Unsecured creditors can sue you if you don’t spend your bills.

Unsecured creditors can sue you if you don’t spend your bills.

To learn more by what to complete in the event that you don’t Pay tipsheet and seek legal advice if you are sued, see the What Creditors Can Do.

Seizing home

Creditors can take action to seize your home by way of an enforcement that is civil with no need for a judgment if:

  • you have got purchased products by way of a time product product product product sales contract and you’re behind or haven’t made any re payments
  • the creditor is guaranteed by a chattel home loan along with re re payment arrears
  • your debt is lease owed up to a landlord

Stopping a seizure of home

Confer with your creditor straight away. When you can start having to pay a number of the money which you owe, the creditor may keep the seized home with you.


Garnishment is just an appropriate procedure that the creditor may take after the court honors a judgement against you. The creditor asks the court to make the cash (garnishee) your debt from quantity of sources like

  • your income cheque
  • your account at a lender such as being a bank, treasury branch, trust business or credit union
  • records receivable (money because of you by other people)

Banking account garnishment

A creditor who garnishees your money is permitted to use the whole sum of money that you borrowed from.

Objection to a garnishment

To get rid of the garnishment procedure or even to make modifications into the garnishment because of the creditor, a court must be obtained by you purchase. You shall probably require an attorney to take action.

If your creditor sues you

A creditor has got the choice of suing you within the Civil Division of Provincial Court (previously called little claims court) or perhaps the Court of Queen’s Bench.

If you’re sued, you are offered having a civil claim. Don’t disregard the claim.

If you’re offered with a civil claim:

In the event that you be given a civil claim in Alberta, you’ve got 20 calendar times through the time you might be offered to register the dispute note. In the event that claim is offered you will have one month to respond on you outside Alberta.

If you don’t register a legitimate dispute note inside the needed time or can be found in court at the time associated with the hearing, the court will award the creditor by having a judgement against you.

As soon as a judgement is given the creditor may take steps that are several have the cash which you owe:

  1. Join a writ of enforcement utilizing the private Property Registry.
  2. Garnishee your wages, bank reports or records receivable.
  3. Seize your premises.

Owing cash to a bank

The bank can use its right of set-off to recover the money if you have an overdue debt owing to a bank. The proper of set-off permits a bank to withdraw cash from your records to cover your overdue financial obligation. The financial institution need not offer you notice or pose a question to your permission before you take this step. The financial institution need not ask the authorization associated with court.

Banking institutions could use their right of set-off to get payments that are overdue bank cards, loans, overdrafts or credit lines. A bank may withdraw cash it to your debt that you have on deposit in any of its branches and apply. The financial institution need not keep hardly any money in your account.

After your judgement is compensated

When a judgement has been paid by you in complete, the judgement must be released during the Court of Queen’s Bench and also at the private Property Registry. Check always to ensure this is accomplished. Its also wise to allow the credit bureau understand that you’ve got compensated your debt. They are going to enter this given home elevators your personal credit record.

To learn more, start to see the What Creditors may do in the event that you Don’t Pay tipsheet.

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