People are always surprised when I tell them to stop paying their creditors, but in many cases it’s the best advice.  Once you’ve determined that you can’t dig yourself out of your personal debt issues on your own you should stop paying your creditors’ that will be included in your consumer proposal or personal bankruptcy filing.  Making additional payments prior to making a consumer proposal or filing personal bankruptcy does not affect how filing will affect your credit rating or how the personal bankruptcy or proposal process will work.  For example if you owe $50,000 or $55,000 because you’ve missed payments prior to filing your consumer proposal or bankruptcy process is unaffected.  Even if you are making a consumer proposal or filing personal bankruptcy you still need to keep paying your utility bills, rent/mortgage (if you plan to stay living where you are) and other regular living expenses.  By stopping making payments to creditors prior to filing it will allow you to save up some money to catch-up on your ongoing bills and give you some money so that you will be able to survive after making your consumer proposal or filing personal bankruptcy when you will no longer have access to credit.

-Chris Welker