You’ve made your last payment. After months or years of steady monthly contributions, your consumer proposal is finished — and you’re wondering what comes next. That feeling of relief is real, and it’s well-earned. A consumer proposal is one of the most disciplined things a person can do when debt has gotten out of hand, and completing it is a genuine achievement.
But “finished” isn’t just a feeling — it triggers a specific legal and administrative process that affects your debts, your credit report, and your financial future. Understanding exactly what happens when a consumer proposal is finished will help you take the right steps at the right time, and avoid unnecessary stress in the weeks that follow.
When your consumer proposal is finished, your Licensed Insolvency Trustee issues a Certificate of Full Performance, which legally discharges all unsecured debts included in the proposal. The Office of the Superintendent of Bankruptcy is notified, your credit bureaus are updated, and you can begin rebuilding your credit immediately.
What “Finished” Actually Means Legally
A consumer proposal is considered complete once you’ve fulfilled every obligation outlined in the agreement. In practical terms, that means two things: you’ve paid the full amount agreed upon with your creditors, and you’ve attended both mandatory credit counselling sessions. Miss either one, and the proposal technically isn’t done — even if all your payments are made.
Under the Bankruptcy and Insolvency Act, once both conditions are met, your Licensed Insolvency Trustee (LIT) — who also served as your Consumer Proposal Administrator — is required to issue you a Certificate of Full Performance. This is the formal legal document that marks the end of your obligations and confirms that the debts in your proposal are discharged. Your legal discharge happens on the date that certificate is issued.
One important note: some debts are not dischargeable in a consumer proposal regardless of completion. These include child and spousal support payments, court-ordered fines, student loans from less than seven years ago, and debts arising from fraud. Everything else — credit cards, lines of credit, personal loans, payday loans, CRA tax debt — is gone.
The Certificate of Full Performance
The Certificate of Full Performance is issued under Form 57 of the Bankruptcy and Insolvency Act. Your trustee will typically send it to you by email, and it’s a document worth keeping permanently — not just for records, but because you may need it if a creditor or collection agency ever contacts you down the road about a debt that should have been discharged.
Along with the certificate, you’ll also receive a Statement of Receipts and Disbursements, and a Notice of Taxation of the Administrator’s Accounts and Discharge of the Administrator. These are the final accounting documents that close out your file. Your trustee sends copies to your creditors and to the Office of the Superintendent of Bankruptcy (OSB). The OSB then notifies the credit bureaus — Equifax and TransUnion — that your proposal has been completed.
This process takes time. Don’t expect your credit report to be updated the same week you finish. From completion to credit bureau update can sometimes take one to two months, depending on the OSB’s current workload. You can speed things along by sending your Certificate of Full Performance directly to Equifax and TransUnion yourself — they’ll update your file faster when they receive documentation directly from you.
What Changes for the Better
The moment the Certificate of Full Performance is issued, creditors no longer have any legal right to collect the debts that were included in your proposal. Those balances are discharged — not deferred, not forgiven conditionally — discharged. You owe nothing more on them.
Whatever you were paying each month toward the proposal — that money is now yours. Many people redirect it straight into savings or an emergency fund, which is exactly the right instinct. After years of mandatory payments, even a modest monthly surplus can build meaningful financial security quickly.
You don’t have to wait for the three-year reporting period to end before you begin working on your credit score. In fact, starting immediately — with a secured credit card, a small loan, or a cell phone contract — is exactly what financial advisors recommend. The sooner you establish a positive payment history, the better.
With no unsecured debt remaining, your financial profile actually looks quite strong to many lenders. You have income, you have no unsecured obligations, and you have a track record of making consistent payments over an extended period. Some lenders view proposal completers as lower risk than people carrying large balances on multiple cards.
Any creditor or collection agency that continues to contact you about debts included in the proposal is violating the law. Your Certificate of Full Performance is the evidence you need to shut that down. Keep a copy accessible at all times during the years following completion.
