Legal Action

April 25th, 2008 by Questions

I am waiting for the new bankruptcy laws to come into force because of the 5 years rule for government student loans in the new law. In the meantime one of the student line of credit provider sent me a formal demand letter requesting complete payment of outstanding balance (100,000) or face legal and/or collection action. I was hoping to wait until the new law comes into force so I can also include my government loans as well. What will happen if the bank goes to court for the money I owe? Should I file bankruptcy before they go to court? Or just wait until the new law comes into force? For your information, I live in Ontario, I am not employed, do not own a vehicle or a house and have no assets. Hope you can help.


One Response to “Legal Action”

, A licensed trustee said:

Respectfully, if yo are not working and don’t own any assets then you shouldn’t be worried about the collectors taking you to Court. The purpose of taking you to Court is so that they may garnishee your wages (which you don’t have) and/or to seize assets (which you also don’t have). Don’t let them bully you or scare you.

Now, if you start working or if you somehow acquire something of value (inherit money or win a lottery) then you should speak to a financial advisor – for now, there is nothing your creditors can do to you except upset you. Whe the laws change you can decide whether or not you really need to file.

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