merged with more information

merged with more information

Thank you again!

New information:

The pretrial settlement conference was today. The Judge seemed to really understand that I did not have a lot of money to work with, and that I wanted to pay off the debt. She asked me about my new spouse, their job prospects, and realized that we want to pay it down the moment we could. The Judge also kept saying that she was surprised that BMO was wanting either 18k by June 20 or 1k a month, when we are only getting 1 500 or so a month after taxes.

So, got a judgment on me, but very gratefully was able to pay 100/month with other terms.

Thank you all again for your assistance. If I *do* have to go bankrupt at least this way I will be able to avoid garnishee as long as I'm not in default.

Make sure you ask for no futher interest while not in default at the pretrial settlement conference and the trial, should it come to that. BMO probably doesn't know you've legitimately forfeited ownership in the house, so they may be more agreeable when they learn of it. Even so, they may not be disposed to not seeking further interest. Hard to say. But make sure you ask the judge to consider that proviso should it proceed to trial. The justice, as I said, will be far more amenable to granting you that favour if you outline your situation.

If you included the amount you were willing to pay and list the other obligations that make those low payments necessary, it would put the creditor on notice to that they need to reduce their expectations at the settlement conference and avoid a judgment being on your credit files.

BMO probably will still reject $100 a month because, who wants to wait for 20 years for their money? Nevertheless, the trial judge, if there is one, will see details of your sutuation and conclude you're doing the best you can with what you've got. That makes a world of difference from how they view someone acting irresponsibly. It puts you in good stead for receiving payment terms far easier than anything BMO would have accepted.

Thank you both, footloose and DanielB!

Yes, the credit card default is approximately eight months old, and I have filed a claim of defense, today. After looking over my resources, it appears that the household can spare a hundred a month towards this amount. That would mean a twenty year term, however that is what presently I can afford to pay.

Bankruptcy is scary to me, however if *eventually* I have to go that route, then so be it. I would MUCH rather pay off the full amount, with interest if need be though. NOT abandoning the sponsorship is far more preferable, in my eyes, because there would be an additional person working towards that debt.

Again, thank you for your input. GREATLY appreciated.

It would be prudent to take documentation like pay stubs, account statements from other debts, and child support orders to back up your impoverished financial situation when it goes to pretrial, and even more so, if it succeeds to trial.

$22K is approximately the Federal Government's low income cutoff point for classifying a single person living in a large urban area as being below the "poverty line."

When you attend the settlement conference, BMO and their paralegals may not be amenable to settling on favorable terms even if you demonstrate your plight.

If they're adamant about their pound of flesh (or at least 15 ounces), you'll have to go to trial. If so, that's where you'll stand the best chance of getting easy payment terms. I can't promise you anything but clerks tell me some get as low as 10 bucks a month (that's not a misprint) with no interest while not in default of the payment order. I can't promise you'll get anything that low, but psychology is often as important as legal knowledge. Make sure you display a mature, contrite and responsible attitude. Anything else and I guarantee you'll end up with "Judge Judy" on a bad hair day.

I didn't include filing with the defence a repayment proposal because, if you proposed something lke $30 to $50 a month, it might do more harm than good unless it was more significant. Amounts that low might be more productively introduced at the settlement conference or trial.

http://www.ontariocourtforms.on.ca/forms/scc/09a/SCR-09A-Sep10.pdf

Have basic documents about your income and debts in hand - just in case - and tell the judge BEFORE he/she makes a payment order about your ability to pay. You can still appeal an order that's too stiff later on, but you''ll have to file a motion with a Form 20Q (if memory serves me), so it's best not to have to go there.

Be certain to file a defence. With respect to what to enter on the Statement of Defence (Form 9A), try to be careful because the justice will obviously see it should it come to trial. Anything frivolous or inane will annoy them. Keep the defence simple and vague such as you dispute the amount owing.....or whatever.

The principal thing is you want to avoid having an onerous judgment rendered against you - at all costs. They can last forever and be sold to 3'd parties. True, with your other debts and lack of assets, on paper, you're almost "judgment proof;" nevertheless, you could be still be eventually be forced into bankruptcy. Keep in mind the judgment order would almost certainly include post judgment interest at the Mastercard rate of perhaps 20%, if you don't show up for trial. The $25K limit is the Small Claims Court limit on the statement of claim. After that it can build up indefinitely.

I assume that the default on the Mastercard was less than 2 years from when the claim was filed in Court.

Good News!!!

There is a boatload of information on the internet regarding Small Claims Court in Ontario. You can download all this information from the following website

http://www.attorneygeneral.jus.gov.on.ca/english/courts/guides/

When you receive a Statement of Claim, it is absolutely imperative that you file a Statement of Defense. You have 20 calendar days to do this. The guides referred to above will provide you with a detailed step-by-step procedure as to how to prepare your defence. You can also download Defence Form 9A

You will notice on Form 9A that you have 3 possible defenses.
1. Dispute the entire claim.
2. Admit the claim and make a proposal of terms of payment of the amount claimed.
3. Admit part of the claim, make a proposal of terms of payment of that part of the claim and defend the remainder of the claim

Once you have completed this Form, it must be filed with the clerk of the Small Claims Court shown on the Statement of Claim within 20 days. If time is of the essence, I strongly suggest that you hand-deliver this Form to the clerk of the Court. Be sure that you take the original Defence Form 9A together with 2 copies. The clerk will stamp all 3 copies with the Court stamp showing date received by the Court, give you back a stamped copy for your records, mail one copy to the plaintiff and retain one copy for the Court's file.

