hit the wall The Journal of Montreal

Over-Indebtedness: Prohibited Practices and Solutions

Do you have debts and fail to pay them?

If so, expect multiple communications from the person, company, or institution you owe money to… But even though you owe them money, not everything is allowed.

Prohibited Practices

If you receive a call or message from a person, business or entity to whom you owe money, some practices are strictly prohibited.

For example :

  • Make believe that the police can arrest or imprison you because of your debt.
  • Lying or misleading you in any way to try to recover the amount owed.
  • Use a document that looks like a court order or a document issued by the state or government agency.
  • Communicate with them in any way if you have written them asking to speak to your attorney.
  • Reclaim the sum from someone other than you or your guarantor.
  • Harass, threaten or intimidate you.

Banks, trust or loan companies, and insurance companies must also follow very similar rules when communicating with you about debt collection.

What you should know about the Price Accuracy Policy

Informative Text – This text does not constitute legal advice; it is recommended to consult a lawyer or notary for such advice. Éducaloi is a non-profit organization whose mission is to inform Quebec residents, in clear language, about their rights and responsibilities.

Solutions against over-indebtedness

If you are over-indebted, you have other solutions than bankruptcy. In particular, depending on your personal situation, you can:

  • Try to negotiate an agreement with the people you owe money to adjust the dates and amounts of your payments to your budget.
  • Try consolidating debt with a financial institution.
  • Register for voluntary deposit at the clerk of the courthouse closest to you.

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