If a Consumer Proposal is not approved by a simple majority of creditors ( i.e. 50% + 1 ), then the Proposal fails. The Trustee has 15 days to call another meeting of the creditors and the debtor to make another proposal. If the second proposal fails to get a simple majority of the creditors, the debtor is officially declared Insolvent. To be insolvent, means you cannot meet your financial obligations when they become due. Therefore, if you are insolvent, you are bankrupt.
All Consumer Proposals have a maximum period of 5 years but can be established for a shorter period. Equifax's POLICY is that all Registered Consumer Proposals will purge from the system 3 years from the last date paid. For example, if a Consumer Proposal is for 5 years and all payments are made as agreed, the Consumer Proposal will remain on the system for a total of 8 years ( 5 + 3 ).
TransUnion's POLICY is that all Registered Consumer Proposals will purge from the system 3 years from the date the proposal was satisfied.
Equifax's POLICY is that a Bankruptcy will purge from the system 6 years from the date of discharge if it is a first Bankruptcy. Subsequent Bankruptcies will purge from the system 14 years from the date of discharge. An assignment in Bankruptcy can last as little as 9 months until the date of discharge or as per the September 2009 amendments to the Bankruptcy and Insolvency Act, can last as much as 21 months until the date of discharge. Therefore, under the worst case scenario, a Bankruptcy will purge from the system 7 years + 9 months ( 6 years + 21 months ). In a subsequent Bankruptcy, it will purge from the system 15 years + 9 months ( 14 + 21 months).
TransUnion's POLICY is that a single Bankruptcy in ON, PQ, NB, PEI, and NL will purge from the system 7 years from the date of discharge. In all other Provinces/Territories, the Bankruptcy will purge from the system 6 years from the date of discharge. Subsequent bankruptcies will purge from the system 14 years from the date of discharge.