Filing Bankruptcy: When Will Creditors Stop Calling?

If you’ve ever found yourself entangled in a sea of debts, you might have considered filing bankruptcy. After this drastic financial decision, when will those persistent creditors stop calling? Let’s explore the ins and outs of this process.

Understanding Bankruptcy and Consumer Proposal

When you can’t repay your debts fully, you can either file for bankruptcy or propose a consumer proposal.

  • Bankruptcy is a legal procedure where you declare yourself or your business unable to pay off the debts.
  • A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT).

You can learn in depth about consumer proposal and bankruptcy in Canada.

The Role of a Trustee

Upon filing bankruptcy, a trustee will be assigned to your case. They are the individual or corporation appointed to take charge of your bankruptcy case. The trustee will notify your creditors about your bankruptcy or proposal within five days of your filing.

However, it may take a week or two for your creditors to actually be aware of your bankruptcy, depending on the trustee’s method of communication and the speed of the mailing system.

Modern Communication Methods

In the past, most bankruptcy notices were mailed to creditors. However, times have changed. Today, many trustees are resorting to faxing or even emailing bankruptcy notices to creditors. This has significantly reduced the time it takes for creditors to be informed about a client’s bankruptcy.

When Will Creditors Stop Calling?

After a creditor has been informed about your bankruptcy, they will not immediately cease their collection activities. They first need to enter the bankruptcy into their system. Until they do, calls may continue.

If a creditor like a bank or credit card company has turned your account over to a collection agency, there may be a delay in the agency getting notified about your bankruptcy, and the calls might persist.

However, the truth of the matter is, you don’t need to worry. Creditors can undertake no collection activity after filing bankruptcy or a consumer proposal.

“In fact, you are not allowed to pay an unsecured creditor after you go bankrupt, and knowing this the creditors will stop calling you simply because behaving differently makes no sense.”

What to Do When Creditors Call?

If you still receive calls from either creditors or collection agents after filing bankruptcy, advise them that you have filed bankruptcy (or a proposal) and give them the name and phone number of your trustee. Your trustee will then communicate directly with them and forward the necessary paperwork.


Filing bankruptcy or a consumer proposal is a significant decision that can have long-lasting effects on your financial situation. However, it can provide much-needed relief from relentless creditors and allow you to start afresh. If you’re contemplating this step or need more information about when creditors stop calling after filing bankruptcy, it’s advisable to contact a personal Licensed Insolvency Trustee in your area.

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