After this is completed, you will receive from the Court a letter stating a date and time when you

and the plaintiff will have to attend a Pre-Trial Settlement Conference. This Conference is mandatory before any matter goes to trial. The Conference will be scheduled by the Court and will be held within 90 days from the date you filed your Defence with the Court. The purpose of this Conference is to try to resolve this issue one way or another. If you wish to propose a repayment plan or have the plaintiff reduce the amount of the claim, this is where it is done. The Conference will be presided over by a judge of the Court. Any decision agreed to at the Conference will be registered in the Court and you will be legally bound by that decision. If both parties cannot come to an amicable agreement, then the matter is set down for trial. A different judge will then preside at the trial.

At your Pre-Trial Settlement Conference, I would definitely raise the matter of your sponsorship program and when it is completed, how your sponsored person could assist you in repaying this debt. This could be the "deal maker" at the Conference.

At trial, both the Plaintiff ( BMO ) and the Defendant ( that's you ) will plead their case. The judge will then make a ruling. If the judge makes a ruling in favour of the Plaintiff. this is known as a "court judgement". It is simply a piece of paper saying that the plaintiff has been awarded a judgement of $X dollars, nothing more, nothing less. This judgement will be registered in the court.
Both Equifax and TransUnion ( credit bureaus ) will pick up this judgement and show it on your credit report. It will remain on the Equifax and TransUnion reports for 6 and 7 years respectively regardless whether you pay off the judgement or not.

If the plaintiff wishes to begin enforcement proceedings, they must bring a Motion before the court in order to garnish bank accounts and wages. In Ontario, 20% of your net wages ( i.e. net of withholdings such as income tax, CPP and EI ) can be garnished. The plaintiff can also bring a Motion before the court for a "Writ of Seizure". That means that the plaintiff can place a lien on any real estate that you own and force the sale of that asset. In reality, the lien is placed on the asset ( i.e. real estate ) and nothing happens until the owner of the property has to refinance any existing mortgage or wishes to sell the property. The lien has to be satisfied at this time. The plaintiff cannot place a lien on real estate that you do not own. However, if you previously owned real estate and the sole purpose of the transfer, usually a non-arms length transfer to someone to whom you are related to by blood, marriage or adoption, was to avoid the placing of a lien by the plaintiff, then the plaintiff could attack this transfer under the Fraudulent Conveyances Act. However, this action would have to be commenced in the Superior Court of Justice, not in Small Claims Court.

Good Luck and have a GREAT DAY

Thank you to the person who whispered in my ear in private messages here. I do dearly appreciate.

Now, I have a couple more questions, please?

What happens to a person when a judgment is levied against them? What will I have to expect when the axe falls?
How long do garnishees take to process?
Can BMO take a house not the debtor's?

I want to let BMO know that I no longer have the house, or any equity in it and that I would like to do payments over the course of a few years, but I have a feeling they'll poop all over that proposal. The separation agreement has the ex get the house. The ex got the house, but took his sweet time setting up the transfer and now it looks bad.

I don't know, guys. I would like some idea on what to expect, if at all possible, please? Maybe someone with a suggestion or two? Thank you ever so kindly for your assistance in this matter.

EDIT: Also, I am still a little unsure as to how a lien really does work. Any answers there, please?

I heard the book wolf at the door was being used for beverage coasters.

Hello!

Just got a friendly letter from the Superior Court of Justice, Small Claims Court for a BMO MasterCard. There is a claim number on it, so I know that it's "real" rather than one of those "fake-out" claims.

I'm in Ontario, the claim is for 20k or so.

Just have gone through a divorce, wherein I had to give up property to the other person within the past few days, actually. So I do not have any real estate. I have made a lump sum payment for child support covering the next two years for our offspring. There is no other money except through my job.

That job runs approx. 20-22k a year, and is currently not having any wage garnishees at this time. (The plaintiff does not know where I work, nor my phone numbers, only where I live.)

Still owe 15k or so on another credit card that I have *just* been able to make minimum on. They are threatening to increase the annual interest rate, which means that I will probably not be able to pay that one either in the near future.

Because of an ongoing sponsorship process, which will continue for about twelve more months, I am quite unable to claim bankruptcy at this time. The sponsored person has indicated that they are willing to help pay these balances off when they are legally able to work in Canada and are drawing a wage.

If I had the money, I would gladly pay the amounts I owe. That is not the case, however. What I'm looking for is a step-by-step guide on how to file a defense, including what words I should use in it. I have the book, "The Wolf at the Door" by Mark Silverthorn, but it doesn't seem to have what I'm looking for in it.

If you have *ANY* suggestions on what I should do or where I should go, would very much appreciate the input.

EDIT: Again, if you have *any* observations or suggestions or any other question to this particular post, please do not hesitate to ask/explain. Again, I REALLY APPRECIATE this forum and the good folk who inhabit it.