Can my creditors take legal action to recover their debts such as seizing property or garnishing wages while a proposal is pending?
We have found in the past that debtors who try to negotiate on their own debts through Informal Proposals don’t always understand the process and in many cases find that although they thought they had settled their debts now owe the unpaid balance. There is no guarantee that a creditor will not pursue legal action against a debtor while in negotiations but this process is very rare. In most cases the creditors will work through the negotiation process first before considering legal action. If a lump sum payment is accepted and the proper paper work for the Informal Proposal is processed they cannot come back to pursue the debtors assets.
Related Questions
- Can my creditors take legal action to recover their debts such as seizing property or garnishing wages while a proposal is pending?
- Can a bankruptcy or a consumer proposal stop legal proceedings including the seizure of my property or the garnishment of my wages?
- I started a legal action to recover money in civil court and won. How do I now go about collecting?
