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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?


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.