[Jones]

Hi,

I applied and received a $6000 visa line of credit for a business start up approximately 2001-11. Things fell through shortly into the venture, and I couldn't make the payments. There was also a $1000 overdraft attached to the account. During this time I was living in Ontario, Canada and shortly thereafter moved to Manitoba, where I still live at this time.

According to my credit report(as of 2006-03), I owe slightly over $6000, and my last contact was apparently 2002-08. I am quite sure that my last payment was probably a few months before that, but I don't have the paperwork anymore.

I am just wondering what I should do regarding this debt, because as it stands I have NEVER been contacted by the institution that gave me the line of credit, nor am I receiving calls from any Creditors(which I find quite odd) unless they are calling and never leaving any messages.

To top it off, the overdraft on the account, was maxed out @ I think $1100 with service charges etc. I learned that the overdraft amount had been sent to creditors, but when I contacted them, they told me the amount had been sent back to the bank. This was about 2002-09 give or take, I then went to the financial institution, which told me that they did not have a record of the overdraft being sent back to them, and had no idea where it was.

This was the last contact I had regarding this account, because at the time I actually was trying to set things straight. However, due to the lack of information, I just said to myself forget it. I couldn't even make a payment on my line of credit because my account had been closed, and the only information they had attached to my closed account was a telephone number and a name which I was told to call. I called this number 4-5 times getting a voice mail every single time. Left a message probably 2-3 of those times with information to get ahold of me.

Also, I would like to note, that according to my credit report via Equifax, there is no record of the $1100 overdraft amount anywhere. As well, there are zero collection accounts, which I would think the overdraft going to collection should have become an entry, no?

So, recapping I am just wondering what I should do regarding this debt, because I find it very odd that no one appears to be attempting to contact me. I have a valid driver's licence, medical card, etc. I am not trying to hide at all. Should I just wait it out? I think the SoL is 6 years? I am just worried that they are waiting, holding back for a big bang which will force me into bankruptcy or something.:(

This seems so much clearer in my head than when I read this over, I hope it makes enough sense for someone to understand.

Thanks in advance,

Jones

[DrJ]

The statute of limitations in Ontario is only 2 years.

https://www.askmehelpdesk.com/showthread.php?t=22139

It seems that CaptainForest knows his stuff in this area... he may be able to tell you Manitoba's. Although, it should be according to the province where you were living at the time OR the province the creditor was based in at the time.

[CaptainForest]

You are correct.

The SOL in Ontario at the time was 6 years (it is 2 yrs now, but that applies to debts after Jan 1/04, therefore, doesn't apply to you)


You said this was a business loan (corporation? Sole proprietor?). If it was a corporation, does the corporation still exist?

I would say wait it out. If they plan to come after you, it will be in 2008. Therefore, put some money aside now just in case.

If it was a sole proprietorship, 6K won't make you declare bankruptcy, and they have limits on what they can take from you.

I say wait it out and see.

[Jones]

Sorry for the late reply, I was out of town for a couple days. Thanks for the info/advice. I think I will wait it out, my only concern at the moment is not the fact that it was 6k in 2002, but when they come after me it will be 10-12k+ (or more? ><) including the overdraft. I don't recall the exact interest rate, but it will be accumulating, correct? I guess time will tell. :eek:

Thanks again,

Jones