Finishing a consumer proposal is a major financial reset.

Once your final payment is made, your remaining debt is legally erased, collections stop permanently, and you receive official documents confirming your completion. Most people feel a huge sense of relief as they begin rebuilding credit, planning their future, and enjoying real financial stability for the first time in years.

This page explains everything that happens after your consumer proposal is completed and what your next steps should be.

When your final proposal payment is processed, all included debt is officially discharged. This means you are no longer responsible for:

• Credit card balances, which are wiped out entirely so you can move forward without revolving debt dragging you down.
• CRA tax debt, which becomes legally forgiven, including years of compounded interest and penalties.
• Payday loans, which cannot restart collections or pursue you after the discharge.
• Personal loans, which are permanently closed and cannot be reopened by the lender.
• Lines of credit, which show as settled so your credit report becomes cleaner and more stable.

The discharge is permanent. Creditors cannot contact you, reopen accounts, add interest, or take any legal action once the proposal is complete.

Certificate of Full Performance

After completion, your Licensed Insolvency Trustee issues a Certificate of Full Performance. This certificate:

• Confirms that every payment has been made, showing you successfully completed the proposal.
• Requires creditors to close their files, preventing any future collection attempts.
• Serves as legal proof, which protects you if any creditor mistakenly contacts you later.
• Helps with future credit applications, since some lenders ask to see confirmation that the proposal is fully completed.

You should keep this certificate permanently in both digital and paper form.

Collections and Legal Action End

Once your proposal is completed, all collection activity must stop. Creditors cannot restart:

• Wage garnishments, because the debt is officially settled and cannot be collected.
• Collection calls or letters, as they are prohibited from contacting you once the proposal is finalized.
• Lawsuits or judgments, since the proposal legally resolves the debt.
• Interest or penalty charges, which cannot be added back at any time in the future.

If a creditor contacts you by mistake, your completion certificate resolves the issue immediately.

Your Credit Report Is Updated

Credit bureaus update your file to show the proposal as completed. This update helps your score because:

• Your balances drop to zero, improving your credit utilization instantly.
• The R7 rating becomes less important, giving new positive credit habits more influence.
• Your overall debt load disappears, making you less risky in the eyes of lenders.
• Your financial profile becomes healthier, helping you qualify for new credit sooner.

Most people see steady progress in the months and years following completion.

Start Rebuilding Credit Immediately

You do not need to wait until the R7 rating disappears to start rebuilding. Most people begin right away by using:

• A secured credit card, which adds positive payment history each month.
• A small traditional credit card, often available several months after completion.
• On-time bill payments, which strengthen your credit score over time.
• Low credit utilization, keeping balances under 30% to show responsible use.
• A simple monthly budget, which helps prevent falling back into old debt habits.

These steps help your score rise steadily while you enjoy a fresh financial start.

You Can Qualify for Loans & Mortgages

Many lenders work with people who have completed a proposal. You may qualify for:

• Car loans, especially from lenders familiar with post-proposal financing.
• Consolidation loans, which can help build credit by showing consistent repayment.
• Credit cards, both secured and unsecured as your score improves.
• Mortgages, especially after a few years of stable payments and steady income.

Your fresh start makes lenders more willing to consider you compared to when your debt was overwhelming.

Financial Stress Drops Dramatically

Completing a consumer proposal brings a major emotional and financial reset. People often experience:

• Fewer financial emergencies, because high-interest debt is no longer draining their income.
• More savings each month, thanks to reduced monthly obligations.
• Better sleep and reduced anxiety, knowing their debt is permanently resolved.
• A stronger household budget, because expenses become predictable and manageable.

The ability to plan for the future, including savings, investing, and mortgage goals. This stability is one of the most meaningful benefits of reaching the end of a consumer proposal.

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