Personal Finance

Question regarding personal debt and statute of limitations

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  • Apr 2nd, 2019 1:04 am
[OP]
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Mar 31, 2019
1 posts

Question regarding personal debt and statute of limitations

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Last edited by jimmers1 on Apr 18th, 2019 2:34 pm, edited 4 times in total.
2 replies
Sr. Member
User avatar
Jun 29, 2012
662 posts
171 upvotes
Vancouver
jimmers1 wrote: Hi RFDers on Personal Finance,

I have a question which I might get rebuke for, however, please bear with me. My current situation is that I have a large unsecured line of credit debt from a major bank in Canada. Unfortunately, unexpected circumstances arose where I ended up defaulting on the loan. It seems that the bank has hired a collections firm to collect on the debt, and I am not sure if they have completely sold the debt to collections (for x cents on the dollar). Currently, I have no income or any assets. My goal is to pay back the loan in the future when I do get back on my feet and here lies some questions I have.

1) I originally incurred the debt in British Columbia, however, I changed addresses a couple of times (Ontario, Manitoba). I am now back in BC but without a permanent address. I filed my last income tax (2018) in Manitoba and that is the address collections has of me. I am wondering which province's statute of limitations I would be under (BC is 2 years, Manitoba is 6 years)?

2) How will collections know if I am working so that they can take me to court to garnish my wages? If they do take me to court, where will they serve me? I am no longer living in Manitoba. If I do not attend court because I am not aware, will I be arrested? Will I get a criminal record? Will I be able to travel between countries? If I get a job in the USA, is there any legal action the creditors can take against me? I fully intend to return to Canada as my family is here.

3) I read that in many cases, creditors don't bother to take debtors to court. I am wondering if this is amount dependent, and if there is in general an amount above which most banks would sue (for ex. $25K)

4) Is there any chance that the creditors can hike-up the interest on my debt after they are written-off so that they snowball?

Thank you very much for any advice. I would also love to hear if there is any resource that I can attend to which can point me in the right direction.
1. BC
2. They really won't know unless they sue you and win and then they will find you through your filed taxes.
3. There is no rhyme or reason. I've heard of people being sued for 3000.
4. They can add interest.
Deal Addict
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Dec 24, 2007
1502 posts
1755 upvotes
BC
TheDogAteMyName wrote: 1. BC
2. They really won't know unless they sue you and win and then they will find you through your filed taxes.
3. There is no rhyme or reason. I've heard of people being sued for 3000.
4. They can add interest.
1. Don't pay any amount or acknowledge anything in writing about the outstanding debt with anyone, otherwise the 2-year statutory time limit (BC) to take legal action starts up again

2. No they cannot find you through your filed returns as the CRA does not give out any personal information to outside companies. Only CRA Collections will find you anywhere in Canada if you don't pay your taxes.
This is a civil matter not criminal, so no one will be issuing a warrant for your arrest. As it is not criminal there is no impact on your passport.
Our laws have no jurisdiction in the US.

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