Early Payment & Discharge - Consumer Proposal: Ontario Personal Bankruptcy Blog

Posted on Tuesday, August 15, 2006

I filed a consumer proposal 1 year ago and currently pay $500 per month for 36 months. My financial situation is better now than it was a year ago because I got a better job and received a small inheritance from my parents recently. I want to repair my credit early so I'm thinking of paying the remaining amount in full to the Trustee (i.e. pay in full the remaining 24 months intallments). Also, I want to apply for a credit card soon because I find it inconvenient sometimes without credit card especially when travelling. My questions are:

1. Will I be discharged right away after making the full payment even before the expiration of the 36 months term of the consumer proposal?

2. Who will issue my discharge papers (the court or the trustee)?

3. Can the creditors ask for more or additional payments if they learn that my financial situation has improved & that I have made a pre-payment of the consumer proposal?

4. Once I'm discharged from my debts, who long will it take to reflect my discharge on my credit report from the time of discharge?

Thank you.

1 Comments:

At 8:54 AM, J. Douglas Hoyes, CA, Trustee said…

One of the big advantages of a consumer proposal is that you can pay it off early. Once you have paid the total amount owing, you will receive a Certificate of Completion from the proposal administrator, and your debts are discharged. The creditors cannot ask for additional payments (unless you lied about your income originally). It normally takes two or three months for the completion of the proposal to be reflected on your credit report, depending on how quickly the administrator processes the final paperwork. The note saying that you filed a consumer proposal will remain on your Equifax credit report for three years following the completion of the proposal.