Will Consumer Proposals in Oshawa Stop Collection Calls?

Consumer proposals in Oshawa are one of the most popular solutions for debt relief, and are used in many cases as an alternative to bankruptcy. It does offer many benefits to those drowning in debt, and there is probably one benefit that debtors find the most appealing -- that collection companies and creditors can no longer contact them for payment.

Receiving collection calls can no doubt be very upsetting. In fact, it’s not unheard of for people who owe money to receive five to ten calls from a collector in a single day. It can be especially stressful if the calls are made at your place of employment and bill collectors become a little too aggressive and ask to speak to a receptionist, your fellow employee, or your supervisor. It can harm your reputation in the workplace, and in some instances, even lead to the possibility of losing your job.

Collection agents can call you anywhere they possibly can, on your cell phone or on your landline at home and even use robocalls to send automated messages just to make sure they contact you directly. They’ll speak to anyone, your spouse, your children, your friends, acquaintances and other family members. Nothing can stop them from getting a hold of you, and they have every right to collect their money. If you owe them money, it’s well within their job to call, send letters, and even bring you to court.

The simple act of filing a consumer proposal can stop these collection calls.

When you file for a consumer proposal or a personal bankruptcy the law automatically creates something called a “Notice of Stay of Proceedings.” This stay is, very simply, a legal order that will stop your creditors from contacting you.

Within two business days of filing for personal bankruptcy or a consumer proposal, your Licensed Insolvency Trustee will receive a Certificate of Authority issued by the Bankruptcy Court. Along with the issuance of the Certificate of Authority,  the Notice Of Stay Of Proceedings is also sent out to all your unsecured creditors, employers and the courts informing them of the stay. The stay immediately puts into effect the requirement to stop any and all lawsuits and collection activities against you in connection with your unsecured debts. This will include:

• Stop wage garnishments
• End all collection calls
• Stop all threats of legal actions
• Stop all court proceedings related to your debt that are included in the consumer proposal or bankruptcy
• Stop any lawsuits and judgments against you

It is important to note that the stay of proceedings only applies to all unsecured debts that are included in the consumer proposal. These debts may be:

• credit cards debt
• unsecured lines of credit
• bank account overdrafts
• unsecured bank loans
• payday loans
• income taxes

Some debts cannot be included in the consumer proposal and the Stay of Proceedings will not stop any actions relating to them. Debts that cannot be included in a consumer proposal or bankruptcy may include:

• secured debts, like your mortgage or car payments
• alimony payments
• child support payments
• debts incurred from fraud
• court ordered fines

The automatic stay of proceedings remains in place until:

• Your consumer proposal is rejected by your creditors
• You complete your consumer proposal
• When you obtain a discharge from your bankruptcy

Stopping collection calls through the Stay of Proceedings is often a major advantage of filing for consumer proposals in Oshawa. Make sure you consult with a Licensed Insolvency Trustee to learn more about the Automatic Stay of Proceedings and if a consumer proposal is the best solution for your debt problems.