Collecting on a Debt - Revision history

Drew Jackson: /* Step 5. Consider legal action */

2023-11-07T00:57:23Z

Step 5. Consider legal action

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	If the debtor doesn’t pay, you may want to bring a legal action. You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC.		If the debtor doesn’t pay, you may want to bring a legal action. You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC.

	Just starting a lawsuit will sometimes make the debtor pay. As well, after starting the action, you may be able to collect from the debtor’s employer and others who owe money to the debtor. We explain the concept of “garnishment” elsewhere. [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/dealing-debt~~/creditor-~~wants-take-money-your~~-wages-or-bank~~-account~~ See our information on garnishment].		Just starting a lawsuit will sometimes make the debtor pay. As well, after starting the action, you may be able to collect from the debtor’s employer and others who owe money to the debtor. We explain the concept of “garnishment” elsewhere. [https://www.peopleslawschool.ca/creditor-garnish-wages-or-bank/ See our information on garnishment].

	If the amount you’re trying to collect is less than $5,000, you can bring your claim to the Civil Resolution Tribunal. This is an online system designed for people to bring claims on their own. If your claim is between $5,000 and $35,000, you’d sue in Small Claims Court.		If the amount you’re trying to collect is less than $5,000, you can bring your claim to the Civil Resolution Tribunal. This is an online system designed for people to bring claims on their own. If your claim is between $5,000 and $35,000, you’d sue in Small Claims Court.

Drew Jackson: /* Step 4. Send a demand letter */

2023-11-07T00:56:56Z

Step 4. Send a demand letter

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	Your letter can’t threaten to take improper action to collect. But you can say you’re considering legal action. You can also give the debtor a time window to make payment arrangements (for example, 30 days).		Your letter can’t threaten to take improper action to collect. But you can say you’re considering legal action. You can also give the debtor a time window to make payment arrangements (for example, 30 days).

	A template is always a good place to start. [https://www.peopleslawschool.ca/~~everyday-legal-problems/money~~-~~debt/template-letters-agreements/~~loan-demand~~-letter~~ We have a loan demand letter template].		A template is always a good place to start. [https://www.peopleslawschool.ca/letter-loan-demand/ We have a loan demand letter template].

	===Step 5. Consider legal action===		===Step 5. Consider legal action===

Drew Jackson: /* You can’t take the debtor’s property */

2023-11-07T00:56:11Z

You can’t take the debtor’s property

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	===You can’t take the debtor’s property===		===You can’t take the debtor’s property===
	Whatever approach you decide on, you can’t take the debtor’s property — except through legal action. If you sue the debtor and get a judgment in your favour, you may be able to take their property as repayment. We explain this elsewhere. [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/dealing-debt~~/creditor~~-wants~~-repossess~~-your~~-property See our information on repossessing property].		Whatever approach you decide on, you can’t take the debtor’s property — except through legal action. If you sue the debtor and get a judgment in your favour, you may be able to take their property as repayment. We explain this elsewhere. [https://www.peopleslawschool.ca/creditor-repossess-property/ See our information on repossessing property].

	Nor can you harass the debtor. For example, you can’t use threatening, profane, or intimidating language. We cover this in some detail in our information on debt collectors. [https://www.peopleslawschool.ca~~/everyday-legal-problems/money-debt/dealing-debt~~/dealing-debt-collectors Here's a link to that information].		Nor can you harass the debtor. For example, you can’t use threatening, profane, or intimidating language. We cover this in some detail in our information on debt collectors. [https://www.peopleslawschool.ca/dealing-debt-collectors/ Here's a link to that information].

	===There’s a time limit to sue to collect a debt===		===There’s a time limit to sue to collect a debt===

Drew Jackson: /* Legal advice */

2023-11-07T00:32:42Z

Legal advice

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	:'''People’s Law School'''		:'''People’s Law School'''
	:See more options for free or low-cost legal help.		:See more options for free or low-cost legal help.
	:[https://www.peopleslawschool.ca/options-legal-help/~~?utm_source=beagle~~ Visit website]		:[https://www.peopleslawschool.ca/options-legal-help/ Visit website]

	{{Dial-A-Law_Navbox\|type=consumer}}		{{Dial-A-Law_Navbox\|type=consumer}}
	{{Dial-A-Law Copyright}}		{{Dial-A-Law Copyright}}

Drew Jackson: /* Work out the problem */

2023-11-07T00:32:21Z

Work out the problem

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	==Work out the problem==		==Work out the problem==

	~~===The steps involved===~~
	If you run into problems collecting on a debt, there are steps you can take.		If you run into problems collecting on a debt, there are steps you can take.

	~~'''~~Step 1~~'''~~. Decide on a course of action		===Step 1. Decide on a course of action===

	~~'''Step 2'''~~. ~~Collect information on~~ the debt		Collecting debts can be a pain. As a first step, ask yourself if it’s worth the effort. For example, maybe the debt is very small. Or the debtor is unlikely to be able to repay anything. In either case, it may cost you more time and money to collect than the debt is worth.

