I have no assets and owe bank credit card debtors $90K+ & I can't make the required payments on the debt. Ontario statute of limitations states that after 2 years the debt cannot be collected if I don't acknowledge the debt within that period. I am getting phones calls, bills and letters regarding the debt and my last payment on the debt was 2 months ago. What do I do to not acknowledge the debt. Ignore all calls & correspondence? If they sue me & I end up in court won't I have to acknowledge the debt. What is the best way to handle this situation. I have lived in Florida for 10 years. I have had the credit cards for 15 years and signed the credit card contracts in Ontario 15 years ago. I have used the cards in Canada up until June/2008. Thw majoeity of the credit card debt was incurred in 2007.

Hello N:

The acknowledgment in court will be your signature on an application. Whether you acknowledge the debt NOW or not makes no difference. When you're in court, you don't have to say a word. They do all the saying. If, of course, what they say is the truth, and they have paperwork to back it up, then there's nothing to say, is there?

So, the best way to handle this situation is to go bankrupt. Otherwise, they'll get a judgment and it will follow you around for about 10 years.

Of course, you're in Canada, and your laws may differ somewhat. But, I'll bet not in any material way.

excon

Hello N:

The acknowledgment in court will be your signature on an application. Whether you acknowledge the debt NOW or not makes no difference. When you're in court, you don't have to say a word. They do all the saying. If, of course, what they say is the truth, and they have paperwork to back it up, then there's nothing to say, is there?

So, the best way to handle this situation is to go bankrupt. Otherwise, they'll get a judgment and it will follow you around for about 10 years.

Of course, you're in Canada, and your laws may differ somewhat. But, I'll bet not in any material way.

excon


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Hi N: I'm not sure where you got the deny for two years and it will go away idea; however, I know that if you advise a Collection Agency that the company can take you to court to force a judgement - they have a two-year statute of limitations to file.

If they don't, then they cannot seek payment later. That is the general rule in Ontario for Small Claims Court (under $25,000). I suggest you research the Ministry of Consumer Services website. It's got a lot of info and tools.

http://www.sse.gov.on.ca/mcs/en/Pages/default.aspx

Good luck!