When does interest on my debts stop?
The appointment of a Trustee by the Office of the Superintendent of Bankruptcy locks down the date and time of the bankruptcy or consumer proposal and triggers a Stay of Proceedings, which stops creditors from their rights to attach interest to your debt.
Once your bankruptcy or proposal documents are signed, they are filed with the Office of the Superintendent, which responds by issuing a Certificate of Appointment. The Certificate of Appointment makes the bankruptcy or proposal official, and notes the date and time of the appointment of the Trustee to your file. That is the point at which all interest on the debts provable in the bankruptcy or proposal stops. Once the bankruptcy is discharged, or the proposal completed, unsecured debts, and the interest that did not accumulate due to the Stay of Proceedings, are discharged.
Please note that debts that survive bankruptcy or proposals, such as recent student loans (see section 178 of the Bankruptcy and Insolvency Act), may continue to accrue interest during the bankruptcy or proposal period. In addition, debts which are not discharged due to incomplete bankruptcies or proposals may have retroactive interest added back to the date of the original Stay of Proceedings.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.