Question: Hi There,
Due to my own error, I am currently in collections. I am being threatened with wage garnishee. They have not taken me to court as of yet; however, I am being harassed daily.
What action can the collections agency take when I am making consistent payments? I am paying what I can afford of $150/month. My outstanding debt is just over $5300.
I’ve been advised that they can’t do anything as long as I am making payments; however the harassment is making wonder.
Thank you for your help.
Answer: Legally, if you owe money, the collection agency can call you, even if you are making payments. Practically, if you are making payments, it is unlikely that they will take you to court, sue you, and attempt to garnishee your wages. They know that as soon as they take you to court you will stop paying them, and if they do get a wage garnishment you may then have no choice but to file bankruptcy in Ontario, and then they may get nothing.
If this is your only debt, and if you want to avoid bankruptcy, continuing to pay them is probably your best option. However, if you have other debts, or if you are tired of the harassment, it may be time to speak to an Ontario bankruptcy trustee about your other options.