If you maintained your secured debts — mortgage, car loan — throughout the proposal, those accounts remain in good standing. Many people renew mortgages and obtain vehicle financing during and after their proposals without major issues, particularly if they’ve been keeping up with those payments consistently.
Things to Be Aware Of
Equifax and TransUnion will keep a record of your consumer proposal for three years after the completion date, or six years from the original filing date — whichever comes first. During that window, lenders can see that you completed a proposal. That doesn’t prevent you from accessing credit, but it does mean prime interest rates and large unsecured loans may not be available right away.
From your final payment to the credit bureau update, expect a process that takes weeks or even a couple of months. The OSB has a backlog, and your trustee still has paperwork to complete. Be patient, follow up if needed, and keep copies of everything.
Child support, alimony, fraud-related debts, and recent student loans are not touched by a consumer proposal. If any of these applied to your situation, they’re still owed. Make sure you have a clear picture of what was and wasn’t included.
The proposal being finished doesn’t automatically fix your credit score. That takes deliberate action — applying for a secured card, using it modestly, paying it off each month, and staying consistent for at least a year or two. It doesn’t happen on its own.
Who Needs to Know This
- Canadians who are in the final months of their consumer proposal and want to plan ahead
- Anyone who has just made their last payment and isn’t sure what to do next
- People who completed a proposal years ago but never took steps to rebuild their credit
- Those who received a collection call after finishing and need to know their rights
- Anyone considering a consumer proposal and wants to understand what the end of the road looks like
- You haven’t yet started a consumer proposal — you may want to begin with understanding how proposals work and whether one is right for you
- Your proposal was annulled due to missed payments — the process for reviving or starting over is different
- You filed for bankruptcy instead — the discharge process is handled under separate rules
A Real-Life Financial Example
Here’s a simplified example of what the before-and-after looks like financially when a consumer proposal is completed:
Upon receiving the Certificate of Full Performance, all four creditors listed above lose any legal right to collect the remaining $25,800. It’s gone. The $358 monthly payment that went to the trustee for four years is now free to go into savings, an RRSP, or toward a secured credit card to start rebuilding.
What Happens Step by Step After You Finish
- You make your final payment. This is the moment you’ve been working toward. Keep a record of this payment — a bank statement showing the transfer to your trustee is ideal. Your trustee will note this in their records and begin the closure process.
- Your trustee confirms both credit counselling sessions are complete. If for any reason you haven’t attended both sessions, your proposal cannot be closed. Contact your trustee immediately to arrange any outstanding sessions — this is a legal requirement, not optional paperwork.
- Your trustee issues the Certificate of Full Performance. You’ll typically receive this by email within a few weeks of your final payment and session confirmation. This is Form 57 under the Bankruptcy and Insolvency Act. Your debts are discharged on the date it’s issued.
- Your trustee files documents with the Office of the Superintendent of Bankruptcy. The Final Statement of Receipts and Disbursements is submitted, and the OSB officially records the completion of your file. Your creditors are notified at this stage as well.
- The OSB notifies Equifax and TransUnion. This is typically handled by the government agency, not by your trustee directly. It can take several weeks. Your credit report will be updated to reflect that the proposal was completed.
- You send your Certificate of Full Performance directly to the credit bureaus. You don’t have to wait for the OSB notification. Contact Equifax and TransUnion directly, provide a copy of the certificate, and request that they update your file. This often speeds up the process by weeks.
- You start rebuilding your credit. Apply for a secured credit card with a small limit — $500 is plenty. Use it for one regular purchase per month, pay it off in full before the due date, and repeat. This establishes a positive payment history, which is the main factor in rebuilding your score after a consumer proposal.
- Review your credit reports at the three-year mark. Three years after the completion date, the consumer proposal notation should be removed from your credit report. Check both Equifax and TransUnion to confirm this has happened. If it hasn’t, contact them with your Certificate of Full Performance. You’re entitled to a clean report.
