Do Creditors Still Call After Bankruptcy in Canada? Understanding the Automatic Stay and Your Rights

When you’re overwhelmed by debt, one question often looms large: do creditors still contact you after bankruptcy? In Canada, filing for bankruptcy triggers strong legal protections designed to stop most collection calls, letters, and lawsuits right away. This guide explains how that protection works, where exceptions apply, and exactly what to do if contact continues.

Do creditors still contact you after bankruptcy? The short answer

In most cases, no. As soon as your bankruptcy is filed and accepted, an automatic stay of proceedings takes effect. This stay legally requires most creditors and collection agencies to stop contacting you and to pause any ongoing enforcement actions.

It isn’t unusual to receive a few calls or letters in the first couple of weeks after filing while systems update and creditors verify your case. However, persistent contact beyond that is typically a violation. If it happens, you have clear steps to address it.

How the automatic stay works in Canada

The automatic stay is one of the strongest protections in the Bankruptcy and Insolvency Act (BIA). It starts the moment your Licensed Insolvency Trustee (LIT) files your paperwork and the court accepts it. Collection pressures are intended to stop quickly so you can focus on complying with the bankruptcy process and rebuilding.

What the stay covers

• Phone calls, letters, texts, emails, and in-person collection attempts
• Lawsuits, judgments, and most court actions related to unsecured debts
• Wage garnishments and bank account freezes (including most actions by government agencies)
• Reporting new negative information to credit bureaus related to collection activity

For a deeper explanation of how this protection works in both bankruptcy and consumer proposals, see our guide to the stay of proceedings.

Exceptions to the stay and ongoing contacts

While the stay is broad, it doesn’t cover every situation. Debts that are not discharged by bankruptcy—such as child support, alimony, certain court fines, and debts arising from fraud—may still require payment during and after your bankruptcy. In those cases, the relevant authority may continue to contact you about those obligations.

Student loans have special rules: if your loans are less than seven years old, they are generally not discharged—but collection efforts usually pause during the bankruptcy and can resume after discharge if the debt remains.

Secured debts (like car loans or mortgages) are treated differently. Your lender’s security interest in the asset remains. If you stop payments or break the contract, they can pursue remedies available under provincial laws; this can include repossession or foreclosure. Your LIT will explain your options.

When contact may resume

• After bankruptcy discharge: Creditors of non-dischargeable debts (e.g., support payments) may resume or continue contact.
• If payments stop on secured debts: The lender may contact you regarding repossession steps.
• If the bankruptcy is annulled or dismissed: Collection activities can restart.

For official program details and consumer protections, explore resources from the Office of the Superintendent of Bankruptcy on Canada.ca.

Common scenarios and real-world examples

Collection agency calls

Example: You filed bankruptcy last week, but a collection agency calls about an old credit card. This often happens before they’ve updated their records. Calmly provide your file number, your LIT’s contact information, and state the bankruptcy date. Ask that they stop contacting you and reach out to your LIT if they need verification.

Secured debt and repossession

Example: You’re behind on a car loan and file for bankruptcy. The stay pauses most actions, but the lender can still enforce their security if you don’t keep payments or reach a new arrangement. Your options may include surrendering the vehicle, reaffirming terms, or discussing alternatives like a consumer proposal. Learn more about your rights if you’re worried about losing a vehicle in our guide to repossession and your rights.

Tax and government debts

Example: The Canada Revenue Agency (CRA) placed a wage garnishment before your filing. In most cases, the automatic stay requires CRA to stop garnishment once the bankruptcy is in effect. If garnishment continues, inform your LIT immediately. See our overview of wage garnishment rules in Canada.

What to do if creditors still contact after you file

If you’re still receiving calls or letters after filing—especially beyond the first 10–30 days—take these steps.

Step 1: Notify your Licensed Insolvency Trustee

• Provide details: Dates, times, caller names, phone numbers, and summaries of conversations.
• Share copies: Send photographs or scans of letters, texts, or emails.
• Ask for verification: Your LIT can send formal notice to the creditor or agency and follow up on violations.

