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

Debt Solutions

Aug 29, 202524 min readUpdated Sep 24, 2025Fact-Checked

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.

Whether you are considering a consumer proposal yourself, advising clients, or researching Canadian insolvency trends, this article delivers the numbers you need in a single resource.

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.

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.

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.

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.

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.

What Causes Consumer Proposals to Fail?

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

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

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:

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.

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.

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

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

Types of Debt Included

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.

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.

2026 Forecast and Emerging Trends

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

1. 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.



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



3. 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%.



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



5. 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.

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:

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.

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.

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.

Comparing Debt Solutions Available in Canada

Canada offers a comprehensive range of debt resolution options from informal arrangements to legally binding proceedings. Understanding the full spectrum and their respective advantages helps you choose the approach that best fits your situation.

Debt consolidation combines multiple debts into a single loan with a lower interest rate. This works best for Canadians with a reasonable credit score of 650 or above. Consolidation loans are available from banks, credit unions, and online lenders, with rates typically ranging from 6 to 15 percent depending on creditworthiness.

A consumer proposal, administered through a Licensed Insolvency Trustee, is a legally binding agreement to repay a portion of your debt over a maximum of five years. Proposals allow you to retain your assets, stop interest from accumulating, and halt all collection actions including wage garnishments. Creditors typically accept proposals offering 30 to 50 cents on the dollar.

Debt Management Plans, administered through non-profit credit counselling agencies, involve negotiated interest rate reductions while you repay 100 percent of your principal over three to five years. Unlike consumer proposals, DMPs are not legally binding but have a less severe credit impact.

How to Negotiate Effectively with Canadian Creditors

Direct negotiation with creditors is an underutilized strategy that can yield significant results. Understanding the process and your leverage points increases your chances of a favourable outcome whether you seek a lower interest rate, payment plan, or settlement.

The first step is understanding your position. Creditors are businesses that want to recover as much money as possible while minimizing costs. If you can demonstrate that the alternative to negotiation is a consumer proposal or bankruptcy where they might recover only 20 to 40 cents on the dollar, they have a financial incentive to work with you.

For credit card companies, common outcomes include temporary interest rate reductions, waived late fees, and hardship programs. Major Canadian banks maintain financial hardship departments staffed with agents authorized to offer concessions beyond what front-line representatives can provide — always ask to be transferred.

Collection agencies operate under different dynamics than original creditors. Agencies that purchase debt typically pay between 3 and 15 cents on the dollar, meaning they can profit from a settlement at 30 to 50 percent of the original balance. Always request a pay-for-delete agreement in writing, meaning the agency removes the collection entry from your credit report upon receiving your settlement payment.

The Psychology of Debt and Financial Recovery

The psychological burden of debt extends far beyond the financial numbers, affecting mental health, relationships, and decision-making ability. Understanding the emotional dimension of debt is crucial for developing a sustainable recovery plan that addresses both the financial and psychological challenges.

Research from Canadian mental health organizations has consistently found strong correlations between high debt levels and anxiety, depression, and relationship stress. A 2024 study by the Canadian Mental Health Association found that 48 percent of Canadians reported that financial stress had a significant negative impact on their mental health, with those carrying high-interest debt being three times more likely to report symptoms of anxiety.

The debt-shame cycle is one of the most destructive psychological patterns associated with financial difficulty. Many Canadians avoid checking their statements, opening mail from creditors, or seeking help because the emotional pain of confronting their debt feels overwhelming. This avoidance typically worsens the situation as late fees accumulate, interest compounds, and collection actions escalate.

Breaking this cycle requires acknowledging that debt is a financial problem with financial solutions, not a moral failing. Millions of Canadians carry significant debt, and the existence of formal programs like consumer proposals, debt management plans, and bankruptcy protection reflects society’s recognition that financial setbacks can happen to anyone.

Understanding the Canadian Regulatory Framework

Canada’s financial regulatory environment provides some of the strongest consumer protections in the world. The Financial Consumer Agency of Canada (FCAC) serves as the primary federal watchdog, overseeing banks, federally regulated credit unions, and insurance companies to ensure they comply with consumer protection measures established under federal legislation.

Each province and territory also maintains its own consumer protection office that handles complaints and enforces provincial lending laws. For instance, Ontario’s Consumer Protection Act sets specific rules about disclosure requirements for credit agreements, while British Columbia’s Business Practices and Consumer Protection Act provides additional safeguards against unfair lending practices.

