In a situation when one does not file for bankruptcy, yet does not pay their debts, collectors start calling and mailing, then the creditors may file a lawsuit. But if one doesn't have any property or wages to garnish, what can happen and how long will it last? Is there any expiry date on unpaid debts in Canada?
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4Bankruptcy may be forced by debtors– littleadvCommented Jan 8, 2023 at 21:20
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@littleadv Do you mean forced by creditors? Would this result in something like a default bankruptcy?– sequenceCommented Jan 9, 2023 at 19:46
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yes, creditors, sorry. I don't know the technical term, but it would restrict your financial freedom significantly.– littleadvCommented Jan 9, 2023 at 19:50
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AFAIK bankruptcy does not restrict financial freedom, it only severely limits the ability to borrow.– sequenceCommented Jan 10, 2023 at 20:16
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1Depending on the Canadian laws, of course, it does very much do so. You'll need to report all your income, all your expenses, and the court may allocate some of your income to your debtors and forbid you from spending excessive income above what's necessary.– littleadvCommented Jan 10, 2023 at 20:59
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