Step 2: Document every interaction

• Keep a call log with timestamps and summaries.
• Save voicemails and messages.
• Request that the caller confirm receipt of your bankruptcy file number and your LIT’s contact details.

Step 3: Escalate formally if needed

• Complaint channels: If contact persists, your LIT can advise on escalation. You may be able to file complaints with consumer protection agencies or seek court enforcement.
• Government resources: Use guidance and contacts available via Canada.ca and Employment and Social Development Canada for issues related to support obligations and consumer protections.

Protecting yourself from harassment and errors

Know your rights

• Once the stay is in effect, creditors must stop most contact and enforcement efforts.
• You are entitled to clear communication and support from your LIT throughout your case.
• Provincial consumer protection laws limit aggressive or deceptive collection tactics.

Reduce contact fast

• In every call, provide your bankruptcy file number and your LIT’s contact details.
• Politely state that you are protected by the automatic stay and request that they contact your LIT.
• Ask for written confirmation that they will remove your number from active dial lists.

When to seek legal help

• If a creditor continues calling despite verification, discuss legal options with your LIT.
• For complex situations—such as secured debt disputes—your LIT may recommend speaking with a lawyer.

Creditor actions that can still happen—and how they’re managed

Support payments

Family support obligations (child support and alimony) are typically not discharged. Authorities may maintain contact to ensure payments continue and comply with support enforcement mechanisms. See public guidance on support obligations and benefits from Employment and Social Development Canada.

Actions requiring court permission

Some creditors may seek court permission (leave) to continue certain actions during the stay. Your LIT will advise you if any party requests leave and what it means for you.

Credit report updates

Creditors are generally expected to update accounts to reflect that collection activity has stopped due to the stay. After discharge, most discharged debts should show as closed or included in bankruptcy. If reporting appears inaccurate, your LIT can guide you on disputing entries.

Alternatives to bankruptcy if calls are overwhelming

Bankruptcy is one of several paths to stop collection pressure. For some Canadians, other options can achieve the same relief while protecting assets or reducing costs:

• Consumer proposal: A legally binding settlement with creditors to repay a portion of your debt over time; the stay also applies. Compare options in our complete Canadian guide to bankruptcy vs consumer proposal.
• Debt consolidation: A new loan used to pay off multiple debts and simplify payments. Learn the real pros, cons, and process in Debt Consolidation in Canada: Benefits, Risks, and a Step-by-Step Plan.
• Debt management programs: Structured repayment plans negotiated by credit counsellors. Explore options in our complete guide to debt management solutions.

For a broader view of your options in 2025, see How Debt Relief Works in Canada.

Timeline and what to expect from filing to discharge

Immediate effects

• Your LIT files your case; the automatic stay begins.
• Most collection contact should stop right away.
• Wage garnishments and bank freezes typically lift, including garnishments by government agencies in most situations.

Within the first 30 days

• Residual calls taper off as creditors update records.
• Your LIT confirms notices were sent and responds to any creditor inquiries.
• You complete initial duties, including providing financial information and attending required counselling sessions.

After discharge

• Discharged debts are closed; collection contact must not resume.
• Non-dischargeable debts (e.g., support) continue as usual.
• You can start rebuilding credit. For an overview of typical timelines, see Understanding Bankruptcy Duration in Canada.

To contextualize personal debt trends, review household debt and insolvency statistics via Statistics Canada.

Key rights and responsibilities at a glance

• Your rights: To be free from most collection contact once the stay begins; to have wage garnishments and legal actions paused; to receive guidance from your LIT.
• Your responsibilities: Provide accurate financial information; attend required sessions; keep any necessary payments (such as secured debt payments if you intend to keep the asset); inform your LIT of any continued contact.
• If a creditor violates the stay: Document it and tell your LIT; formal enforcement may be available.

Conclusion

In Canada, the automatic stay that begins when you file for bankruptcy is designed to stop most creditor contact—quickly and decisively. While limited exceptions exist, persistent calls or enforcement attempts are not the norm and can be addressed through clear steps with your Licensed Insolvency Trustee. Understanding how the stay works, where exceptions apply, and the timeline you can expect will help you navigate the process with confidence and focus on your financial recovery.