| Author |
 Topic Search  Topic Options
|
KillMensa 
Newbie
Joined: 20/July/2004
Location: Canada
Points: 11
|
 Post Options
 Thanks(0)
 Quote  Reply
 Topic: Being taken to court
Posted: 24/January/2005 at 11:55am |
|
So some collection agency is threatening to take me to court if I don't
pay my balance of something in the area of $1500 before Jan 31.
They said that doing this (they didn't call it a referal to justice,
but something else using the word "statement of..." or something to
that effect) these things would happen:
1) Credit Destroyed for 10 years.
2) 33.3% of my wages garneshed.
3) Total balance would include current balance AND court costs.
Now, while this is a little scary, it seems a little bit silly, too.
First of all, I'm not currently employed. Secondly, it's only $1500!
Thirdly, the last payment I sent them was about 4-5 months ago. And
finally, when I asked if they would accept small payments in the
meantime, until I'm employed again, they said no. Apparently, a baliff
will be delivering a subpeona on the 31st.
Should I be worried, or is this a tactic?
Thanks.
|
 |
|
Sponsored Links
|
|
|
whereto?
Senior Member
Joined: 13/June/2004
Points: 292
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 12:12pm |
|
Is it a student loan? If so....likely not.
If its retail there is more of a chance but not much if you are unemployed.
That 33.3% is just a number. The court would decide the amount
based on your details. THe rest of it is about right if they do
it. Honestly, it doesn't make sense for them to do this, but dont
take that as 100%
|
|
wren_red
Newbie
Joined: 23/January/2005
Points: 32
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 12:24pm |
|
whoa.
Your not employeed and it's $1500. You stated this to your CA and the letter I would keep in hand.
It sounds theatening in it's nature but I would have a second set of
eyes read it over (I have my best friend to do that for me), just
incase I'm over reacting to a 'maybe' not a 'definately'.
Send a payment to them if you can, even if it's $20, just do it and remember to photocopy it too for record.
Second, you should consider drafting a letter, send it registered mail
to this CA and state your current problem and if there is any other
channels of negotiating your debt before appearing before a judge.
But honestly $1,500 is like a retainer and 30 mins of a lawyer's time.
And last but not least, email Johnny.
|
|
KillMensa
Newbie
Joined: 20/July/2004
Location: Canada
Points: 11
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 12:26pm |
|
It's for a Provincial Student Loan, actually.
I was under the impression that if a payment has been made within the
last six months, they can't bring you to court. And, of course, that
they HAVE to accept payments.
I've also been told that getting me to cover the court costs is highly unlikely, given the sum of the balance.
In the event that they baliff DOES show up with the subpeona, do I need
a lawyer? It seems a little redundant to acquire lawyers when I can't
even afford to pay off my debts in the first place.
On a somewhat related note, should I call the agency and record what
they've told me in case it does come down to court? Do I have to tell
the agent when they're being recorded?
So many questions, I know.
Thanks for the info.
|
|
KillMensa
Newbie
Joined: 20/July/2004
Location: Canada
Points: 11
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 12:27pm |
|
Sorry, just to reiterate, I didn't tell the CA that I was unemployed.
But I did tell him it was a temporary contract that I had just started,
which coincidently, ended the next day. But that's a story for another
day.
|
|
BigFatherA
Groupie
Joined: 21/September/2003
Location: Canada
Points: 253
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 1:16pm |
|
This does sound like typical CA bullsh*t. If it is a government
loan they are bound by guidelines (and typically won't sue if you make
payments).
If they due sue for $1500, its a small claims court amount. You
usually get served a small court claim by registered mail (and you
should retrun your response / defense by registered mail or expresspost
with delivery confirmation). You normally dont use lawyers in
small claims (cost), you represent yourself. Some courts will try
mediation and usually you end up with . . . a payment plan.
As to recording CA conversations, there a whole topic in it around here somewhere, including some software recommendations.
|
|
BigFatherA
Priest & Teacher
non carborundum illegitemi est
|
|
kwelmm
Newbie
Joined: 06/November/2004
Location: Canada
Points: 702
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 1:21pm |
If you are unemployed, it is unlikely that you will be served (by a process server) with a statement of claim. What would the point be?? There is nothing to garnish??? If they did sue you--you would be responsible for the court costs and, your credit would reflect a judgement has been made against you. Before any of this last ditch effort stuff happens....talk to the CA and let them know you are unemployed.
About recording...inform them if you are going to record the conversation.
|
|
Islander
Guest
Joined: 07/October/2004
Location: Indonesia
Points: 498
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 3:20pm |
Sorry, Kwel!
DON'T INFORM THEM IF YOU'RE GOING TO RECORD THE CONVERSATION.
You are not required to by law, and the recording will have much more useful information on it if they are just being themselves.
If it's a student loan, they have broken a great number or rules and regulations and, if they don't have a claim filed in Court, they have broken the law, no matter what kind of a debt it is.
$1500 is a Small Claims matter. At worst, a judgment would include filing fees and the like...not legal costs.
They're lying through their teeth, breaking the law and should be shut down. Fight back.
|
|
What? Me, worry?
Alfred E Newman
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 6:05pm |
Mensa,
It is a traditional scare tactic to see if you will respond.
