Certificate of Full Performance
A Certificate of Full Performance is an official document issued within the context of a consumer proposal under the Bankruptcy and Insolvency Act. It confirms that the debtor has met all the obligations set out in the consumer proposal. Here are some key points about this certificate:
- Certificate Issuance: Once all the conditions of the consumer proposal have been met by the debtor (that is, all payments have been made according to the terms of the proposal), the Licensed Insolvency Trustee (LIT) prepares and provides the Certificate of Full Performance to the debtor.
- Legal Implications: Upon receiving this certificate, the debtor is legally discharged from all the debts that were included in the proposal, except those specifically exempted by law or by agreement.
- Impact on Credit: Even if the debtor is legally discharged from their debts after receiving the Certificate of Full Performance, it doesn’t necessarily mean that their credit report is immediately “cleaned”. The consumer proposal may remain on the credit report for 3 years thereafter.
- Certificate’s Importance: This certificate is proof that the debtor has met all the obligations of the consumer proposal. It can be used as evidence if creditors try to collect debts that were included and settled in the proposal.
It is important to keep this certificate in a safe place, as it is the official proof that the debtor has upheld their commitments and is now released from their debts under the consumer proposal.