3.7 Your client is behind on their bills (mortgage, loans, etc.)

Debt can spiral quickly. Your client may be overwhelmed by the amount of debt and number of debtors they have.

Information to collect from your client:

• What kind of debt is it? For example, a mortgage, car loan, credit card, overdue bill, etc.
• Are they making the payments on schedule or are payments overdue?
• Has anyone tried to collect the money they owe? Have the credit card companies been calling? Are debt collectors calling them?
• What steps have they taken to deal with the debt?

Potential legal issues:

• Bankruptcy -- A person or company can file for bankruptcy, which frees them from the obligation to pay some or all of their debts. To file for bankruptcy, a person or company must owe at least $1000 to one or more creditors and not be able to pay the debts as they are due.
• Lawsuit -- A creditor can sue a debtor in civil court to collect the debt owing. Small claims court in the Alberta Court of Justice can deal with claims up to $100,000. Larger claims must be filed in the Court of King’s Bench. 

Helpful links:

• Free legal information from CPLEA about consumer, money, and debt laws
• CPLEA’s Help with Debt Alberta tool – to help Albertans struggling with debt and looking for help
• Alberta Debtor Support – supports for Albertans in debt
• Alberta consumer complaints and investigations – including filing a consumer complaint