Can a debt collector take you to court?

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Debt collectors can take you to court for unpaid debts but must act within the statute of limitations, usually about two years in Ontario from your last payment or debt acknowledgment. While various collection tactics exist, they can’t sue if they miss this deadline and must avoid harassment. For questions or clarification, reach out via phone, text, or live chat!

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Debt Collector Court Question

Can a debt collector take you to court? I’m wondering if debt collectors have the authority to take me to court. It’s concerning and I need clarity.

From: Anonymous Question
Location: Saskatoon, Saskatchewan (SK)
Category: debt settlement

Debt Collector Court Answer

Debt collectors have the option to take you to court for unpaid debts, but they need to act within a certain time frame known as the statute of limitations, which can be different depending on where you live. For instance, in Ontario, collectors usually have about two years from your last payment or when you last acknowledged the debt to start legal proceedings. While collection agencies have various methods to pursue debts, they lose the right to sue once this time limit expires. Importantly, they’re required to play nice—they can’t threaten or harass you along the way.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

Yes, debt collectors do have the authority to take you to court. If a debt remains unpaid, they can file a lawsuit to recover the amount owed. This action is governed by the Bankruptcy and Insolvency Act (RSC 1985, c 11). Specifically, section 67 governs the rights concerning the collection of debts, and section 68 outlines processes related to court proceedings for the collection of debts. Collectors must adhere to certain regulations, but they can initiate legal action if they believe it’s necessary to recover the debt. For more about the role of debt collectors, you can explore additional information on their authority and regulations.

From: OSB Helper

Related Questions to A Debt Collector Taking You To Court

Here are the top 5 most frequently asked questions related to the topic of debt collectors taking individuals to court, based on common concerns and search trends:

1. Can a debt collector take me to court?

Yes, a debt collector can take you to court if the debt is significant enough to cover legal costs and if they believe you have assets or income to pay off the debt[1][2][4].

2. What happens if I ignore a debt collector’s lawsuit?

If you ignore a debt collector’s lawsuit, the court may issue a default judgment in favor of the creditor, which means you automatically lose the case and must pay the debt[1][2][4].

3. How long do debt collectors have to sue me?

Debt collectors have a limited time to sue, known as the statute of limitations, which varies by province: 2 years in most provinces, 3 years in Quebec, and 6 years in Manitoba, Newfoundland and Labrador, Prince Edward Island, and the Territories[1].

4. What are the possible outcomes if a debt collector takes me to court?

Possible outcomes include successfully defending yourself, reaching a settlement agreement, having your wages garnished, or having your assets seized to repay the debt[1][2].

5. Do I need to respond to a debt collector’s summons?

Yes, you must respond to a debt collector’s summons within the specified timeframe (e.g., 20 days in Ontario) to avoid a default judgment[2][4].

If you have a question about debt see our debt questions or ask your own debt related question.

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