Are you Receiving Collection Calls from Creditors?
Being in debt and having difficulty repaying your debt can be stressful. You probably find yourself worrying about how you will make ends meet and stressing out about upcoming bills. Calls from creditors and collection agencies or the potential threat of legal action from creditors can make this situation even more difficult to deal with.
In some cases, calls from creditors or collection agencies can even be rude or harassing. If you are receiving such calls, you might feel as though there is no way to make them stop. However, there are ways to stop collection agency calls and legal action (learn more about what collection agencies can and can’t do).
Obviously, if the debt that creditors are calling about is yours and is legitimate, the easiest way to stop calls from a collection agency is to pay the debt in full. You may be able to work out a payment schedule with the creditor or collection agency, depending on your situation. If you do manage to pay the debt in question, make sure that you get a receipt from any payments that you make.
However, if you find yourself unable to meet your financial obligation and pay your debt, there are likely still options available to you. Filing for personal bankruptcy or submitting a consumer proposal could make sense for your particular situation. Speaking with a Licensed Insolvency Trustee can help you determine if these processes are the right course of action for you.
About Bankruptcy and Consumer Proposal
Both bankruptcy and consumer proposal are legal processes that are designed to help those who are having difficulty paying their debts as they become due. These legal processes can only be filled by a Licensed Insolvency Trustee (who is also a Proposal Administrator in the case of a consumer proposal).
What is Bankruptcy?
Bankruptcy is a process that allows you to eliminate most, if not all, of your debts and get a fresh start. When you file for bankruptcy, the trustee handling your situation will ensure that you are able to keep assets that are considered exempt and also make sure that the legal process is carried out fairly for everyone involved.
What is a Consumer Proposal?
A consumer proposal is also a legal process. In a consumer proposal, you make an offer to your creditors to repay them on terms that you can afford. In most cases, this means paying a portion of the debt owed in monthly payments for a specific period of time. Essentially, a consumer proposal reduces the amount that you are expected to repay.
If you decide to proceed with a consumer proposal, the offer will be sent to all of your creditors for review. If the majority choose to accept the proposal, then all are bound by its terms.
How Bankruptcy or Consumer Proposal Put an End to Collection Calls
As mentioned, both bankruptcy and consumer proposal are legal processes. Once these processes have been filed, you receive specific legal protection. For instance, when you file a consumer proposal or bankruptcy, your creditors are no longer able to contact you directly about your debt. They are also not allowed to have collection agencies call on their behalf. All communication with your creditors will be handled by the Licensed Insolvency Trustee or Proposal Administrator. In short, this means an end to calls from creditors and collection agencies.
In general, you are also protected from civil legal action that is designed to collect debt owed to your creditors. Any such legal action that has already started must stop and no new legal action may start. It is important to note that the consumer proposal or bankruptcy processes do not stop legal action that is related to spousal support or child support.
If you are dealing with calls from creditors or collection agencies or if you are faced with civil legal action regarding debt, a consumer proposal or bankruptcy filing could be options to consider. Speaking with a Licensed Insolvency Trustee can help you understand all of the options available and allow you to make an informed choice regarding your financial future. By meeting with a trustee, you can potentially put a stop to creditors’ calls, collection agency calls and civil legal action designed to collect debt.