My mother ignored some credit card debt for almost a decade and she’s been receiving letters from Credit Bureau Services Canada every 2 years since 2020. The last payment made was in September of 2015. According to the letters, the initial balance between 2 cards totalled $12k, current balance $41k.
The debt goes back to, I believe, 2014, she tried settling it 2015 but couldn’t afford the payments and couldn’t come to an agreement with the creditors on a payment plan. She has since September of 2015 ceased acknowledging their attempts at communication.
The most recent letters came in September of 2024 claiming that their paralegal department secured a judgement against her on behalf of Canadian Tire Bank and that a writ of seizure and sale which acts as a lien against her property has been filed against her.
It goes on to say that the writ is “continually renewed” and that they’re at liberty to instruct a sheriff to sell her property.
Can sale of her property be forced to satisfy the debt? How would that work? If not, what would happen if she continued to ignore the letters?
I have about 40k saved and I would put it towards the debt if I meant saving my mom’s home, but I don’t want to do that if these letters are just scare tactics.
Questions Answered:
Can the sale of her property be forced to satisfy the debt?
Yes, if a writ of seizure and sale has been filed against her, it means that the creditor has obtained a court order allowing them to seize and sell her property to satisfy the debt.
How would that work?
The creditor would typically work with a sheriff or bailiff to physically seize the property and sell it at auction. The proceeds from the sale would then go towards paying off the debt.
What would happen if she continued to ignore the letters?
If your mother continues to ignore the letters and the legal proceedings, the creditor may proceed with the sale of her property, leading to potential loss of her home.
Potential Strategies:
Consult with a Debt Settlement Attorney: It may be beneficial to consult with a debt settlement attorney to explore options for negotiating with the creditor to potentially reduce the debt amount or establish a payment plan.
Consider Filing for Bankruptcy: Depending on the overall financial situation, filing for bankruptcy could be an option to discharge the debt and prevent the sale of the property.
Explore Debt Consolidation: Another strategy could be to explore debt consolidation options to combine the debt into a single manageable payment plan.
Things to Discuss with a Lawyer:
Legal Options and Rights: Discussing the legal options available to your mother, including potential defenses against the debt collection actions.
Impact on Credit Score: Understanding the potential impact on her credit score and financial future if the debt is not resolved.
Property Protection Strategies: Exploring strategies to protect her property from being seized and sold by the creditor.
Always consult with a lawyer.
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