Can Creditors Seize Your Assets? What Can Creditors Do If You Don’t Pay?
Can Creditors Seize My Car, Furniture or Other Assets?
If you owe creditors money, it is only natural to ask whether they can force you to pay it back.
In short, they can, and they will unless you find some other way to deal with the debt.
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
Creditors may help themselves to your money in three ways:
- Garnishing money from your paycheck;
- Taking your personal property;
- Seizing financial assets.
All of this must follow the due legal process, of course.
But eventually, the creditors will have the right to take your belongings or money, unless you find a way to repay or take other steps.
None of this happens straight away.
If you miss a payment to a utility company, they won’t immediately send in the bailiffs.
Instead, they will send a letter, then another letter, and then they will inform you that they’re handing your case to a debt collection agency.
When that happens, trouble can start.
You’ll begin receiving frequent calls and letters threatening you unless you repay.
You get a bill for the money you owe and extra debt collection agency fees on top.
Your creditors may also launch a legal case against you that requires you to show up in court and explain why you haven’t paid them back.
Naturally, all of this is rather distressing and the last thing that you want when you owe people money.
It stops you from focusing on the task of repayment and causes a lot of fear and concern.
Most people who find themselves in this situation want to receive harassing calls or go to court.
Furthermore, they don’t want their friends, colleagues, and family to know that they have debt issues.
They fear that debt collection tactics, like wage garnishment, will make them look bad in front of their boss.
Nobody wants to live with the stigma of being seen as a person who can’t keep tabs on their finances (whether it is true or not).
Holding Off Debt Collection Agencies
A lot of people who owe money can hold back debt collection agencies for a time.
Eventually, though, they will get what they want – either wage garnishment or seizure of property.
And when that happens, it can radically alter your life.
Many people, therefore, wonder what they can do to make the problem go away.
The good news is that there is.
If you can’t repay the debt right now but are under pressure to do so, you can consider using bankruptcy experts to help find a way out of the problem.
These professionals provide you with options and ensure that debt collection agencies abide by the legal process.
When you get in touch with us, we evaluate your position and then present you with a range of options to help you control your debt situation.
In some cases, we can liaise with the debt collectors on your behalf so that you no longer have to receive phone calls demanding money.
It gives you peace of mind and provides you with a clear route out of your predicament.
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?