When you receive a Certificate of Full Performance from a Licensed Insolvency Trustee, it means you have completed all of your responsibilities in the consumer proposal, and your unsecured debts are now discharged. This means your creditors will have no legal right to ever collect that debt again.
What is a Certificate of Full Performance Mean in a Consumer Proposal?
A Certificate of Full Performance is a legal release of your unsecured debts in your consumer proposal. This will be provided by the Licensed Insolvency Trustee, who acted as your Consumer Proposal Administrator. To receive this certificate, you must have completed all the terms of the consumer proposal, which are generally:
1) Paid the total amount agreed with your creditors to the Consumer Proposal Administrator and
2) Attended two credit counselling sessions.
The Consumer Proposal Administrator will generally provide you with a copy of the Certificate of Full Performance by email. They will also send you and your creditors the Final Statement of Receipts and Disbursements, Notice of Taxation of the Administrator’s Accounts and Discharge of the Administrator.
Which Debts Are Discharged When You Receive a Certificate of Full Performance?
A consumer proposal will discharge you from most unsecured debts. Unsecured debts are not attached to assets like a vehicle or house.
The common types of unsecured debts which will be discharged in a consumer proposal include:
Lines of credit;
Tax debts; and
Student loans if more than seven years from the last date of study.
Which Debts Remain After Your Consumer Proposal is Completed?
Unsecured debts which are not discharged from a consumer proposal include:
Child support and spousal support payments;
Joint debtor’s liability – debt remains with other debtor on the joint debt;
Debts arising from fraud;
Court imposed fines and penalties; and
Student loans are less than seven years from the last date of study.
How Does a Certificate of Full Performance Affect Your Credit Report?
Once you receive your Certificate of Full Performance, it also means the Licensed Insolvency Trustee will have provided a copy to the Office of Superintendent of Bankruptcy and will be provided with a copy to the credit bureaus, Transunion and Equifax.
For your credit report, a consumer proposal filing will stay for six years from the date you filed the proposal or three years after completion, whichever comes first. After this period, you can review your credit report to confirm it has been updated correctly. If not, you can provide the credit bureaus with a copy of the Certificate of Full Performance so they can update your records accordingly.
What Should I Do if I Continue to Receive Collection Calls After Completing My Consumer Proposal?
Unfortunately, there are times when you may still receive collection calls after completing your consumer proposal. This can happen because the original creditor may have sold the debt to a third-party collection agency to collect the debt. If this does happen, you should advise them you filed and completed your consumer proposal. You can provide them with a copy of your consumer proposal documents or your Certificate of Full Performance.
If you need more help with these creditors, you can contact your Licensed Insolvency Trustee.
Once you receive your Certificate of Full Performance, you should congratulate yourself on this accomplishment. In your life after a consumer proposal, all your unsecured debts will be discharged, and with no more consumer proposal payments, you will have extra money for your expenses and reach your financial goals.
If you are considering a consumer proposal to reduce your debts, the Litvack Group would be happy to have a Free Consultation to discuss your financial circumstances and review your options. Contact us today!