Filing for bankruptcy in Canada can be a daunting experience, but it can also bring relief, especially when it comes to persistent calls from creditors. But the question often asked is, when will creditors stop calling after I file bankruptcy? Let’s explore this in detail.
The Power of a Stay of Proceedings to Stop Creditors Calling After You Go Bankrupt
When you declare bankruptcy in Canada, you are immediately granted a Stay of Proceedings. This is a protective measure provided by the court. It’s a safeguard that prevents creditors from contacting you, garnishing your wages, seizing your bank accounts, or even accruing interest on your debt.
Note: Filing for bankruptcy doesn’t mean the calls from creditors will stop immediately. There could be a short delay before peace is restored.
The Role of Your Trustee
As soon as you sign your bankruptcy documents with a trustee, you are legally protected from your unsecured creditors. But conveying this information to your creditors might take some time. Legally, your trustee must inform your creditors within 5 days. However, with a firm like Bankruptcy Canada, creditors are notified within a single business day.
Remember, notification does not equate to acknowledgment. Large lending institutions and national banks may need additional time to notify all their departments and any collection agency they might have assigned your debt to.
Dealing with Calls Post-Bankruptcy Filing
Despite immediate court protection and swift notification to your creditors, you might still receive a few calls. If an unsecured creditor calls, follow these four steps to ensure creditors stop calling after you file for bankruptcy:
- Answer the call.
- Let them know about your bankruptcy filing.
- Provide your Trustee’s name and their contact number.
If asked for additional information, inform the caller that you’ve been instructed by your trustee not to discuss the matter and they should contact your trustee directly.
By following these steps, you should stop hearing from your unsecured creditors. However, if a creditor continues with harassing calls, inform your trustee, and they will guide you on the next steps.
In Conclusion
Being constantly pursued by creditors can be stressful. But when you file for bankruptcy, you should eventually get relief from these calls. If you’re already facing collection calls, it’s time to take action. Contact a Bankruptcy Canada trustee today. They can help you stop those collection calls for good.
Remember, bankruptcy is not the end. It’s a fresh start. And with the right guidance from a trusted trustee, you can navigate this process with confidence and peace of mind.
