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Non Bankruptcy

Court Dates Not Relating To Bankruptcy

The people you owe can take you to court to collect the money owed to them. If you are experiencing difficulties with collection agencies or other creditors, you should consult a licensed insolvency trustee. You may be able to resolve your overwhelming financial situation without filing for personal bankruptcy, or you may decide that filing for bankruptcy is your best option.

Collection agencies and seizure of property

Collection agencies or creditors take debtors to court as a last resort but in some cases, they will get a court order so they can seize your property or garnishee your wages. Your creditors can only seize your property without a court order if you signed a lien document at the time of purchase/borrowing.

In most provinces, basic household goods are protected and cannot be seized by your creditors, regardless of court documents. Make sure you know your rights.

You cannot be sent to jail for non-payment of debts. All court cases resulting from non-payment of debts are civil court cases, not criminal cases.

Bankruptcy and debt related court cases

Collection agencies or the principal creditor may take you to court to recover their money. A judgement will be made stating what you owe and to whom, and the creditor can ask the court to enforce this judgement. Your wages could be garnished, or your bank account or assets seized.

A bankruptcy or a Proposal will prevent or even stop this as legal actions are stayed when you file  A Stay results in wage garnishments being ceased except special payments such as Family Responsibility.

If you have filed for bankruptcy or been declared bankrupt, and must attend a court hearing, your trustee can provide you with the relevant paperwork.

Bankruptcy does not erase all your debts. Any debts you have from other court awarded damages; court penalties and fines; spousal and child support (alimony); student loans less than 7 years old; and certain government overpayments must still be repaid. However, many of these creditors will not be able to collect from you during the bankruptcy or proposal process. Secured creditors can still deal with the secured asset if they are not paid.