[sindeye]

I have many debts. I have one specific debt collector calling 5 or 6 times in a row when I don't answer. I have no extra money to pay. I am on disability and my husband has no income since he had a heart attack - so we are just getting by on disability.

I have a Debt Collector who left a message stating that he is going to force me into bankruptcy, take my car, house, any assets I own and then my Income Tax Rebates for the next 9 years.

I live in Ontario, Canada.

Is this possible?:(

[Iknowalotofstuff]

Debt Collectors live by a simple rule... "the ends justify the means". They will generally say whatever they think will induce you into paying the debt and stopping the statute of limitations from applying. Some of your assets are exempt from seizure even if you were to declare bankruptcy... net equity of $5650.00 in a motor vehicle, $10000.00 in tools of the trade and $10000.00 in household furnishings. You each have these exemptions.

If you are a recipient of ODSP (Ontario Disability support Program, this income cannot be attached at source of if it is in a bank account (see: The Ontario Disability Support Program Act. Canada Pension Disability cannot be attached at source. However, once it is deposited into a bank account it becomes your property. The bank account could be garnished by a judgment creditor at 100%. The Collection Agency could do the same to a tax refund deposited to a bank account.

If there is equity in your home, the creditor could obtain a judgment and register it against title. If you property is sold, the creditor would be paid the amount of the debt plus accumulated interest. The creditor could also issue a Writ of Seizure and Sale and have the property sold to satisfy the debt. Mortgage holders would be paid first.

The Statute of Limitations in Ontario is 2 years. If the date of your last payment or acknowledgment of this debt is more than 2 years ago, the debt may be statute barred and you cannot be sued to recover the debt.

Why not investigate bankruptcy? You would not lose your assets. If there is no equity in your home, the mortgage holder will usually allow you to continue making payments and keep your house. You get all of the exemptions noted above.

In Canada, bankruptcy is defined as a "law that provides the honest but unfortunate debtor with a fresh start free of oppressive debt". This is exactly your situation. It generally cost nothing to talk with a trustee. One peace of advice about bankruptcy. If the trustee seems to push a "consumer proposal" over 'going bankrupt", get a second opinion. Many people see bankruptcy as failure and an inability to handle their money. In fact, the most common reason for bankruptcy is a change in personal or financial circumstances that are beyond ones control. Had you and your husband not become disabled, you may not be in this situation. Bankruptcy may provide you the "opportunity" to take control of your life once again. It does not have to be a "penalty" for dealing with circumstances beyond your control.

Collection agencies are regulated by the Collection Agencies Act in Ontario, Canada. If you feel an individual collector has "crossed the line" of reasonable conduct, make a complaint to the Province of Ontario. The fact you are in debt and cannot pay is not a license for being abused by this creditor or their agent.

A collector will continue to abuse you as long as you allow yourself to be abused. Do not take this "crap" from anyone.