Question regarding personal debt and statute of limitations
-please delete thread-
Last edited by jimmers1 on Apr 18th, 2019 2:34 pm, edited 4 times in total.
Apr 1st, 2019 8:12 pm
Apr 1st, 2019 10:41 pm
1. BCjimmers1 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.
Apr 2nd, 2019 1:04 am
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