Statute of Limitations and Consumer proposals

July 26th, 2007 by Questions

I arrived in Ontario in 2001 , after staying here for four years left Canada in May 2005 due to a family emergency. In that period I had accumulated about 30,000 dollars of consumer debt with a lion\’s share of the debt occuring in January 2005.

I returned to Toronto a week ago. My first question is: Are the debts now statute barred?
I returned to Toronto a week ago. My first question is: Are the debts now statute barred?
My second qustion: If I file a consumer proposal now do I restart the clock?
My third question: Does talking to a trustee about the debt restart the clock?

I don\’t want to walk away from the debt. I just want to have the leverage to force the creditors to accept repayment of just the principal (30,000 dollars) and not the extortionate interest (18,000 dollars) that they charge.

Questions

One Response to “Statute of Limitations and Consumer proposals”


July 27, 2007 at 9:35 pm, Barton Goth GCO Bankruptcy Trustees said:

When dealing with questions relating to the statute of limitations provisions you are best to contact an insolvency lawyer not a trustee as they would be more familiar with this type of legislation and the case law associated with this.

From my perspective you rarely see any debts that are no longer collectable as a result of this type of legisltaion (whether federal or provincial). You typically find where a debtor hasn’t been cooperative as long as the creditor makes collection attempt (as opposed to you acknowledging the debt) the time frame is restarted.

However, despite this you may want to contact a local trustee to discuss the proposal as often the type of discount from total debt you have discussed is achievable (in fact you may not have to go quite as high depending on your circumstances).

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