Understanding the Meaning of a Certificate of Full Performance of Proposal
When you find yourself overwhelmed by debts, a consumer proposal can offer a viable way out. But what happens when you have completed all the requirements of your proposal? What Does a Certificate of Full Performance of Proposal Mean? This article provides an in-depth look at what this certificate signifies and its implications on your financial life.
The Journey to Obtaining a Certificate of Full Performance of Proposal
The road to acquiring a Certificate of Full Performance is not a short one. It starts with filing a consumer proposal, which must be accepted by your creditors and approved by the court. Following this, you are required to attend two compulsory financial counselling sessions and adhere to the terms outlined in your consumer proposal, including making regular monthly payments.
Upon fulfilling these obligations, a Certificate of Full Performance is issued to you. This certificate marks the final phase of the consumer proposal process.
Deciphering the Certificate of Full Performance
The Certificate of Full Performance is a legal document that signifies your release from the debts you owe. It’s issued by your Consumer Proposal Administrator, also known as a licensed insolvency trustee, after you have completed your last proposal payment and attended two credit counselling sessions. This document serves as evidence that you have met the conditions of your consumer proposal and your debts have been discharged.
Upon the completion of your consumer proposal, you will also receive several other documents. These include a Statement of Receipts and Disbursements, a Notice of Taxation of the Administrator’s Accounts, and the Discharge of the Administrator. These documents are sent to you, your creditors, and the Official Receiver when the administrator closes your file.
What Debts Are Released Upon Receipt of the Certificate of Full Performance?
With the completion of a consumer proposal, you are released from the majority of your unsecured debt. An unsecured creditor is a creditor who does not have a direct claim on any of your assets, like a vehicle or house. If an unsecured creditor has an execution or judgment against an asset, these can generally be removed once you complete your consumer proposal.
Common unsecured creditors that are dealt with in your consumer proposal include:
- Credit card debts.
- Unsecured bank loans or lines of credit.
- Payday loans.
- Government guaranteed student loan debt older than seven years from your end of study date.
- Most tax debts unless the government already has a lien registered against your property.
However, it’s important to note that certain types of unsecured creditors cannot be eliminated in your consumer proposal. These include joint debtor’s liability, spousal or child support payments, alimony, debts resulting from fraud, any court-imposed fines and penalties, and student loans if your end of study date is less than seven years from the date you filed your consumer proposal.
Debts That Remain After the Completion of Your Proposal
Even after your Certificate of Full Performance has been issued and the Administrator has been discharged, there are certain debts you will still be required to pay. These include outstanding debts resulting from fraud, fines or penalties, and restitution orders. Additionally, obligations to pay spousal support, child support, or alimony are not stayed by filing a consumer proposal. This means that if you have the obligation to pay these support payments, you must continue to do so.
As for student loan debt incurred less than seven years from the date you filed your consumer proposal, you would likely have discussed this with your Licensed Insolvency Trustee and were either making interest-only payments or modest payments during your consumer proposal. Once your proposal is completed, you can start making larger payments to your student loans to expedite the process of eliminating this debt.
The Impact of a Certificate of Full Performance on Your Credit Report
The Office of the Superintendent of Bankruptcy reports the date of completion of your proposal to the credit bureaus. A consumer proposal filing stays on your creditor bureau for six years from the date you filed your proposal or three years from the date of completion of your proposal, whichever comes first.
After your consumer proposal is completed, it is recommended that you follow up with the credit bureaus, TransUnion and Equifax, to ensure that your proposal completion is reflected in your credit report. If it does not show properly, you are advised to fill out the credit bureau’s dispute credit report form and provide them with a copy of your Certificate of Full Performance so they can make the necessary update to your record.
Dealing with Collection Calls After Completing Your Consumer Proposal
In some cases, a debt that was included in your consumer proposal might be sold to a third-party collection agency. This can occur even if you completed the consumer proposal many years ago. If you receive a call from a collection agency at any time after you have filed your consumer proposal, inform them that you have filed a proposal. You should also provide them a copy of either your consumer proposal documents or your Certificate of Full Performance as proof.
Remember, you can always rely on your Licensed Insolvency Trustee for support with any issues concerning the consumer proposal process. They are there to assist you.
In conclusion, a Certificate of Full Performance of Proposal signifies that you have successfully completed the terms of your consumer proposal and have been legally released from your debts. It’s a sign of a fresh financial start, and a stepping stone to rebuilding your credit and financial health. Now that you know what a Certificate of Full Performance of Proposal means, you can navigate your consumer proposal process with more confidence and understanding.