Consumer proposal payments

May 13th, 2008 by Questions

If I file a 3 year $350/mth proposal but end up being able to pay $700 per month, I will be able to complete my proposal in 1.5 years instead. Is there any penalty to paying it off early?

Also, if it is finished in 1.5 years then it will be on my credit report for 4.5 years, right?

Posted from: Alberta


One Response to “Consumer proposal payments”

, Barton Goth GCO Bankruptcy Trustees said:

This partially depends on how the proposal is worded, but typically there is no penalty to paying it off early and people are encouraged to do so whenever possible.

As for the impact on credit, you are right there is an R7 that lis listed for a maximum of 3 years from the completion of your proposal, so in your example 4.5 years is correct, at the end of that time the R7 will be automatically purged.

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