It happens that people at times get behind in paying their debts. This is often just temporary. For example, a person can lose a job but then in about a month get a new job at the same or better salary.
Creditors are quick to follow up when debts are not paid on time. They can phone you at home.
Communicating With Your Creditors and Collection Agencies. How to handle Collection Calls.
If a collector calls you the first rule is to be polite. Get his name and the agency he works for and for whom he is collecting the debt. Explain your predicament saying it is just temporary.
Communicating With Your Creditors and Collection Agencies. Debt collection rules.
Debt collectors are not allowed to:
- Make a charge or threat that has nothing to do with the collection of the debt;
- Make abusive calls in which they lose their temper and use profanity or other verbal abuse;
- Talk to your employer without your permission, unless it’s to confirm your employment;
- Talk to you, your family or your employer in a way that will humiliate or distress anyone.
- Make frequent calls that constitute harassment. Unless you provide the reason, a collector should NEVER call you more than once a day. Reasonable collection practices should not require that the collector call you more than once a week or every second week in order to determine if your financial situation has changed;
- Give you a document that is made to look like an official court document when it isn’t.
Communicating With Your Creditors and Collection Agencies. What if your financial situation is not temporary but more permanent?
If your financial situation is more permanent than temporary you should make a FREE appointment with a local Licensed Insolvency Trustee.
The trustee will review your financial information and explain how a bankruptcy or consumer proposal works.
One of the most power features of a bankruptcy and a consumer proposal is the Stay of Proceedings.
Once a bankruptcy or Consumer proposal is filed the Stay of Proceedings is activated.
This prevents unsecured creditors from collecting their debt, stops collection calls and stops interest from accruing.
The Stay will also prevent a wage garnishee or if one is in place the Stay will cancel the garnishee.
If you have any questions about this or other aspects of bankruptcy or consumer proposals you can set up a FREE consultation with our trustees, who are in every province and territory in Canada.
You can call 1-877-879-4770, 24/7, to book a Free Consultation with a licensed Trustee.