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Types Of Debt

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Once you fall behind on your credit card payments, it's easy to find yourself in a large amount of debt. At Grant Thornton Limited, we can help you understand what this type of debt means for you and how you should proceed.

What Is Credit Card Debt?

Credit cards are an unsecured form of revolving debt. They usually come with high interest rates and short grace periods. If you fail to make a payment within the grace period, you'll experience large fees and increasingly expensive interest payments that you can't afford.

These payments will only increase if you continue to use your credit card for day-to-day purchases instead of small purchases you can pay off quickly.

What if I Get Sued?

If you are sued then your creditor will have a document issued with the court initiating the lawsuit. This document will be served on you so that you become aware of the existence of your creditor's lawsuit against you. You will have an opportunity to file a defence with the court to defend your creditor's lawsuit. If you fail to defend the lawsuit then your creditor will obtain what is referred to as a default judgment against you. If you defend your creditor's lawsuit then the lawsuit will proceed towards a future trial date, and on the date of your trial one of two results are available - your creditor will be successful and obtain a judgment against you or you will be successful in which case no judgment is awarded against you.

What Are My Options?

If your creditors have filed a lawsuit against you, contact Grant Thornton Limited. They will review your financial situation and advise you to take one of four actions:

  1. File a debt management plan with a credit counsellor
  2. Debt consolidation
  3. File a consumer proposal
  4. File for bankruptcy

If you simply do not pay and do nothing, the creditor will report you as delinquent with the credit bureaus and ruin your credit rating. They will harass you at work, and at home, and they can also initiate legal proceedings where they can garnish wages, or put a lien against assets.

At Grant Thornton Limited, our licensed insolvency trustees in Vancouver and throughout BC can help you understand the options you have. We'll help you work towards a solution that both you and your creditors can agree on. Contact us to learn more about the legal actions you can take to end creditor harassment and resolve your debt in Vancouver or wherever you are in BC.

Whatever solution your situation demands, we offer individualized help that guides you through the process.

Contact Grant Thornton Limited

If you need debt relief in Vancouver or any of our five BC locations, visit us for a free initial consultation. You can also fill out ourĀ online form, and we'll happily answer any of your questions.