Confirm what the Statute of limitation is in your Province. Here in Ontario it is 2 yrs. If you have not made a payment in that time or acknowledged the debt in writing....they will not be able to sue. Without a judgment from the courts they can seize nothing or garnish nothing. They are blowing hot air to scare you into sending money. Seems if debt is that old it has been bought by the collection agaency for a few cents on the dollar hoping to intimidate you into paying something.

The debt is $10000 and has not had a payment for
4 years.
It is my wifes debt and she has a meagre $70 CPP per month
I have heard from a source that seizure of property is not possible

In NB.

First off it is only a threating letter....If you recieved no Statement of Claim....no suit has been started, Also if the collection agency bought the debt they can now sue as it is theirs now.
How old is it , when was last payment made on it and how much is debt.
All factors to consider before worring about being sued.

Received a letter from Cindy Cohen Barister and Solicitor for CBV Collections.
I always thought it was the initial credit company (Canadian Tire Mastercard) that could start legal proceedings,not a collection agency.
I am in New Brunswick.