I am Canadian living in Washington State with my American husband. I am unable to work due to a disability and I am not able to pay on my Canadian credit card. My file was first in the hands of a law firm in Ontario, Canada, and they have told me they have exhausted my file because I am not gainfully employed. It has been handed over to a collections agency.

I read somewhere and am looking for it again that if you are not employed and unable to work that you can go before a judge and the debt can be canceled. Is this correct and if so, how would I go about doing this?

No, this is not correct or everyone who lost a job or became disabled would not pay his/her bills.

Who told you this?

A Judge has no power to "cancel" a debt. A Judge can only ENFORCE collection of a debt.

I found it on an Ontario website with regards to unsecured debt a couple of months ago and was looking for it again.

Why then would a top law firm in Canada decide to exhaust the file as not gainfully employed and have it handed over to a collections agency?

Because the "top law firm" (which firm is it, specifically? I work for a couple of Canadian firms but don't know how they are listed) didn't think it was worth their time and effort at $X an hour. They gave it to collection for a flat fee.

The Judgment will live on and on and that's what the collection agency is counting on. The Attorneys didn't think it was worth their time.

This question is asked every now and then so when you find the Statute that says the debt will be "erased" it will help other people.

If it IS true that the debt will be cancelled because you are unemployed I can think of any number of people who will become unemployed with you and not pay their debts, either.

The law firm is Anderson Sinclair, LLP out of Mississauga, Ontario.

According to the website that I am looking for, since I have no source of income, I am "not gainfully employed", unable to work nor do I have any disability benefits. I simply do not have the means to pay on the card. If this can be proven in court the judge can cancel the debt out.

Won't argue the merits of this law firm and hopefully they will join us and explain this situation.

I have searched and cannot find anything consistent with what you have posted. I do find that a Judge has no authority to "cancel" a debt out - UNLESS you are talking about bankruptcy. Please keep looking and I'll keep looking.

Thank you for your help. JudyKayTee. I have looked and looked and cannot find the website. I have read through quite a few legal advise website and think you are right about having to file for bankruptcy in order to have the debt amount lessened or dismissed.

I guess my first step is to send a letter advising the collections agency not to phone me and that communication must be done in writing. I read one person's story on this who is dealing with the same bank and collections agency and living in the US. The collections agency did not honor their registered mail from the US.

Anyway, I appreciate the time you took to help me. Again thanks!