For a broader look at how consumer proposals compare to other debt relief options, the bankruptcy vs. consumer proposal guide explains the key differences, particularly around credit impact and timeline. And if you’re focused on what comes next, credit repair guidance for Canadians can help you understand what’s realistic and what timeline to expect.
According to BDO Debt Solutions, consumer proposals now handle over 79% of consumer insolvencies in Canada — and most people who complete them are able to access credit within a few years of finishing, including mortgages and car loans. The key is starting the rebuilding process early and staying consistent. If you’re earlier in the process and still exploring your options, the Canadian debt relief guide is a good starting point.
Still working toward your last payment — or wondering if a consumer proposal is the right path?
Frequently Asked Questions
How long does it take to get my Certificate of Full Performance after my last payment?
In most cases, your Licensed Insolvency Trustee will issue the Certificate of Full Performance within a few weeks of your final payment, provided both mandatory credit counselling sessions are also complete. The exact timing depends on your trustee’s workload and administrative processes. After the certificate is issued, the Office of the Superintendent of Bankruptcy typically takes a few additional weeks to notify Equifax and TransUnion. If you want to speed up the credit bureau update, you can send a copy of your certificate directly to Equifax and TransUnion yourself — you don’t have to wait for the government notification to arrive on its own.
How long does a completed consumer proposal stay on my credit report?
A consumer proposal stays on your credit report for three years after the completion date, or six years from the original filing date — whichever comes first. If you filed your proposal and completed it within three years, the six-year clock from filing may apply, meaning the record could stay slightly longer. In most cases where proposals run three to five years, the three-year post-completion rule is the relevant one. At the end of that period, the notation should be removed automatically. Check your credit report at the three-year mark, and if it’s still showing, submit your Certificate of Full Performance to both Equifax and TransUnion to request the update.
Can I get a mortgage or car loan after completing a consumer proposal?
Yes — many Canadians obtain mortgages and car loans after completing a consumer proposal, though the terms and timing vary. If you maintained your mortgage payments throughout the proposal period, your lender will typically allow a renewal without issue. For new mortgages, most borrowers find that a two-year window of positive credit rebuilding after completion — using a secured card, keeping balances low, making payments on time — puts them in a reasonable position to qualify. Car loans through dealership financing are often more accessible sooner. The key factors lenders look at are your current income, your payment history since completing the proposal, and your current debt load. Having no unsecured debt actually works in your favour here.
What if I still get collection calls after my consumer proposal is finished?
This does happen, and it’s frustrating — but it’s also straightforward to handle. Sometimes the original creditor sold your account to a third-party collection agency that wasn’t notified of your consumer proposal completion. When you receive a call, stay calm and advise the caller that the debt was legally discharged under a completed consumer proposal. Offer to send them a copy of your Certificate of Full Performance as proof. Keep a log of dates, times, and the names of anyone who contacts you. If they continue calling after you’ve provided documentation, they’re potentially violating the law, and you can follow up with your trustee or a provincial consumer protection authority. You don’t owe anything on discharged debts, full stop.
What’s the best way to rebuild my credit after a consumer proposal is finished?
The most effective approach is simple and consistent: get a secured credit card as soon as possible after completion, use it lightly (keep your balance below 30% of the limit), and pay the full balance before the due date every single month. This builds a positive payment history, which is the single most important factor in your credit score. A cell phone contract on a monthly plan can also contribute positively to your credit file. After six to twelve months of this, you’ll often be eligible for a low-limit unsecured card, which further diversifies your credit profile. Avoid applying for multiple products at once — each application creates a hard inquiry that temporarily dips your score. Patience and consistency matter more than any shortcut. For a more detailed look at what’s possible, credit repair services in Canada can walk you through a tailored strategy based on your situation.
After 20 years of structuring multi-million dollar corporate debt facilities and corporate turnarounds in investment banking, Marcus now leads Canadian Debt Relief to apply those exact same balance-sheet optimization frameworks to Canadian household debt.
