Experiencing financial difficulty in Lethbridge ranges from people concerned about their continued ability to stay current with their bills to those who have lost their jobs and have no savings on which to draw.
However, once Lethbridge residents begin to go late with some of their bill payments, they all share a common experience – creditor collection activity. The process begins with polite reminder letters and can end with wage garnishments and property attachments.
What kind of legal protection activity do you have against creditor collection activity? The sad truth is when you signed that application for a credit card or an installment loan or a line of credit, you entered into a legally binding agreement with the lending party. If a creditor is able to produce that proof of your agreement, the debt you owe them is valid, and they have the legal right to initiate collection activity to recoup what you owe them.
However, there are restrictions on what they can and cannot do in their efforts to collect. For example, they have an obligation to inform you in writing of certain collection activities they are considering. If they plan to place your debt with a professional debt collection agency, they must inform you in writing. If they are ready to initiate legal action, they must inform you in writing. They have the right to call you between the hours of 7 AM and 10 PM, but they cannot use abusive, intimidating, or profane language.
If a creditor has violated any of these, you can file a complaint with the Alberta government. Complaint forms and a complete description of what creditors can and cannot do are on www.servicealberta.ca.
Even though creditors have the right to collect and ultimately to sue, you can get legal protection. You should know the debt settlement and credit counseling solutions you might have heard of are not legal solutions to debt problems. Creditor participation in these programs is voluntary.
To stop creditor collection activity and/or to reverse existing wage garnishments, you have three options:
- Declaring personal bankruptcy
- Filing a consumer proposal
- Applying for an orderly payment of debts.
If you think you have good reason to avoid a bankruptcy filing, you should know the other two choices are considered non-bankruptcy solutions, even though they provide the same legal protection as a bankruptcy filing. Once in place, all these options will prevent your creditors from making any direct contact with you.
To determine which solution is best for your financial situation, schedule a free initial consultation with a licensed bankruptcy trustee at your earliest convenience. We can assess the level of your financial difficulty in Lethbridge and advise you of what solutions you have available.
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