How to Stop Dealing With Debt Collectors

How to End Dealings With Debt Collectors

Dealing with debt collectors can be distressing and stressful. However, there are several ways to handle this situation effectively. Below, we discuss strategies for handling debt collectors and how a consumer proposal can make the process easier.

Understanding the Debt Collection Process

First, it’s crucial to comprehend the debt collection process.

Who are Debt Collectors?

In many cases, your original creditor won’t be the one contacting you about overdue payments. After a certain period of non-payment, creditors usually sell the debt to a collection agency. This can potentially work in your favor, as collection agencies are often willing to accept a partial repayment instead of the full amount.

Possibility of Legal Action

The idea of being sued by a collection agency can be intimidating. However, statistics show that only a fraction of consumers are taken to court by collection agencies. However, if your original creditor hasn’t sold your debt, they may be more inclined to take legal action.

Government Debts

Government debts, such as tax debt and federal student loans, are a different ball game. The government generally does not negotiate or accept partial payments unless you file a consumer proposal. However, there are repayment assistance programs available for student loans.

Stopping Debt Collector Calls

In certain provinces like B.C., Alberta, Ontario, Quebec, P.E.I., and Nova Scotia, you can stop debt collector calls. This can be done by properly disputing the debt in writing.

Consumer Proposal: A Viable Solution

One effective way to stop dealing with debt collectors is by filing a consumer proposal.

What is a Consumer Proposal?

A consumer proposal is a legally binding agreement filed with a Licensed Insolvency Trustee. This agreement stops all harassing phone calls and legal action threats from debt collectors.

Pros of Filing a Consumer Proposal


  • A Licensed Insolvency Trustee negotiates with all your creditors, allowing you to only repay a portion of your debt.
  • You do not have to surrender any assets to your creditors.
  • Interest charges halt as soon as the proposal is filed.
  • You make one monthly payment on your debt; no additional fees are required.

Cons of Filing a Consumer Proposal


  • A consumer proposal does not erase all your debts instantly; it can take up to five years to become debt-free.
  • Secured debt (like mortgages) cannot be included in a consumer proposal.
  • A consumer proposal will appear on your credit rating for three years after you’ve paid off your debts–it can affect your credit for six years from the date of your filing.
  • A consumer proposal cannot be filed for debts greater than $250,000.


Despite its cons, a consumer proposal is generally seen as a better alternative to bankruptcy. Most importantly, it enables you to stop dealing with debt collectors and sets you on the path to becoming debt-free. For more information on consumer proposals, consult a Licensed Insolvency Trustee.


Dealing with debt collectors can be a distressing experience, but it’s not something you have to face alone. Tools like consumer proposals can help you manage your situation effectively and regain control of your financial health. It’s always advisable to consult with a professional to understand the best course of action for your specific circumstances. Remember, the journey to becoming debt-free is a marathon, not a sprint. Be patient with yourself, and take one step at a time.

Find Your Personal Debt Relief Solution

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