We know that you will get collection calls and, perhaps, have your wages garnisheed if you don’t pay a debt.

We know that you will get collection calls and, perhaps, have your wages garnisheed if you don’t pay a debt.

Home В» we Blog В» Ontario Limitations Act and Old Debts

Will it be correct that in the event that you simply ignore a vintage financial obligation it’ll go away? Not quite. You will find a misconceptions that are few the Ontario Limitations Act. This week’s Technical Tidbits version of Debt complimentary in 30 helps split the known reality from fiction.

Everyone knows that if you don’t spend a financial obligation, you’ll get collection telephone calls and, maybe, get wages garnisheed. Therefore yes you can easily ignore a financial obligation, however it might trigger collection actions. Doing nothing is not generally a good option. You don’t need to worry about wage garnishments if you don’t have a job. But that doesn’t suggest that one can merely ignore a financial obligation and now have it disappear.

Debts don’t just “go away”

When you yourself have no wages to garnishee, or no assets to seize, there many be no advantage up to a creditor or commercial collection agency agency using one to court and suing you. So yes, you can simply overlook the debt rather than suffer direct monetary effects. Your debt didn’t disappear completely, you nevertheless owe the funds. In cases where a bank or bank card business can’t take collection action it’s as though the debt has no impact on your financial life against you. Nevertheless the financial obligation continues to be here, and is nevertheless owed. The main element point listed here is because you have something worth protecting that you have a job, or assets, doing nothing is not a good strategy. (more…)