Creditor protection

When you file a bankruptcy in Canada thee is a stay of proceedings that is immediately put into place. This is what is often referred to as “bankruptcy protection.” Essentially what this stay does is it stay’s the collection rights of your creditors, meaning, that once the bankruptcy is in place your creditors are no longer able to commence or continue any action, whether legal or simply directly attempting to coheres you to pay the outstanding amounts. The reason for this stay of proceedings is so that you creditors cannot get in the way of you complying with your duties and prevent you from being discharged from your debts.

For more information on this I suggest you contact a licensed trustee and he will be able to go through the specifics of the stay as necessary.