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    ania980's Avatar
    ania980 Posts: 2, Reputation: 1
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    #1

    Jul 20, 2012, 07:46 AM
    Consumer Proposal & Collection Agency
    My ex husband filed a consumer proposal last year. A collection agency is coming after me for the entire balance of a credit card that I was made to believe was cancelled once we got divorced. My question is how can the bank collect on a credit card when its included in a consumer proposal? It seems that the bank will get paid more than it’s owed on the credit card.

    Also I was wondering of the status of limitation. Does the status of limitation start when he stopped making payments on the credit card or there is no start to the status of limitation since he is making payments for the consumer proposal?

    Also when the collection agency sent me a letter the interest is growing on the account even though it was included in a consumer proposal. Is that legal?
    Thank you
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #2

    Jul 20, 2012, 07:57 AM
    Quote Originally Posted by ania980 View Post
    My ex husband filed a consumer proposal last year. A collection agency is coming after me for the entire balance of a credit card that I was made to believe was cancelled once we got divorced. My question is how can the bank collect on a credit card when its included in a consumer proposal? It seems that the bank will get paid more than it’s owed on the credit card.

    Also I was wondering of the status of limitation. Does the status of limitation start when he stopped making payments on the credit card or there is no start to the status of limitation since he is making payments for the consumer proposal?

    Also when the collection agency sent me a letter the interest is growing on the account even though it was included in a consumer proposal. Is that legal?
    Thank you

    It's Statute of Limitations and it varies by State/Country. Where are you? It runs from the last activity on the account, a payment or charge.

    What is a consumer proposal? I'm gathering it's some sort of debt consolidation.

    I'm gathering it's a joint credit card. Wasn't it addressed in the divorce?

    The dollar amount is probably the debt plus fees and interest.
    ania980's Avatar
    ania980 Posts: 2, Reputation: 1
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    #3

    Jul 20, 2012, 08:19 AM
    I am from Ontario Canada.
    Consumer Proposal is one step below Bankruptcy.
    And I am looking into the divorce settlement for more info.
    Thank you
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Jul 20, 2012, 09:54 AM
    If this is a joint debt, HE filed you did not. So he does not owe it, but if it was a joint debt, you still owe it since you did not file.

    Works same way in US. The debt was just relieved from his liability, but you still owe it, now you can not force him to help with it.
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