Myth: If you file a consumer proposal your creditors will continue collection action.
Fact: When you file a consumer proposal all creditor collection action is stopped immediately.
Myth: Filing personal bankruptcy or a consumer proposal will not stop collection agencies from calling.
Fact: Filing personal bankruptcy or a consumer proposal immediately stops all collection agency calls.
Myth: Any creditor that does not accept your consumer proposal will be free to resume collection activity.
Fact: Your consumer proposal applies to all creditors regardless of how they have voted. If the majority of creditors (51% by dollar value) vote in favour of your consumer proposal then your consumer proposal is binding on all your creditors.
Myth: Filing personal bankruptcy or a consumer proposal will not stop creditors from garnishing your wages. Learn about Wage Garnishment.
Fact: Filing personal bankruptcy or a consumer proposal immediately stops the collection agency from taking any legal action against you. This includes wage garnishments even if the creditor has started legal proceedings, has a court order or has already started to deduct from your wages.
If you have more questions regarding collection agencies, contact our office for answers.