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:

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