Collection agents are very good at collecting money. (In fact, there is a large collection agency right here in Brantford). Collection agents will use “every trick in the book” to get you to pay what you owe. They will threaten to take you to court, and may even tell you that you will go to jail if you don’t pay your debts.
It is true that if you don’t pay your debts, they can take you to court. If they win in court, they can request a Garnishment Order from the Judge, which allows them to garnishee your wages. If they get a Garnishment Order, you have three choices:
1. let them garnishee your pay until the debt is paid in full;
2. file a consumer proposal; or
3. declare bankruptcy.
However, they cannot put you in jail for not paying your debts. In Canada, thankfully, you only go to jail if you are charged with or convicted of committing a criminal offense. If you kill someone, you will go to jail. Not paying your debts is not a criminal offense, so they won’t put you in jail for that.
If you commit fraud, you can go to jail. If you rob a bank, you can go to jail. But using a credit card, fully expecting to be able to pay it, and then losing your job and not being able to pay it, is not a criminal offense.
Of course collection agents generally only call you if you owe money, so if you cannot make payment arrangements with them directly, it may be time to consider outside help, so please give our Brantford trustee office a call at (519) 770-4440 and we can discuss your options for dealing with your debts, including debt consolidation, credit counselling, consumer proposals or a bankruptcy.
Tagged as debt consolidation loan, credit counseling, consumer proposal, personal bankruptcy, bankruptcy Brantford, bankruptcy Ontario
