Canadian · Debt relief
Consumer proposal vs bankruptcy calculator.
Put your numbers into one page and see what each route costs you, how long each lasts and roughly what creditors receive, using the 2026 OSB surplus income standards and the fee tariff in the Bankruptcy and Insolvency General Rules.
A consumer proposal can run up to 5 years and is open to people owing no more than $250,000 (not counting debts secured on the principal residence). A first bankruptcy ends in 9 months, or 21 months if you must pay surplus income. Enter your figures to compare.
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Enter your details to see the result.
How this comparison is built
Bankruptcy. Your surplus income is worked out as in OSB Directive 11R2-2026: the family unit's available monthly income minus the Superintendent's standard for your family size; if the surplus is $200 or more you pay 50% of it, scaled to your share of the family's income, until discharge. Automatic discharge is 9 months (21 with surplus income payments) for a first bankruptcy and 24 months (36) for a second, under BIA s. 168.1(1). The trustee's fee follows Rule 128 for a summary administration: 100% of the first $975 of receipts, 35% of the next $1,025 and 50% beyond $2,000, plus a $100 lump sum for administration, two counselling sessions, the filing fee and the $50 registrar fee.
Consumer proposal. The administrator's fees come from Rule 129: $750 on filing, $750 on court approval and 20% of the money distributed to creditors, plus counselling, the filing fee and the registrar fee. Your payments are assumed to cover those fees first; the rest is what creditors receive. A proposal cannot run beyond five years (BIA s. 66.12(5)).
What this does not do. It does not decide whether creditors would accept your offer, value your property, apply provincial exemptions, or model secured debts, student loans, support arrears or a Division I proposal. Fee amounts that the OSB indexes each March 31 use the 2025-26 values on its table.
When each route tends to fit
Bankruptcy is shorter, but it uses your non-exempt property and any surplus income. A proposal lets you keep property but runs longer and needs creditor acceptance. Both are filed through a Licensed Insolvency Trustee, and the OSB says that first consultations are typically free.
Sources, read 16 October 2026: OSB - Directive No. 11R2-2026, Surplus Income, Justice Laws - Bankruptcy and Insolvency Act, Justice Laws - Bankruptcy and Insolvency General Rules, OSB - indexed filing fee table, OSB - Directive No. 1R8, Counselling, OSB - Consumer proposals, OSB - Considering bankruptcy.
Frequently asked questions
Is a consumer proposal cheaper than bankruptcy?
It depends on your income, property and debts. This page totals both from the published rules so you can see the gap. In a proposal the trustee fee is 20% of money distributed plus fixed amounts; in bankruptcy the fee comes out of what you pay and surrender.
Who can file a consumer proposal?
A consumer debtor: someone insolvent or bankrupt whose debts, excluding debts secured on the principal residence, are not more than $250,000 (BIA s. 66.11). The term cannot exceed five years.
How long does bankruptcy last in Canada?
For a first bankruptcy the automatic discharge is 9 months, or 21 months if you must make surplus income payments. For a second bankruptcy it is 24 or 36 months (BIA s. 168.1(1)).
Does this tool tell me which to choose?
No. It estimates costs from public figures. A Licensed Insolvency Trustee reviews your whole situation, including secured debts and exempt property.
Estimate only — not legal advice
Estimate only. This tool is not legal, financial or insolvency advice. A Licensed Insolvency Trustee decides the figures that apply to you. Figures follow OSB Directive 11R2-2026 and the Bankruptcy and Insolvency Act and General Rules as published on 16 October 2026; they change, so confirm them. Nothing you enter is sent anywhere or stored.