Yes, they will! By law, collection action against you must cease once your Consumer Proposal has been filed.
A Consumer Proposal provides a stay of proceedings, which means that, by law, your creditors can no longer contact you for payment. All collection actions against you must cease once official Consumer Proposal documents are filed. Consumer Proposals trigger a “freeze” on your debts and stop interest charges, collection calls and letters, wage seizures and bank account freezes.
If you have a mortgage or vehicle loan that you are opting to continue with, these payments or contact from your creditors about these accounts will continue.
Watch our short video about how Consumer Proposals in BC impact mortgages and vehicle loans.
Some types of debts (like those to Family Maintenance Enforcement for child and/or spousal support) may not be extinguished by filing a Consumer Proposal, and the stay of proceedings will not apply.