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Can a collection agency take you to court?

27 August 2018

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By: Kyle Harris BA.LLB. CAIRP, Licensed Insolvency Trustee

When you don’t pay your bills for a period of time, credit card companies or banks often pass along your debt to a collection agency. Most people know how nasty these agencies can be, but the question is, how much power do they have?

A collection agency has a lot of power if you ignore them for a period of time. They are able to sue you in court and get a judgement against you. If they get a judgement against you, then they can apply to the court to garnish your wages.

File a consumer proposal or bankruptcy

This can all be stopped by filing a consumer proposal or bankruptcy. Upon filing, you are granted a stay of proceedings. As long as you complete your duties under the bankruptcy or proposal, the collection agency will never be able to come after you again for these debts.

Should you have any questions about this topic feel free to reach out to our staff in St. Catharines, Markham, Barrie or any of our 11 convenient locations by calling toll free 1.800.268.8093.


Read our guide – CRA – Notice Of Collection Explained