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Old Debts

Old Debtssavings-passbook

You just got a letter/phone call about an old debt that you owe. The first consideration is to determine if you owe the money.   If you do not owe the debt, simply tell the collection company that you do not owe the money. Ask them to send you copies of any documentation that proves otherwise. When they say that they do not have to send you any papers or that they do not have to prove to you that you owe the money – be very clear – yes, they do have to prove that you owe the money and if they refuse to prove it, you will not pay them any money. In other words, you are not refusing to pay what you owe, but you are legally entitled to know what you owe and to whom you owe it to.

In Ontario, there is a law called The Limitations Act of Ontario which stops a creditor from suing you if your debt is over two (2) years old. The debt is still owing, of course, but the creditor cannot go to a court to collect the debt. You must be aware that if you acknowledge the debt in any way, the two-year period starts all over again. Also note that the credit bureau (Equifax Canada and Trans Union of Canada) will still list the delinquent account for six years as an R9 bad debt which will keep your credit score low. Certain debts are not subject to the two-year limitation period – these include income tax, government guaranteed student loans, child support arrears, etc.

Other provinces/territories have similar limitation periods.   Ontario, Alberta, British Columbia and Saskatchewan are all two years. Quebec’s limitation is three years. The rest of Canada is six years.

 

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation formTo learn more please visit our YouTube  Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

 

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Debt, Credit & Financial Consultants

Financial-Planning-And-Analysis-Interview-QuestionsDebt, Credit & Financial Consultants

If I am in financial trouble, do I have to go see (and pay) a consultant before I speak with a Licensed Insolvency Trustee? You do not have to use a consultant of any kind before speaking with a trustee and considering filing an Assignment in Bankruptcy or a Consumer Proposal. There may be a level of comfort in speaking with a consultant who is not in an officer of the court and may be able to communicate with you in your native language, but, this is a choice that you make that has a cost attached to it. You are paying a consultant for their opinion about your situation and then you still have to pay the trustee who is going to do the work. Sometimes you are simply paying two people to get a second opinion before you make a very serious decision of what to do with your life going forward.

 

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation formTo learn more please visit our YouTube  Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.