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`stop payments` on account

Lets say I plan to go bankrupt in the next few weeks or so, and a pre-authorized debit is coming up in a few days. Can I put a stop payment on my account? I could really use the money to pay the initial fee to the trustee.

Posted from: British Columbia

One Response to “`stop payments` on account”

A licensed trustee said...

If you are certain that you are about to file either bankruptcy or a consumer proposal then there’s no reason to continue making payments on the debts that will be part of the bankruptcy or proposal.

Be careful not to confuse your secured debts with the unsecured items that will be dealt with by the bankruptcy. If you want to keep your car then you need to keep making the payments for it. If you want to keep your home then you need to keep paying the mortgage. The debts you can stop paying are credit cards, lines of credit, unsecured loans, income tax arrears, etc.

If you are not certain you are going to file then you should continue to make your payments as they come due.