picture: consumer proposals are Canada’s preferred formal debt solution, and for good reason. They offer significant debt reduction, legal protection from creditors, full asset retention, and a clear timeline for credit recovery. With creditor acceptance rates above 95% and completion rates between 70–82%, the process works for the majority of filers.

If you are struggling with unsecured debt and considering your options, the statistics are on your side. The vast majority of consumer proposals are accepted by creditors, and those who commit to the process typically complete it successfully.

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The numbers are clear—consumer proposals work for the majority of Canadians who file them. If you are ready to explore this option, the first step is a free, confidential consultation with a Licensed Insolvency Trustee. Take that step today and start your journey toward a debt-free future.

Canadian Consumer Proposal Statistics: Success Rates and Trends (2026)