When you have an unsecured debt that’s overdue, whether it’s from a trip to the dentist, a utility bill, or a credit card, the business or individual you owe can hire a collections agency to recover that debt or even sell it to a third-party debt buyer. Once a collection agency or a third-party debt buyer is involved, debt collection can take a nasty turn, as the letters become more threatening and persistent and the phone calls start to feel like a never-ending barrage. Some even use tactics like threatening language, contacting you late at night or early in the morning, and even contacting your friends or relatives about the debt. Debt collectors want you to believe that the only way to be left alone is the pay the debt right away, putting debtors in a tough spot.
No one goes to debt collection unless they’re in a tough financial spot. Whether it’s a loss of income or debt catching up with you, there’s a reason you can’t pay. You may be juggling multiple debts, trying to keep up with your mortgage payments or pay down money you owe your utilities while your credit card debt goes to collection. It’s a stressful situation and debt collector harassment only makes it worse.
In Ontario, you have rights when debt collectors call, but collection agencies are constantly a concern for consumer advocates. Several years ago, a CBC investigation into a debt collection agency operating in Ontario revealed the agency had been fined for breaking several regulations, including banging on the door and using threatening language to insist on payment.
Keep in mind that not all debt collection agencies use illegal tactics and they can contact you to insist on collecting their debt legally. When debt collectors start to call, you need professional help with financial problems to make the collection calls stop.
Licensed Insolvency Trustees in Ontario can hep you with a Consumer Proposal or bankruptcy. If declaring bankruptcy seems like a lot to take in, but you simply can’t pay your debts, it’s time to learn about Consumer Proposals in Ontario.
The GTA-based Licensed Insolvency Trustees David Sklar & Associates explain that a Consumer Proposal in Ontario helps you get out of debt without declaring bankruptcy. If you owe less than $250,000 as an individual, excluding your mortgage, a Licensed Insolvency Trustee can file a Consumer Proposal with your creditors. It puts a stop to all collection calls and legal actions against you (such as wage garnishments). The Consumer Proposal is drafted with the help of Licensed Insolvency Trustees like David Sklar & Associates and proposes a time frame for you to repay your debt and an amount you can afford. Your creditors then vote on the Consumer Proposal, weighted by how much debt you owe them. Interest also stops accumulating on the figure that you and your creditors agree to.
When you feel like you’re lost in the maze of debt, a Consumer Proposal is a clear way out. Get the help of a Licensed Insolvency Trustee sooner than later.