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.
- 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
Last modified: Tuesday, 13 June 2023, 6:04 PM