BONNIE ASKED: I am getting out of an abusive relationship. I don't have money to pay any of the collection notices I have gotten. What should I do?
This is a very honest question and we're grateful that someone asked it so that we could put their mind at ease. Your creditors cannot put you in jail for owing money.
Myth: If you file a consumer proposal your creditors will continue collection action.Fact: When you file a consumer proposal all creditor collection action is stopped immediately.
Once you file for bankruptcy, all creditor action stops.
This article is provided by Family Services Perth-Huron, a United Way member agency and an accredited member of both the Ontario and Canadian Associations of Credit Counselling Services. If It Sounds Too Good To Be True... By Phil Brown
BEN ASKED: I have a lot of debt that's gone to collections but that was a few years ago. How do I go about paying it all back?
Government debts including income tax, HST and payroll source deductions are no different than any other debts you may owe.
Dealing with your personal debt problems on your own without any professional assistance is the only way to maintain your current credit rating.
Often the most affordable option with minimal impact on your credit is a consumer proposal. Why? It will stop all collection action and allow you and your creditors to settle on an amount to pay back.