What Is A Certificate Of Full Performance?
The Certificate of Full Performance involves legally releasing you from some or all your debts. This is a type of certificate that only your Consumer Proposal Administrator can give you after you have completed your final proposal payment. It provides proof or validity that you have completed the terms of this proposal and you are discharged from your debts.
On completion of a consumer proposal, you can also expect to receive a Notice of Taxation of the Administrator’s Accounts, a Statement of Receipts and Disbursements, and a Discharge of the Administrator. This is the final documentation that you will receive from your Consumer Proposal Administrator. They will also send these documents to all your creditors, and the Official Receiver once the administrator has closed your file.
What Type Of Debts Will Be Released Once You Have Received Your Certificate Of Full Performance?
Once you have completed your consumer proposal, it releases you from the majority of any unsecured debt you may have had.
Unsecured creditors don’t have direct claims on your assets such as your house or your vehicle. If any of your unsecured creditors have a judgment or execution against any of your assets, these can typically be removed when you have completed a consumer proposal. The common types of unsecured creditors that are usually dealt with in consumer proposals include:
- Credit card debt
- Payday loans
- Lines of credit or bank loans (not secured by assets)
- Guaranteed government student loan debt that has exceeded 7 years from when your study date ended
- The majority of tax debts, provided the government hasn’t instituted a lien registered against any of your property
However, there are a few unsecured creditor types that cannot be removed from your consumer proposal:
- Joint debtor’s liability
- Debt that has arisen from fraud
- Student loans, when your study date ended less than 7 years from when you filed for a consumer proposal
- Any court-imposed penalties or fines
- Restitution orders
What Happens To The Debts That Remain After You Have Completed Your Proposal?
Once you have received your Certificate Of Full Performance, and your Administrator is discharged, you are still liable to pay for any of your outstanding debts that have arisen from penalties, fines, fraud, or restitution orders. It is also important to know that if you are liable to pay child support, alimony, or spousal support it won’t be stayed when you file your consumer proposal. This means if you have obligations to pay child support, alimony, or spousal support, you are required to carry on paying.
When it comes to student loan debt that has been incurred (less than 7 years from the date that you filed a consumer proposal), you may have already consulted with your Licensed Insolvency Trustee and you were making modest or interest-only payments during the length of your consumer proposal. Once you have completed your proposal, it is advisable to start making larger payments towards the student loan to quickly eliminate these debts as well.
Your Credit Report And Your Certificate Of Full Performance
The OSB (Office of the Superintendent of Bankruptcy) is the institution that will report to all the credit bureaus about the date you completed your consumer proposal. Consumer proposal filing remains on credit bureaus for 6 years from the initial date that the proposal was filed or 3 years from the completion of the proposal (whichever date comes first).
It is in your best interest to contact TransUnion and Equifax (the main credit bureaus) a few months after completing your consumer proposal to make sure the completion of your credit proposal is reflected on your credit report. If the proposal is not displayed correctly, fill out a dispute credit report form provided by the credit bureau, and send them a copy of your Certificate of Full Performance so that they can update your records.
What Can I Do If I Am Still Receiving Collection Calls After Completing My Consumer Proposal?
In some cases, debts included in your consumer proposal are now part of batch sales to third-party collection agencies. These sales could take place even once you have completed your consumer proposal. If you receive calls from collection agencies after filing a consumer proposal, you should inform them that you have already filed a consumer proposal. You can also send them copies of either your Certificate of Full Performance or your consumer proposal documentation as proof.
You can also consult with your Licensed Insolvency Trustee for any assistance with issues related to your consumer proposal process. We are always here to guide and help you.