Automatic Bank withdrawals on defaulted line-of-credit

CGB · Nov 1st, 2007, 08:38 PM

I have an unpaid line of credit with my bank which also has my mortgage. I have not given a payment since 2002 having been told that if you wait 7 years your debts are forgotten about. They have started to transfer $200 - $300 out of my mortgage account automatically every month leaving my automatic payments to strata and property tax unpaid due to insufficient funds. So I am paying penalties for unpaid strata and taxes which would usually be covered if they didnt take out their payment which is not authorized by me. Can they do this?? and what can I do about this??
This is happening in Canada.

Nov 2nd, 2007, 08:21 AM

If within the same bank the account agreements sometimes allow that.

Best to separate funds and don't leave any funds in the bank where you are not paying.

Debts don't just go away but after so many years there are statute of limitations defenses.

CGB · Nov 5th, 2007, 07:49 AM

How many years before the statute of limitations comes into effect. I heard 7 years? Is this true? I was told this is a good way to avoid going into bankruptcy and avoid paying the creditors.

Nov 7th, 2007, 03:02 PM

See debts and judgments: http://www.worldlawdirect.com/article.php?id=1758

Nov 1st, 2007, 08:38 PM	#1
CGB Junior Member Last Online: Nov 5th, 2007 08:52 PM Join Date: Nov 2007 Posts: 2	Automatic Bank withdrawals on defaulted line-of-credit I have an unpaid line of credit with my bank which also has my mortgage. I have not given a payment since 2002 having been told that if you wait 7 years your debts are forgotten about. They have started to transfer $200 - $300 out of my mortgage account automatically every month leaving my automatic payments to strata and property tax unpaid due to insufficient funds. So I am paying penalties for unpaid strata and taxes which would usually be covered if they didnt take out their payment which is not authorized by me. Can they do this?? and what can I do about this?? This is happening in Canada.

Nov 2nd, 2007, 08:21 AM	#2
Unregistered Posts: n/a	Re: Automatic Bank withdrawals on defaulted line-of-credit If within the same bank the account agreements sometimes allow that. Best to separate funds and don't leave any funds in the bank where you are not paying. Debts don't just go away but after so many years there are statute of limitations defenses.

Nov 5th, 2007, 07:49 AM	#3
CGB Junior Member Last Online: Nov 5th, 2007 08:52 PM Join Date: Nov 2007 Posts: 2	Re: Automatic Bank withdrawals on defaulted line-of-credit How many years before the statute of limitations comes into effect. I heard 7 years? Is this true? I was told this is a good way to avoid going into bankruptcy and avoid paying the creditors.

Nov 7th, 2007, 03:02 PM	#4
Unregistered Posts: n/a	Re: Automatic Bank withdrawals on defaulted line-of-credit See debts and judgments: http://www.worldlawdirect.com/article.php?id=1758

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