Wondering “can I ignore debt collectors?” Short answer: you can, but it will likely make things worse. Here’s what really happens if you ignore debt collectors in Canada – and what to do instead.
Struggling with debt can be overwhelming. When collection calls start flooding in, it’s tempting to ignore. But while avoiding debt collectors might bring temporary relief, it doesn’t solve the underlying issue – and could land you in a worse financial position. At Spergel, we understand how stressful dealing with collection agencies can be. That’s why our experienced Licensed Insolvency Trustees (LITs) are here to help you understand your rights, know your options, and stop the calls for good.
What happens if you ignore debt collectors?
Here’s what can happen when you avoid collection calls:
1. The calls don’t stop
Debt collectors have a legal right to pursue unpaid debts. Ignoring them doesn’t erase what you owe. In fact, the calls may increase. While federal and provincial laws restrict harassment and abusive behaviour, collectors are still permitted to contact you – within set hours and frequency. You can formally request written communication, but this doesn’t stop legal action or the reporting of your debt.
2. Your credit score takes a hit
Once a debt is sent to collections, your credit report reflects this for up to six years in Canada – even if you eventually pay it off. This can significantly damage your credit score, making it harder to:
- Qualify for loans
- Rent an apartment
- Get approved for a mortgage or new credit card
- Even secure some jobs
3. You risk legal action
In Canada, debt collectors can sue you for unpaid debt. If they win, they may obtain a judgment from the court. This opens the door to serious consequences, such as:
- Wage garnishment (a portion of your paycheque goes directly to repay the debt)
- Frozen bank accounts
- Asset seizure, like personal property or savings
Each province has a statute of limitations (typically 2 years in Ontario), but lawsuits are becoming more common to prevent debts from becoming “statute-barred.”
What if I’m ‘creditor proof’?
Being “creditor proof” means you don’t have wages to garnish or assets to seize – for example, you rely solely on pension income or social assistance. Even then, collection calls can continue indefinitely, affecting your mental health and financial wellbeing.
Can debt collectors contact my family or employer?
Yes – but only under certain conditions. Collectors may reach out to others to locate you, but they cannot ask them to repay your debt unless that person co-signed a loan with you.
Should I ever pay a debt collector?
Not always – in fact sometimes you shouldn’t pay a debt collector at all. Here’s when you should not pay:
- If the debt isn’t yours (ask for verification)
- If it’s past the statute of limitations (making a payment resets the clock!)
- If you can’t afford it — talk to a Licensed Insolvency Trustee first to discuss your debt relief options
How to stop collection calls for good
The only legal way to stop collection calls permanently is by filing a consumer proposal or bankruptcy with a Licensed Insolvency Trustee. These solutions provide a stay of proceedings, which means:
- Calls and legal actions must stop
- Wage garnishments and lawsuits are halted
- You’ll only repay what you can reasonably afford
At Spergel, we’ll work with you to decide the best path forward – and advocate for your financial recovery so you don’t need to ignore debt collectors any more.
Consumer proposal: a powerful debt solution
A consumer proposal allows you to repay a portion of your debt (often as little as 20%) with:
- No interest
- No lawsuits
- One affordable monthly payment
- Protection from further collection activity
- The ability to keep your assets, including your home and car
Unlike credit counselling or informal settlements, only a Licensed Insolvency Trustee can file a consumer proposal in Canada.
Your next step: talk to Spergel
You don’t have to face debt collectors alone. At Spergel, we’ve helped thousands of Canadians stop the calls, rebuild their credit, and become debt-free. Book a free, confidential consultation today with a Licensed Insolvency Trustee – no pressure, no judgment, just real help. Let’s end the collection calls – for good.
Why trust Spergel?
- Over 35 years of experience helping Canadians get out of debt
- Licensed by the federal government to administer consumer proposals and bankruptcies
- Compassionate, non-judgmental advisors who work with you, not against you
- Thousands of 5-star reviews from real clients who’ve been where you are
