Creditors calling

 
Do your creditors contact you for payment?

Send threatening legal letters?

Has a collection agency called you repeatedly?

Do they threaten to repossess your car, furniture, television or even sue you (take you to Court)?

If so, you are probably feeling pretty stressed right now.

You are not at their mercy. They do not have the right to harass you and insult you. (Collection agencies are governed by the Fair Trading Act in Alberta and you may wish to file a complaint against a collection agency by contacting the Government of Alberta at http://governmentservices.gov.ab.ca/tipsheets/unfair_practices.htm

If you are in arrears or default on an agreement, creditors do have the right to try and collect the debt. If the creditor is unsecured they can demand payment in full and do not have to accept monthly payments from you. The creditor can sue you to get a judgment and then try to seize your possessions (items not exempt from seizure) or use the judgment to commence garnishment of your wages. This all takes time and the creditor is required to give notice of the action to sue you.

A bankruptcy or a proposal to creditors will stop a creditor from being able to collect from you, stop the creditor from suing you, stop the creditor from seizing possessions and stop the continued garnishment of your wages.

If the creditor has security (such as a car or household goods that you permitted them to register a lien on) and you are in arrears the creditor can have a bailiff come and seize the secured items to help recover on the debt. In a bankruptcy you may be able to continue making the agreed payments to retain the secured items. Alternatively, you may give the items to the secured creditor and stop the collection efforts for any balance owing to the creditor after the creditor has sold the security. In some instances the creditor may reduce the amount that must be paid if the value of the security is less than what is owing.

For further information or to get assistance contact us by phone at 403 266-6665, email or come in for a free consultation.