A stay of proceedings in a consumer proposal is a powerful legal protection that stops creditors from suing you, garnishing your wages, or contacting you for payment.
When you file with the trustees at Yanch Dey, the stay takes effect immediately, freezing all unsecured debt collection so you can regain control of your finances without pressure or harassment.
A stay of proceedings in a consumer proposal acts like a legal shield.
It is a court-ordered freeze that prevents creditors from continuing or starting any action to collect unsecured debt. This means lawsuits stop, wage garnishments stop, and all collection calls and emails must end immediately.
The goal is to give you breathing room while our trustees put forward an affordable repayment plan on your behalf.
A stay of proceedings is not something you can request on your own.
Only Licensed Insolvency Trustees have the authority to file the documents that trigger it. Once filed, the stay is automatic—there is no waiting period, no separate hearing, and no negotiation needed.
The trustees guide you through the steps, make sure all creditors are notified, and ensure the legal protection remains in place while your proposal is active.
The stay of proceedings stops a wide range of collection actions, including:
Creditors must direct all communication through the trustee. They cannot demand payment or pressure you while the stay is in force.
Once the stay of proceedings is in place, our trustees formally notify each creditor.
This confirms that legal protection has begun and that all actions must stop. Throughout the proposal, creditors must follow the rules, submit their claims through the trustee, and respect the payment terms once accepted.
This structured system is designed to remove stress and keep everything organized.
The Canada Revenue Agency is fully bound by a stay of proceedings in a consumer proposal.
This means tax collectors cannot continue garnishments, frozen accounts, or collection activity. However, the stay does not reverse previous enforcement, such as a lien already registered on property.
The trustees review your CRA situation carefully and advise how the stay applies to your specific accounts.
The stay of proceedings remains active throughout your consumer proposal.
Creditors cannot pursue legal action or contact you while you are completing your payments. Once you finish the proposal and receive your Certificate of Full Performance, the debts included in the proposal are discharged, and the stay ends naturally.
For most people, this means years of uninterrupted financial protection while rebuilding stability.
This consumer proposal calculator shows an approximate of how much you could save.
If you’re feeling overwhelmed by debt and not sure where to start, the best thing you can do is talk to someone who understands.
Call now and speak directly with me — Kelly Dey — for clear, honest advice that’s tailored to your situation. There’s no pressure and no judgment. We’ll look at your options together and create a plan that helps you breathe again. Getting started is easier than you think, and one simple conversation can put you back in control of your money and your life.
Let’s take that first step today, call 905-721-7506.
A. Immediately. As soon as the trustees file your consumer proposal with the government, the stay of proceedings activates. Lawsuits, garnishments, and collection calls must stop that same day. There is no waiting period, and creditors are legally required to comply once they are notified.
A. Yes. A stay of proceedings stops ongoing garnishments, even if your employer has already begun deducting money. Once the trustee informs your employer of the stay, the garnishment must end before the next pay cycle.
No. Creditors cannot start or continue a lawsuit once the stay of proceedings is active. Any existing legal action becomes frozen.
They cannot move forward with judgments, hearings, or collections related to unsecured debt.
A. Yes. CRA must follow the stay of proceedings just like other creditors. They must stop garnishments, frozen accounts, and collection efforts. However, liens already registered on property remain in place because the stay does not undo actions completed before filing.
A. The stay lasts for the entire duration of your consumer proposal.
As long as you stay on track with your payments, creditors cannot pursue any enforcement. When your proposal is completed and discharged, the stay ends because the debts have been legally resolved.
Insolvency Trustee – Kelly Dey
If you’re feeling weighed down by money or debt issues, give me a call at 905-721-7506 and lets just have conversation.
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Debbie S.
3 days ago
★★★★★ The stay of proceedings stopped my wage garnishment the same day. Our trustees handled everything and the calls ended instantly.
Andrew M.
1 week ago
★★★★★ I had a lawsuit from a credit card company. The stay in the consumer proposal froze the court action and gave me room to breathe.
Janice R.
2 weeks ago
★★★★★ CRA was garnishing my pay. The stay of proceedings stopped it immediately and Yanch Dey explained everything in plain language.
Chris D.
3 weeks ago
★★★★★ I didn’t know the stay would stop collection agencies from calling. The silence after months of harassment was life-changing.
Laura P.
1 month ago
★★★★★ The stay of proceedings in my consumer proposal ended a judgment against me. I finally felt protected and supported.
Rise Above Your Debt!
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