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Difference between revisions of "Dealing with Debt (10:V)"
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Dealing with Debt (10:V) (view source)
Revision as of 20:51, 17 February 2017
, 20:51, 17 February 2017→C. Communicating with Creditors when Unable to Make Contractual Payments
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:'''NOTE:''' Before communicating with creditors, debtors should be aware of the consequences of acknowledging a debt as a result of the ''Limitation Act'' SBC 2012 c 13. Under the recently revised Act, for debts last acknowledged from June 1, 2013 onwards, after two years since the last acknowledgement of a debt by the debtor, a creditor has no legal recourse for pursuing the unpaid debt. Therefore, by instructing a debtor to acknowledge a debt, even implicitly, a clinician will create a renewed two year time frame for the creditor to initiate legal action against the debtor. See note above, at the start of Section III, for further information. | :'''NOTE:''' Before communicating with creditors, debtors should be aware of the consequences of acknowledging a debt as a result of the ''Limitation Act'' SBC 2012 c 13. Under the recently revised Act, for debts last acknowledged from June 1, 2013 onwards, after two years since the last acknowledgement of a debt by the debtor, a creditor has no legal recourse for pursuing the unpaid debt. Therefore, by instructing a debtor to acknowledge a debt, even implicitly, a clinician will create a renewed two year time frame for the creditor to initiate legal action against the debtor. See note above, at the start of Section III, for further information. | ||
:'''NOTE: Debtors should also be aware that if a judgement has been rendered against them it can be enforced for 10 years after the date of judgement (s 7). Refer to the ''Limitation Act'' for exceptions to this rule (s 23). | :'''NOTE:''' Debtors should also be aware that if a judgement has been rendered against them it can be enforced for 10 years after the date of judgement (s 7). Refer to the ''Limitation Act'' for exceptions to this rule (s 23). | ||
Depending on a consumer’s circumstances, they may need to contact their creditors to ask for assistance in getting through financially difficult times. Most people truly want to honour their commitments; however, they may not be able to do so at this time. If someone needs help with determining what their budget is and if they have surplus income to offer their creditors a reduced payment, the Credit Counselling Society is able to help consumers at no cost: 1-888-527-8999. | Depending on a consumer’s circumstances, they may need to contact their creditors to ask for assistance in getting through financially difficult times. Most people truly want to honour their commitments; however, they may not be able to do so at this time. If someone needs help with determining what their budget is and if they have surplus income to offer their creditors a reduced payment, the Credit Counselling Society is able to help consumers at no cost: 1-888-527-8999. | ||
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#update creditor periodically, e.g. if debtor's situation stays the same or improves and if they’re able to resume contractual payments. | #update creditor periodically, e.g. if debtor's situation stays the same or improves and if they’re able to resume contractual payments. | ||
:'''NOTE:''' Contact the Credit Counselling Society for free help with this process if needed. The creditors may feel the reduced payments are not acceptable, but would likely not pursue alternative legal action if this is all the debtor can afford at this time. Communication with the creditors is vital, especially if a consumer has no ability make payments at this time. | :'''NOTE:''' Contact the Credit Counselling Society for free help with this process if needed. The creditors may feel the reduced payments are not acceptable, but would likely not pursue alternative legal action if this is all the debtor can afford at this time. Communication with the creditors is vital, especially if a consumer has no ability make payments at this time. | ||
== D. Debt Consolidation and Refinancing == | == D. Debt Consolidation and Refinancing == | ||
