Canadian debt for non-Canadian being sponsored, does it matter?

[waitingforfi]

I've searched the forums for an answer to this question and so far I've been unsuccessful.

My Canadian spouse and I were just about ready to send in our PR application when I (non-Canadian) was contacted by a collections agency about an alleged unpaid debt of $7k from 2012 when I was in Canada on a student visa. I have asked the agency to verify the debt in writing. It is very likely the debt has already been reported to credit agencies. My Canadian spouse is not involved.

Will this alleged debt (which originates from Canada, even though I am a non-Canadian) affect my PR application? Will the CRC be investigating my own credit history, in addition to that of my Canadian spouse?

Many thanks for any advice!

 

[Kysorb]

I don't think you credit score matters as the applicant or either the sponsor unless you are on welfare...

If anything you coming to Canada is going to make it easier for that collection agency.

Good luck, while the only two sure things in life are death and taxes, collections is a close third.

 

[Chevy23]

I don't think you credit score matters as the applicant or either the sponsor unless you are on welfare...

If anything you coming to Canada is going to make it easier for that collection agency.

Good luck, while the only two sure things in life are death and taxes, collections is a close third.

Are you saying that it matters if the applicant is on welfare???

I claimed welfare for a couple months in England but I am the applicant not the sponsor, does this mean my application is in peril?

 

[Ponga]

Are you saying that it matters if the applicant is on welfare???

I claimed welfare for a couple months in England but I am the applicant not the sponsor, does this mean my application is in peril?

No. It is only a requirement that the sponsor not be on welfare.

 

[rhcohen2014]

Are you saying that it matters if the applicant is on welfare???

I claimed welfare for a couple months in England but I am the applicant not the sponsor, does this mean my application is in peril?

welfare is an issue for sponsors to receive approval. the option c will confirm if it's been drawn on in the previous 12 months. if an applicant has been on welfare, i don't think they care, especially if it was more than 1 year ago. they just want to know you are able to work, and have plans to do so. they will want to know neither of you will be using welfare in canada. if the applicant ends up using welfare within the first 3 years, the sponsor will be responsible to pay it back.

 

[Chevy23]

Ok thanks guys that's put my mind at rest!!!!

My sponsor has never been on welfare and we already have SA

I was only on welfare for a little while when I came back from Canada and couldn't find a job, I'm now working full time in England and have been working full time in Canada as well

Again thanks for the info

 

[Rob_TO]

My Canadian spouse and I were just about ready to send in our PR application when I (non-Canadian) was contacted by a collections agency about an alleged unpaid debt of $7k from 2012 when I was in Canada on a student visa. I have asked the agency to verify the debt in writing. It is very likely the debt has already been reported to credit agencies. My Canadian spouse is not involved.

The debt will not have any impact on your PR application.

What was the exact date in 2012 that the last payment was made against the debt (or open account at the time), and what province was it in? In most Canadian provinces there is a 2-year statute of limitations for collecting debts. Once 2 years has gone by with no recorded payments, and no action has been taken to go to court... the debt no longer needs to be paid and you can never be sued for it.

Here is some info you might want to read (from Ontario in particular): http://ontariodebt.org/ontario-debt-statute-of-limitations/

 

[Ponga]

The debt will not have any impact on your PR application.

What was the exact date in 2012 that the last payment was made against the debt (or open account at the time), and what province was it in? In most Canadian provinces there is a 2-year statute of limitations for collecting debts. Once 2 years has gone by with no recorded payments, and no action has been taken to go to court... the debt no longer needs to be paid and you can never be sued for it.

Here is some info you might want to read (from Ontario in particular): http://ontariodebt.org/ontario-debt-statute-of-limitations/

Wow. That's very generous, considering the statute of limitations in the U.S. is typically 7 years...and the spouse can sometimes be liable for the past debt as well!

 

[waitingforfi]

Thanks everyone for your replies.

Rob_TO, I actually learned about the 2-year limitation a week ago for Ontario and was surprised, given how long the limitation is in the U.S. as you state. In fact, it's likely that the collections agency only contacted me now because my 2-year limit is coming up in the next few months. The debt will always remain and can be packaged and sold to other collections agencies of course, but at least they cannot due, put a lien on your assets, or dock your salary.

Thanks again folks!

 

[Alurra71]

..and let us not forget that in the US, not only is it 7 years to start, they only need to pay the credit reporting agency a mere $1 to have it continued to be listed on your credit report for another 7, so on and so forth.

 

[Ponga]

..and let us not forget that in the US, not only is it 7 years to start, they only need to pay the credit reporting agency a mere $1 to have it continued to be listed on your credit report for another 7, so on and so forth.

Yes, but the $1 has to have been paid by the debtor. The collection agency can't pay it on the debtor's behalf, just to reset the statute of limitations.

 

[canuck_in_uk]

The debt will always remain and can be packaged and sold to other collections agencies of course, but at least they cannot due, put a lien on your assets, or dock your salary.

Here's a crazy thought: you could actually pay your debt off....

 

[Alurra71]

Yes, but the $1 has to have been paid by the debtor. The collection agency can't pay it on the debtor's behalf, just to reset the statute of limitations.

If the current agency has legally purchased the debt, they can pay the $1 to have it listed on your credit report. I have been fighting a company that has had something on my credit report for over 14 years now. Because I made 1 payment to them roughly 12 years ago until I could figure out if it was actually a debt of mine. (they weren't very forthcoming with information regarding it but excellent at scaring me half to death as a newly single mom of 3) It turned out to be a car loan that my ex had gone ahead and somehow managed to get in my name without my signatures and then managed to default and have the car respossed and I didn't even know it was going on. Needless to say, this company has been a thorn in my side for the last 12 years easily and apparently they aren't even the original debtor, but they are known for their less than stellar behaviour on the phone. I actually had one lady call me and flat out call me a f(^#$@ing liar and told me I should go and put myself on the street corner to pay this debt since even if it was allegedly my ex spouses debt using my information illegally I wasn't worth it if he had to divorce me in the first place and I might be able to make enough to pay a minimum payment monthly if I hook. Needless to say I was not at all pleased with this lady and sent them a certified letter to officially request they stop all further phone contact and only contact me via snail mail. They continued calling using VoIP numbers that showed up as different places and companies. They have not bothered me since I registered a complaint with the BBB and moved to Canada.

I think I somewhere lost the point of this thread .... *wanders off dazed and bewildered* ....

 

[user828]

If its an ON debt, the SOL is 2 years ( they can legally sue you within 2 years ), rest of provinces are 6 yrs AFAIK. You can hire a pro to pay of 20% of whats owed and get it over with

For more help - http://www.canadian-money-advisor.ca/canadian-money-forum-menu.html

Its best to clear it out, I did that 4 years ago ( luckily my ebt was all from ON ) - now I got 800+ score on Credit Report ( you have to build with tact ) and no issues with mortgage/credit etc

 

[waitingforfi]

canuck_in_uk,

That is certainly my intention. Like many folks who end up being contacted by a collections agency, my case is not clear-cut. But as you may know, collections agencies are less than scrupulous about how they collect, the nature of their demands, etc. And of course you can't pay a debt with money you don't yet have. I was merely concerned that this situation might have an impact on my ability to gain permanent residency, and it doesn't look like that's the case.

Thanks for the replies, folks!