Collection calls can be very troubling for many that are having issues paying their debts. Once you file for bankruptcy or file a consumer proposal, the collection calls will stop!
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If you choose to file for bankruptcy or a consumer proposal your creditors will be notified, within 5 days by your Trustee. This is typically done via mail, email or fax.
Once you file for bankruptcy or proposal, collection agencies & creditors will not be able to continue or start any collection action. All communications will be dealt with through your bankruptcy or proposal. All creditors will be required to follow the appropriate steps.
If you have filed for bankruptcy or a proposal and you are still receiving collection calls, simply let them know that you have filed, and that notice has been sent to them by your Licensed Insolvency Trustee. You can also opt to let your Licensed Insolvency trustee know so they can make sure the notice has been sent.
There are very strict rules about what debt collectors in Ontario are allowed to do, but if you’ve ever had bills or debts go-to collection, you know that not all debt collectors play fair.
Collectors are either hired to collect a debt on behalf of a company or business that hired them, or they may buy the debt outright and collect on their own behalf. Before a company or business assigns or sells a debt to a collection agency, they will usually have tried to collect themselves. For example, a dentist may try to collect their outstanding fees but after three months, they may seek the assistance of a collection agency. Even when the collectors follow the rules, the letters and calls are stressful and disruptive to you, your family, and your employer.
In one case, recently handled at David Sklar & Associates, debt collectors nearly jeopardized our client’s attempts to get back on track. In this case, Paul (not his real name) was earning $85,000 as a computer hardware engineer and supporting his wife and three children in Toronto when the company closed down.
Highly specialized and in an industry with a surplus of similarly-qualified professionals, it took Paul two years to find a new job, during which time the family borrowed heavily, even while Paul’s wife Nancy worked a part-time job. When Paul finally did get back to work, his credit card bills had gone into collection – and they started calling the office.
The calls were so frequent (the family had maxed out 6 different credit cards) that Paul worried they would affect his job performance and cost him his new job – until he filed for a consumer proposal.
If you find yourself in a similar situation, you can get relief by calling David Sklar & Associates. As soon as you file for a consumer proposal, collectors must stop contacting you. Long before a final agreement to settle your debts is made, you can get relief from collectors. Debt collectors can cause a lot of stress, but we can provide fast relief.
It’s not just relief from debt collectors that a consumer proposal offers. It will also put a stop to legal action against you such as a frozen bank account or wage garnishment.
If you’re having a difficult time dealing with collection agencies, contact our office today for a free initial consultation and see what your options are. Make the best financial decision for yourself and get out of debt.
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