| Question: |
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The person that is handling my account is threatening to take me to court if I don't pay the amount that they want. I am going to try and pay some amount. She doesn't want to accept it. She said that if her collection agency takes me to court, they will add all the legal fees they have to pay and make me pay it on top of what my debt is. Can they do this?
Also, the car I have I use it to get to work and I got it after so many years after my loan so the loan that went to the collection agency must have been unsecured. It is being financed privately. I owe approximately 8000 still. Can this be taken away from me if I would be taken to court?
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| Answer: |
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If a creditor takes you to Court to collect a debt, they can ask that the legal and Court costs be added to your debt and you would be required to pay those costs.
In Alberta, if the car has no liens against it or has not been used as
collateral for a loan, and is worth less than $5,000 the creditor cannot
seize it after they have sued you. If the vehicle is worth more than $5,000, they are entitled to seize the vehicle, sell it, give you $5,000 and keep the rest.
If the vehicle is financed privately, there should be a signed and
registered security agreement against the vehicle if the lender wishes to
protect their interest in it.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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