Entered a debt settlement contract
I have informed Citi-Financial that I have entered into a contract with a debt settlement firm, they stated to me they will not deal with that firm and will garnish my wages, can they garnish my wages if I have already informed them that I have entered a debt settlement program or aqre they just trying a scare tacti?. Or should I claim bankruptcy, before they garnish my wages?
Posted from: Ontario
Here’s the bad news: this is not a scare tactic – debt settlement companies do not provide you with any legal protection from your creditors. It Citi Financial doesn’t want to deal with the debt settlement firm they do not have to. If they want to sue you they still can.
Hopefully you haven’t paid the debt settlement company any money yet – if you have, you should ask for it back.
In order to have legal protection from your creditors you need to file a consumer proposal or personal bankruptcy. Given that you were ready to pay for a debt settlement, I suspect a consumer proposal will be the right answer for you, but speak to a trustee so they can explain all of your options.