The Stress of Avoiding Collections Agencies - Bankruptcy and Credit Counselling St. John's | S.R Stack Skip to content

“Honey, Don’t Answer the Phone”

If you experience a sense of dread when your phone rings because it is probably a creditor then you should know that you are not alone and that there are ways to get the calls to stop.

If you have ever had a collection agency call you about an overdue account then you can probably relate to the headline. The sense of dread whenever your phone rings because it is just as likely to be an aggressive collection agent as it is to be your loved one or friend.

You know why they are calling; you know that the account is overdue; if you had the money you would happily pay it.

If only the agent on the other end would listen as you explain that you are doing your best.

If only there was a way to get the calls to stop.

Fortunately, there are ways to get the calls to stop and these include; debt consolidation, debt management, consumer proposal and bankruptcy.

Depending on your situation you might be in a position to consolidate your debts into one, more manageable, payment through a consolidation loan or refinancing at your bank. You might also be able to negotiate with your creditors with the help of a not-for-profit credit counselling agency.

Sometime, however, the creditors won’t negotiate or you just are not in a position to be able to refinance. This is when the services of a licensed Trustee in Bankruptcy can help.

A Trustee in Bankruptcy is the only one who can file a consumer proposal or an assignment in bankruptcy. A consumer proposal is an alternative to bankruptcy where a proposal is made to the creditors and, as long as the majority vote in favour of the proposal, even the ones that vote against it are bound by the terms of the proposal – this is a very powerful tool.

Both of these options provide relief in the form of a ‘Stay of Proceedings’ also known as protection under the Bankruptcy and Insolvency Act. What this means is that once the proposal or bankruptcy is filed with a Trustee in Bankruptcy, the creditors are no longer allowed to contact you about your account or to seek payment.

Often, even within a week of filing, there is a noticeable difference in those who have filed a proposal or bankruptcy because the burden of the unpaid bills and the fear of the calls from creditors has been lifted.

If you relate to this article maybe you should speak to a licensed Trustee in Bankruptcy for a free consultation on what solution is right for you.

Look forward to answering your phone again.

Sean Stack is a licensed trustee in bankruptcy with S.R. Stack & Company Ltd. and can be reached at 709-221-5500 or sean@srstack.caContact Sean today.

Did You Know?


Many people who file for bankruptcy get to stay in their home.


In Newfoundland and Labrador, you can keep your RRSPs – even if you file for bankruptcy.


Many people who file for bankruptcy are able to keep their vehicle.


Most bankruptcies are NOT published in the newspaper.


Student loans can be included in a bankruptcy if they are more than seven (7) years old.


A consumer proposal is an alternative to bankruptcy that can only be filed with a licensed trustee in bankruptcy.


In NL, people ages 30 to 39 years old file for bankruptcy more than any other age group. [source]