Unfortunately, the laws are on the side of the creditor, when you've signed a contract for debt with them. If they've hired a lawyer, or have an inhouse lawyer, that means that the debt is substantial enough for them to sue on.
If they sue you and garnish your wages, you'll have to pay a certain amount to the collection agency / original creditor.
If they've got you in the cross hairs, they're probably pretty serious about collecting.
I've got a lot of answers regarding , credit bureaus, collection agencies, creditors and your rights in my Credit Repair Ebook for Canadians.
I would recommend that you start finding out the worst that could happen in this situation.
I would also recommend that you open up a dialogue with the creditor and start talking to them. The worst thing to do is not communicate. That just suggests to the creditor that you're a "dead beat", as they say in their terminology.
Another option is to offer to settle the debt for a fraction of the owed amount. IF they're hiring a lawyer, the lawyer doesn't work for free.
Bottom line, by finding out the worst that can happen you'll know what to expect should the creditors decide to sue you. The courts will usually rule in their favor unless you can prove that the creditors did something outside of the contract.
My ebook is a good investment to learn how the system works and how to work in this situation as well as stay safe from here on in.
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