Collection Activity After Filing Bankruptcy

Navigating Collection Activity Post-Bankruptcy: A Comprehensive Guide
When Will Debt Collectors Stop Calling?

The process of filing for bankruptcy or a consumer proposal can often be overwhelming. One of the primary concerns that individuals have revolves around the cessation of Collection Activity following their filing. This guide aims to provide clarity on this subject, shedding light on when and how creditors will cease their collection activities.

The Impact of Filing Bankruptcy or a Consumer Proposal

When it comes to bankruptcy or consumer proposal, the fundamental principle is that there should be no Collection Activity post-filing. The cessation of collection calls is expected once your creditors have been informed about your filing.

Notifying Creditors: The Crucial Step

Your trustee plays a key role in the process of filing bankruptcy. In the initial five days of filing, your trustee will inform all your creditors about your situation. The common practice is to dispatch a notice of bankruptcy via post. This means, factoring in the time for mailing and delivery, it could take up to two weeks before your creditors receive the notice.

However, it’s important to note that more trustees are resorting to modern communication methods, such as faxing or e-mailing bankruptcy notices. This could potentially expedite the notification process.

Potential Delay Factors

Even if the creditor receives the notice promptly, there may be a delay in updating their system with this information. Until this happens, you may continue to receive collection calls.

Additionally, if a creditor, like a bank or credit card company, has handed over your account to a collection agency, the calls may continue until the agency is notified. Often, the delay in communication between the original creditor and the collection agency can result in prolonged collection activity.

The Reality of Collection Activity Post-Filing

Despite the potential delays, you should be aware that creditors are not allowed to continue their Collection Activity after you’ve filed for bankruptcy or a consumer proposal. In fact, it is illegal for you to make any payment to an unsecured creditor post-bankruptcy.

This is a critical piece of information that creditors are well aware of, and knowing this, it is unlikely for them to continue their collection calls.

Handling Persistent Collection Calls

In the event that creditors or collection agents continue to call, simply inform them about your bankruptcy (or proposal) filing and provide them with your trustee’s contact information. Your trustee will then correspond directly with them and forward all necessary paperwork on your behalf.

Seeking Professional Assistance

For a more comprehensive understanding of Collection Activity post-bankruptcy and the entire bankruptcy process, consider consulting with a Licensed Insolvency Trustee in your vicinity. Their expertise and guidance can prove invaluable in navigating through this complex process.

As you step into the process of bankruptcy or consumer proposal, it is critical to remember that you have the right to a cease in Collection Activity. Understanding this aspect and the potential delays in the process can equip you with the knowledge to handle this situation more effectively.

Remember, as overwhelming as the process may seem, you are not alone. There are resources and professionals available to guide you through every step of the way.


“The only thing more exhausting than being in a bankruptcy process is pretending you’re not.” – Anonymous


With this comprehensive guide, you can navigate the waters of Collection Activity post-bankruptcy with more confidence and ease.

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