“I have not heard from my creditors in years. Do I still owe that money?”
This question is a common one. Most debts in Ontario are subject to a two-year limitation period. This mean that if no one has contacted you by letter or by telephone to repay your debt within two years of your last payment, you can possibly use the Statue of Limitations as a defense against any law suit. A successful Statute of Limitations defense would mean that the collection agency or lending organization cannot garnishee your wages (demand repayment through your employer) or place a lien on your property unless the court imposes a new “date of last activity” based on other, extenuating circumstances.
That does not mean your debt goes away forever. Equifax and Trans Union (the two major credit bureaus in Canada) can still retain a history of your debt (and any attempt to collect it) on your credit report for 6–7 years. That overly-aggressive collection agency? They can continue to call and write you in an attempt to collect on those debts.
So how do you make your debts vanish forever? If you’re struggling to pay down your creditors and want a structured, protective solution that will keep you out of bankruptcy and help protect your assets at the same time, consider a Consumer Proposal. This government-sanctioned settlement offer, administered by an Administrator with our firm, will provide you with one low monthly payment over a specific period of time. The result? And end to your debt. No more interest piling up. No more collection agency calls on those old debts. No more worries.