Will Unpaid Debts Simply (Poof!) Disappear?

In today’s economic climate, with Canadian households struggling to keep up with a constantly increasing cost-of-living and thousands grappling with the harsh realities of unemployment, it’s no surprise to learn that many are relying on credit to carry them from one financial pinch to the next. But as debt levels continue to creep, what happens when consumers can’t keep up with minimal payments, let alone being able to actually pay that debt down?

For some, when left between a financial rock and a hard place – the impulse is to simply ignore debt in hopes that creditors will simply give up and forget about consumer debt. While Canadian legislation has set a statute of limitations on how long creditors or collection agencies can chase consumers for unsecured debt, the implications of unpaid debt can impact your credit score or perceived credit worthiness for life.

David Gowling discussed the implications of lingering debt with Global News in an original article which was published on May 29, 2017.