Legal Question in Credit and Debt Law in California

Cross-border collection

I owe two debts in Canada, one to a credit card company and one to a loan company. I am willing to pay when I am able, but cannot make any payments at this time. The companies are threatening to send my debt to U.S. lawyers to garnish my wages and/or to place my debts in the hands of an American collection agency. Can they do this?


Asked on 11/05/02, 3:35 pm

2 Answers from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Cross-border collection

Thanks for your posting. The answer is yes, they can hire local counsel where you live to sue you and litigate the case or advance towards a judgment or trial. In my experience, however, many companies threaten this, but it is rarely cost-effective to spend money to litigate these disputes. You may be facing a collection agency, however, and you should examine all your options, including bankruptcy.

If you have more questions or need more information, please feel free to email me directly, and I'm happy to help in any way that I can.

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Answered on 11/05/02, 4:58 pm
Martin Lathrop Russakow, Ryan & Johnson

Re: Cross-border collection

As Mr. Miller exlpained, collections efforts can be effectuated here. I suggest you attempt to continue a dialog with the collectors to stave off a lawsuit and the collections consequences that can follow a judgment.

Good luck to you-Martin

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Answered on 11/05/02, 7:34 pm


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