	~~'''Step 3'''~~. ~~Contact~~ the debtor

	~~'''Step 4'''~~. ~~Send a demand letter~~

	~~'''Step 5'''~~. ~~Consider legal action~~

	===~~More on each step===~~		===Step 2. Collect information on the debt===
	~~'''~~Step 1. ~~Decide~~ on ~~a course of action'''<br>~~
	~~Collecting debts can be a pain. As a first step, ask yourself if it’s worth the effort. For example, maybe~~ the debt ~~is very small. Or the debtor is unlikely to be able to repay anything. In either case, it may cost you more time and money to collect than the debt is worth.~~

	~~'''Step 2. Collect information on the debt'''<br>~~
	You should gather information and documents relating to the debt. These include:		You should gather information and documents relating to the debt. These include:

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	The information and documents will help you collect the debt.		The information and documents will help you collect the debt.

	~~'''~~Step 3. Contact the debtor~~'''<br>~~		===Step 3. Contact the debtor===

	Reach out to the debtor by phone, email or text. Remind them of the debt and ask what they can do to pay it. If the debtor agrees to pay based on a payment schedule, put the agreement in writing. Get them to date and sign it.		Reach out to the debtor by phone, email or text. Remind them of the debt and ask what they can do to pay it. If the debtor agrees to pay based on a payment schedule, put the agreement in writing. Get them to date and sign it.

	~~'''~~Step 4. Send a demand letter~~'''<br>~~		===Step 4. Send a demand letter===

	A '''demand letter''' is a letter insisting on payment. In it, you can offer payment options that are acceptable to you. For example, payment by credit card or e-transfer.		A '''demand letter''' is a letter insisting on payment. In it, you can offer payment options that are acceptable to you. For example, payment by credit card or e-transfer.

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	A template is always a good place to start. [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/template-letters-agreements/loan-demand-letter We have a loan demand letter template].		A template is always a good place to start. [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/template-letters-agreements/loan-demand-letter We have a loan demand letter template].

	~~'''~~Step 5. Consider legal action~~'''<br>~~		===Step 5. Consider legal action===

	If the debtor doesn’t pay, you may want to bring a legal action. You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC.		If the debtor doesn’t pay, you may want to bring a legal action. You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC.

Elena Renderos: Elena Renderos moved page Collecting a Debt (No. 250) to Collecting on a Debt: change title

2023-10-11T05:26:24Z

Elena Renderos moved page Collecting a Debt (No. 250) to Collecting on a Debt: change title

← Older revision	Revision as of 05:26, 11 October 2023
(No difference)

Elena Renderos at 06:46, 2 October 2023

2023-10-02T06:46:36Z

Show changes

Drew Jackson at 22:01, 29 March 2019

2019-03-29T22:01:48Z

← Older revision		Revision as of 22:01, 29 March 2019
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	{{REVIEWEDPLS \| reviewer = [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor\|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}		{{REVIEWEDPLS \| reviewer = [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor\|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}
	No one enjoys it when they’re owed money and don’t get paid. Learn the options available to you when collecting on a debt, and the steps to deal with the situation.		No one enjoys it when they’re owed money and don’t get paid. Learn the options available to you when '''collecting on a debt''', and the steps to deal with the situation.

	==Understand your legal options==		==Understand your legal options==
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	See our information on [[Getting Your Judgment Paid (No. 169)\|getting your judgment paid (no. 169)]].		See our information on [[Getting Your Judgment Paid (No. 169)\|getting your judgment paid (no. 169)]].


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	{{Dial-A-Law_Navbox\|type=consumer}}		{{Dial-A-Law_Navbox\|type=consumer}}
	{{Dial-A-Law Copyright}}		{{Dial-A-Law Copyright}}

Elena Renderos at 08:03, 28 March 2019

2019-03-28T08:03:29Z

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	{{~~Dial~~-~~A-Law Blurb~~}}		{{REVIEWEDPLS \| reviewer = [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor\|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}

	{{Dial-A-Law TOC\|expanded = ~~credit~~}}
	No one enjoys it when they’re owed money and don’t get paid. Learn the options available to you when collecting on a debt, and the steps to deal with the situation.		No one enjoys it when they’re owed money and don’t get paid. Learn the options available to you when collecting on a debt, and the steps to deal with the situation.

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	===You can’t take the debtor’s property===		===You can’t take the debtor’s property===
	Whatever approach you decide on, you can’t take the debtor’s property — except through taking legal action (this is explained below). Nor can you harass the debtor; see our information on [[Harassment by Debt Collectors (~~Script~~ 252)\|harassment by debt collectors (no. 252)]] for more on this topic.		Whatever approach you decide on, you can’t take the debtor’s property — except through taking legal action (this is explained below). Nor can you harass the debtor; see our information on [[Harassment by Debt Collectors (No. 252)\|harassment by debt collectors (no. 252)]] for more on this topic.

