After making all payments, attending two financial counselling sessions, and satisfying the terms of a consumer proposal, you will receive a Certificate of Full Performance.

This is the last step in the consumer proposal process and the opportunity for a fresh start.

What is a Certificate of Full Performance?

When you complete your consumer proposal, your Licensed Insolvency Trustee will give you a Certificate of Full Performance.

This document officially releases you from your responsibility to repay the debts outlined in your consumer proposal. It also confirms that you made all your monthly payments and satisfied its terms.

It’s proof that you attended the financial counselling sessions and completed the consumer proposal process.

The consumer proposal process.

Your administrator will send you other documents, including a final Statement of Receipts and Disbursements (SRD) and a Notice of Taxation of the Administrator’s Accounts and Discharge of Administrator. These final documents are also sent to your creditors and the Official Receiver.

It is a good idea to send your Certificate of Full Performance to major credit bureaus (Equifax and TransUnion) and lenders when you apply for credit.

Even though credit bureaus are notified by the Office of the Superintendent of Bankruptcy that you’ve completed your proposal, mistakes happen.

Sending the certificate of completion to the credit bureaus ensures that your proposal is marked as discharged on your credit report, and this can also help to improve your credit rating.

When your proposal is finished, your credit report should display no balances for the included unsecured debts. You’ll want a copy of your credit report to ensure this is the case.

What happens after you receive a Certificate of Full Performance?

When you file a consumer proposal, a note will appear on the public records section of your credit report referring to your consumer proposal with the date it was filed.

Once you have completed your proposal and received your Certificate of Full Performance, this note will be removed.

Equifax and TransUnion are the two main credit bureaus in Canada. Each bureau can hold different information about you, so request a credit report from both.

When reviewing your credit report, make sure that there are no mistakes. If you spot any errors, tell the credit bureaus immediately and ask them to update or remove any information that shouldn’t be there.

What debts are released after receiving a Certificate of Full Performance?

When you finish your consumer proposal, you are released from your obligation to repay the remaining balance of your unsecured debts. You can eliminate most unsecured debts, such as:

  • Credit card debts
  • Personal loans
  • Payday loans
  • Bank overdrafts
  • Utility bills (You can’t include bills for services you are continuing to use)
  • Unsecured lines of credit
  • Income tax debts (unless the CRA registers a lien on your property)
  • Student loan debt if you haven’t been a student for seven years or more
  • Unpaid rent
  • Debts owed to friends and family.
You can include tax debt in a consumer proposal.

But you cannot eliminate all debts, such as:

  • Secured debts such as a mortgage or car loan.
  • Property taxes.
  • Any fine or penalty imposed by a court, such as a parking ticket or fine.
  • Unpaid alimony or child support.
  • Debts obtained by fraud.
  • Debt obtained through false pretence (e.g. lying on a loan application).
  • Student loans (if less than seven years since you were a student).
  • An award by a civil court for damages arising from personal or sexual assault.

Wrapping up

After completing a consumer proposal and receiving your Certificate of Full Performance, you can begin your debt-free life and start rebuilding your credit.

If you are in debt, you can discuss your situation with a Licensed Insolvency Trustee. The appointment is free, and there is no obligation.

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