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How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

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Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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Surviving Creditor

I recently paid off a Consumer Proposal which had a creditor that will survive (that being for a student loan which is now over 10 years old). I was wondering how long it usually takes before they receive their final dividend and start calling me to collect the rest.

I paid off the proposal on March 13, which was 18 months early. How long does it take to receive my Certificate of Full Performance?

Thanks

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One Response to “Surviving Creditor”

A licensed trustee said...

Most trustees process the final dividend as quickly as they are able – after all, it is when the trustee gets paid and allows them to close your file.

I suggest that instead of waiting for the trustee, you contact the financial institution that handled your student debt immediately to make payment arrangements. They may tell you they have to wait for the documents before they may “take” any of your money, but it makes more sense to get everything ready to go as soon as you are able. Some banks (such as Scotia) are quite co-operative. Others (CIBC comes to mind) seem to have great difficulty re-instating payment plans.

Are you aware that if your student loans are now 10 years old you may apply to the Court to have them retro-actively discharged by your proposal? This is something that you may want to call your trustee about.