The Bank Act, which governs all federally chartered banks in Canada, requires financial institutions to provide clear disclosure of all fees, interest rates, and terms before you enter into any credit agreement. This includes a mandatory cooling-off period for certain financial products, giving you time to reconsider your decision without penalty.

Recent amendments to Canada’s financial legislation have strengthened protections around electronic banking, mobile payments, and online lending platforms. These changes reflect the evolving financial landscape and ensure that digital-first financial services must meet the same consumer protection standards as traditional banking channels. The implementation of open banking regulations further ensures that consumer data portability rights are protected as the financial ecosystem becomes more interconnected.

How Canadian Credit Bureaus Work Behind the Scenes

Canada operates with two major credit bureaus — Equifax Canada and TransUnion Canada — each maintaining independent databases of consumer credit information. Unlike the United States, which has three major bureaus, Canada’s two-bureau system means that discrepancies between your reports can have an even more significant impact on your borrowing ability.

Both bureaus collect information from creditors, public records, and collection agencies across all provinces and territories. However, not every creditor reports to both bureaus, which means your Equifax report might show different accounts than your TransUnion report. This is particularly common with smaller credit unions, provincial utilities, and some fintech lenders that may only report to one bureau.

Your credit file is created the first time a creditor reports account information to a bureau in your name. From that point forward, creditors typically update your account information monthly, usually reporting your balance, payment status, and credit limit as of your statement date. This monthly reporting cycle is why changes to your credit behaviour may take 30 to 60 days to appear on your credit report.

Canadian privacy law, specifically the Personal Information Protection and Electronic Documents Act (PIPEDA), governs how credit bureaus collect, use, and share your information. Under PIPEDA, you have the right to access your credit report for free by mail, dispute inaccurate information, and add a consumer statement to your file explaining any negative items. Credit bureaus must investigate disputes within 30 days and correct any confirmed errors.

Provincial Differences That Affect Your Finances

One of the most important yet overlooked aspects of personal finance in Canada is the significant variation in provincial laws and regulations that directly impact your financial life. While federal legislation provides a baseline of consumer protections, each province has enacted its own laws governing areas like interest rate caps, collection practices, and consumer rights.

In Alberta, the Fair Trading Act limits the total cost of payday loans to $15 per $100 borrowed, while in British Columbia the cap is set at $15 per $100 under the Business Practices and Consumer Protection Act. Ontario recently reduced its cap to $15 per $100 as well, but Quebec effectively prohibits payday lending altogether by capping interest rates at the Criminal Code maximum.

Collection agency regulations also vary dramatically between provinces. In Ontario, collection agencies cannot contact you on Sundays or statutory holidays, and calls are restricted to between 7 AM and 9 PM local time. In British Columbia, similar restrictions apply, but the specific hours and permitted contact methods differ. Saskatchewan requires collection agencies to be licensed provincially and limits the frequency of contact attempts.

Property and inheritance laws that affect financial planning also differ by province. Quebec follows civil law rather than common law, which means significantly different rules around spousal property rights, estate distribution, and even how secured credit agreements are structured.

Digital Banking and Fintech in Canada

The Canadian financial landscape has transformed dramatically with the rise of digital banking and fintech platforms. Online-only banks like EQ Bank, Tangerine, and Simplii Financial now offer competitive alternatives to traditional Big Five banks, often providing higher interest rates on savings accounts, lower fees, and innovative digital tools that make managing your finances more convenient.

Canada’s Open Banking framework, which began its phased implementation in 2024 under the leadership of the Department of Finance, is set to fundamentally change how Canadians interact with financial services. Open Banking allows you to securely share your financial data with authorized third-party providers, enabling services like automated savings tools, loan comparison platforms, and comprehensive financial dashboards.

Buy Now, Pay Later services like Afterpay, Klarna, and PayBright have gained significant traction in Canada. While these services offer interest-free installment payments, most BNPL providers do not currently report to Canadian credit bureaus, which means timely payments will not help build your credit history. However, missed payments may eventually be sent to collections, which would negatively impact your credit score.

Cryptocurrency and decentralized finance platforms are increasingly popular among Canadian consumers, but they operate in a regulatory grey area. The Canadian Securities Administrators have implemented registration requirements for crypto trading platforms, and the Canada Revenue Agency treats cryptocurrency as a commodity for tax purposes, meaning capital gains on crypto transactions are taxable.