Even if they could attach wages, the most they could attach is 15% of your gross (unless it is Crown debt, then it could go a bit higher). It would really depend on your level of income and financial detail. Since you are not employed, this answers your question.
as for youre credit being destoryed for 10 years.. there is absolutely no way tyhat a colelctor will know this. It is being said to you because it sounds "scary", and the collector thinks it might "scare" you into finding the cash by asking friends, family, or any potential source that you can scrub.
Johnny
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
KillMensa
Newbie
Joined: 20/July/2004
Location: Canada
Points: 11
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 6:48pm |
This is great. You guys are always so much help.
It is a Crown Loan. Luckily, it's the smaller portion of what I owe in entirety.
My final question (for now  ) is, can they start garnishing the second I start working? Obviously, I don't plan on being out of work for long.
Thanks again.
And again.
|
|
whereto?
Senior Member
Joined: 13/June/2004
Points: 292
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 7:19pm |
|
If its crown, that is federal not prov...then pay what you can afford,
fill out thier papers, and quit worrying...nothing will likely
happen. Bank risk is something else.
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 8:25pm |
Mensa,
For the amount of money you owe, as long as you commit to something and act in good faith, the HRDC will not press you. The collection agency may try to entice you, however, it wouldn't be to the best interest of the Crown to enforce as you would be acting in good faith.
One of the big problems is that it appears that the left hand does not know what the right hand is doing when it comes to HRDC and their use of third-party collection agencies. Some collectors break the rules - and yet HRDC says that they are unaware that these practices are taking place. If they were to become aware of bad collection practices, then it will be addressed.
Guess how many complaints are recieved per month? They say 10. To me, that means 100 or more.
Johnny
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
Islander
Guest
Joined: 07/October/2004
Location: Indonesia
Points: 498
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 9:09pm |
The answer to the question is NO.
They can't issue a garnishee order against your wages unless they have sued and won.
|
|
What? Me, worry?
Alfred E Newman
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 9:15pm |
If they sued, and won, they still couldn't issue a wage attachment. Mensa states that he or she is unemployed. There is nothing to attach. They would have to wait for an oportune time when it is discovered that he or she is gainfully employed - and meets the provincial criteria for wage attachment. If it is federal debt, then federal law kicks in. They will only attach wages if they feel that it is to their best interest. Mensa's unemployment history would be the ticket to his or her success for a federal issue.
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
Islander
Guest
Joined: 07/October/2004
Location: Indonesia
Points: 498
|
Post Options
Thanks(0)
Quote Reply
Posted: 24/January/2005 at 10:17pm |
Johnny, the question was whether they could slap him (her) with a garnishment upon starting work.
The answer is still NO. Not uless they sued, won, applied for and were granted the order.
|
|
What? Me, worry?
Alfred E Newman
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 25/January/2005 at 3:57am |
Islander,
You wrote:
"They can't issue a garnishee order against your wages unless they have sued and won."
They can't issue a wage attachment unless there is a "viable" avenue to do so, such as an income to attach. Your posting does not stipulate that.
Then you wrote:
"Johnny, the question was whether they could slap him (her) with a garnishment upon starting work.
The answer is still NO. Not uless they sued, won, applied for and were granted the order."
Your previous post did not include "upon starting work" and "Applied for the wage attachment". What you originally wrote can be interpreted that anyone can sue and issue a wage attachment (garnishee) JUST because they hold a judgment. That is not true.
In your original posting, you forgot to indicate that there must be an avenue to attach FIRST, and application must be made to file the execution order.
I responded to how it read, that's all. You are not wrong at all. You just forgot to include some detail to support it. 
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
kwelmm
Newbie
Joined: 06/November/2004
Location: Canada
Points: 702
|
Post Options
Thanks(0)
Quote Reply
Posted: 25/January/2005 at 5:22am |
Okay, Islander ....about recording--
I was coming from the perspective if I was at the end of the line I would want to know I was being recorded. You're right that they will probably act more like themselves if they do not know.
I guess if I was trying to catch them at their game, I might do things differently......
|
|
Islander
Guest
Joined: 07/October/2004
Location: Indonesia
Points: 498
|
Post Options
Thanks(0)
Quote Reply
Posted: 25/January/2005 at 1:40pm |
|
Sorry I wasn't clear, Johnny. The question was whether the person could start work and walk into a garnishment. I said that it wouldn't happen if there had been no claim.
You're right, of course.
It's impossible to attach wages if there are no wages. Just as there is no possibility of say, seizing your car, if you don't have a car. I didn't make that point.
In any case there is nothing for our friend to worry about at this point. |
|
|
|
|
What? Me, worry?
Alfred E Newman
|
|
Islander
Guest
Joined: 07/October/2004
Location: Indonesia
Points: 498
|
Post Options
Thanks(0)
Quote Reply
Posted: 25/January/2005 at 1:43pm |
|
Kwel, I was only concerned about the rights and obligations of the person we're trying to help.
It's impossible to describe just how utterly indifferent I am to a bill collector's emotional comfort during a telephone abuse session.
Maybe if we were talking about a human being, I might have considered how they would feel. |
|
|
|
|
What? Me, worry?
Alfred E Newman
|
|
kwelmm
Newbie
Joined: 06/November/2004
Location: Canada
Points: 702
|
Post Options
Thanks(0)
Quote Reply
Posted: 25/January/2005 at 2:25pm |
|
Islander, It's all good bud.
|
|
Being taken to court