Statute barred debts
July 22nd, 2009 by Questions
I`am in Ontario and have personal debt of about 180K. I have been in default since March 2007.The amount includes one creditor owed 50K who went ahead and obtained a default judgement. All the other debt is revolving lines of credit and none of the other creditors have made any attempt to collect through the courts. Will the other debts be statute barred now? Can I file a consumer proposal for this judgement alone?
Posted from: Ontario
One Response to “Statute barred debts”
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July 23, 2009 at 8:48 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
I would be very cautions as there are a variety of actions a creditor can take to prevent the Statute of Limitations from revoking their collection rights. In practice you find that most creditors are savvy enough to know and understand the laws and what is required from them to preserve their collection rights. As a result we rarely find that the Limitations legislation becomes and issue. However, if the debts were statute barred then you technically could file a consumer proposal on the remaining debts. The best thing for you to do is to discuss this directly with a local trustee.