Collection agents are calling me at home and at work- what can I do?
Getting calls from collection agents is often very stressful. They seem to call at all hours of the day and night, and they keep calling even after you tell them you can’t pay. What can you do?
First, don’t take it personally. They are just doing their job. Many collection agents earn a commission for collecting debts, so they will keep calling to earn their commission.
Next, if you owe the money and you can pay the debt, pay it. Once the debt is paid, the collection agents will stop calling. If you can’t pay the full amount owing immediately, work out payment terms. If you owe $1,000 and can afford to pay $200 per month, offer to pay $200 per month over the next five months. The collection agent would like to collect all of the money today, but in most cases if you are paying something towards the debt they will accept the payment plan.
NOTE: Never make a commitment that you can’t fulfill. If you can only afford $150 per month, don’t offer to pay $200 per month, since that will only aggravate the situation.
Third, if you can raise part of the money, offer to make a settlement. For example, if you owe $4,000, the collection agent may be willing to accept $2,000 as full and final settlement, but only if you can come up with the money quickly. That probably means you will need to get a debt consolidation loan or borrow from friends or family to pay them off immediately.
If you can’t pay them, your next option would be to file a consumer proposal. With a consumer proposal a settlement plan is filed, and the collection agents are required to immediately stop calling you while the plan is considered.
If you can’t afford to file a consumer proposal, the final option is to declare personal bankruptcy in Ontario. Personal bankruptcy immediately stops collection calls, wage garnishments, and court action.
It’s important to understand that collection agencies are calling because you owe money. They will only stop calling when you have paid them, or filed a legal procedure such as a consumer proposal or bankruptcy to prevent them from collecting.
A member of our bankruptcy Ontario team will be pleased to explain more about how to stop collection agents from calling. The first consultation is confidential and always free of charge. Contact a nearby expert today!