	===There is a time limit to sue to collect a debt===		===There is a time limit to sue to collect a debt===
	The [http://canlii.ca/t/8qx3 law in BC] creates a basic '''limitation period''' of two years for starting a legal action. A lawsuit cannot be brought more than two years after the “claim is discovered”. In the case of a debt, if a debtor hasn’t made a payment — or acknowledged they owe a debt — in more than two years, the creditor may be barred from bringing legal action to collect.		The [http://canlii.ca/t/8qx3 law in BC] creates a basic '''limitation period''' of two years for starting a legal action. A lawsuit cannot be brought more than two years after the “claim is discovered”. In the case of a debt, if a debtor hasn’t made a payment — or acknowledged they owe a debt — in more than two years, the creditor may be barred from bringing legal action to collect.

	If the time limit is coming up soon for a debt owed to you, and you want to keep your right to collect, you should start legal action as soon as possible. If you are not sure about the time limit, [[Low Cost ~~and Free~~ Legal ~~Services~~ (~~Script~~ 430)\|get legal advice]] before you sue. If you start a lawsuit after the deadline, you may have to pay the debtor’s legal costs.		If the time limit is coming up soon for a debt owed to you, and you want to keep your right to collect, you should start legal action as soon as possible. If you are not sure about the time limit, [[Free and Low-Cost Legal Help (No. 430)\|get legal advice]] before you sue. If you start a lawsuit after the deadline, you may have to pay the debtor’s legal costs.

	==Deal with the problem==		==Deal with the problem==
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	You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC.		You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC.

	Just starting a lawsuit will sometimes make the debtor pay. As well, after starting the action, you may be able to collect money from the debtor’s employer and others who owe money to the debtor. See our information on [[Garnishment (~~Script~~ 251)\|garnishment (no. 251)]].		Just starting a lawsuit will sometimes make the debtor pay. As well, after starting the action, you may be able to collect money from the debtor’s employer and others who owe money to the debtor. See our information on [[Garnishment (No. 251)\|garnishment (no. 251)]].

	The amount you are seeking affects the choice of court you would sue in.		The amount you are seeking affects the choice of court you would sue in.
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	If you are seeking '''up to $5,000''', you can file a claim with the [https://civilresolutionbc.ca/ Civil Resolution Tribunal]. The tribunal is an online system designed for people to represent themselves.		If you are seeking '''up to $5,000''', you can file a claim with the [https://civilresolutionbc.ca/ Civil Resolution Tribunal]. The tribunal is an online system designed for people to represent themselves.

	For amounts '''between $5,000 and $35,000''', you would sue in [http://www.provincialcourt.bc.ca/types-of-cases/small-claims-matters Small Claims Court]. Many people represent themselves in this court. It’s less expensive and less risky than going to Supreme Court. If the debtor owes you more than $35,000, you can sue in Small Claims Court for up to $35,000 and forget the rest. See our information on [[Suing Someone in Small Claims Court (~~Script~~ 166)\|Small Claims Court]] (no. [[Suing Someone in Small Claims Court (~~Script~~ 166)\|166]] to [[Going to Trial in Small Claims Court (~~Script~~ 168)\|168]]).		For amounts '''between $5,000 and $35,000''', you would sue in [http://www.provincialcourt.bc.ca/types-of-cases/small-claims-matters Small Claims Court]. Many people represent themselves in this court. It’s less expensive and less risky than going to Supreme Court. If the debtor owes you more than $35,000, you can sue in Small Claims Court for up to $35,000 and forget the rest. See our information on [[Suing Someone in Small Claims Court (No. 166)\|Small Claims Court]] (no. [[Suing Someone in Small Claims Court (No. 166)\|166]] to [[Going to Trial in Small Claims Court (No. 168)\|168]]).

	For amounts '''over $35,000''', you would sue in [https://www.supremecourtbc.ca/ BC Supreme Court].		For amounts '''over $35,000''', you would sue in [https://www.supremecourtbc.ca/ BC Supreme Court].
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	*You can garnish the debtor’s wages or other money owed to the debtor.		*You can garnish the debtor’s wages or other money owed to the debtor.

	See our information on [[Getting Your Judgment Paid (~~Script~~ 169)\|getting your judgment paid (no. 169)]].		See our information on [[Getting Your Judgment Paid (No. 169)\|getting your judgment paid (no. 169)]].



	~~[updated October 2017]~~

	'''The above was last reviewed for legal accuracy by [https://www.peopleslawschool.ca/lawyer/robert-rogers Robert Rogers], Hamilton Duncan, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor.'''

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			{{Dial-A-Law_Navbox\|type=consumer}}
	{{Dial-A-Law Copyright}}		{{Dial-A-Law Copyright}}

	~~{{Dial-A-Law_Navbox\|type=credit}}~~

Drew Jackson: Drew Jackson moved page Collection of Debts (Script 250) to Collecting a Debt (No. 250): Aligning title to new website

2019-03-13T01:26:35Z

Drew Jackson moved page Collection of Debts (Script 250) to Collecting a Debt (No. 250): Aligning title to new website

← Older revision	Revision as of 01:26, 13 March 2019
(No difference)