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Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 101426
Experience:  Lawyer
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I have received a letter from the court saying that I have

Customer Question

I have received a letter from the court saying that I have been suid by a bank, due a car loan... They are asking for the full loan payment, and at the moment I'm not able to do it, I agree to pay by the good, and am not refusing to do so. But I have no idea about my duties, rights or how proceed with this... I need some advice about it, to know how to proceed with this issue...
Submitted: 2 years ago.
Category: Canada Law
Expert:  Debra replied 2 years ago.

When you say you've been sent a letter do you mean you have been served with a Statement of Claim?

Did you receive this by mail?

Or was this a letter from a lawyer?

What province is this please?

Customer: replied 2 years ago.
This was from a lawyer, in person, I'm in Alberta (Calgary). Yes, it's a Statement of Claim from the court of queen's bench of Alberta
Customer: replied 2 years ago.
The lawyers are Lawson Lundell LLP, barristes and solicitors...
Expert:  Debra replied 2 years ago.

So you can contact the lawyers and state you want to come to a settlement.

You can provide the same options you did to the bank and see what they say.

If they say no then you have to put in a statement of defence if you want to defend the lawsuit.

Your right is to have a fair trial. But your obligation is actually to pay in full because that is what you agreed to do if the loan went into default.

Customer: replied 2 years ago.
I proposed those options thru the lawyers...I sent the proposals and they supposedly sent it to the bank, and the bank refused all of them...
Expert:  Debra replied 2 years ago.

Then you can put in your statement of defence and hope that the bank changes its mind when there is a pre-trial settlement conference before the trial.

Customer: replied 2 years ago.
The lawyer told me yesterday that if I can't pay the debt in full, I may be able to enter into a payment plan with the bank if I will also agreement s8gn8ng a Consent to Judgment, which will be registed against my property to secure the payment plan... this avenue is less costly than if the bank were to obtain judgment against me by a regular process...and now they are waiting for a payment proposal and confirm that I will sign the Consent to Judgment registed against my property...
Customer: replied 2 years ago.
This is their lawyer (the bank's lawyer)
Expert:  Debra replied 2 years ago.

That makes good sense.

So if that is OK with you then go ahead and propose the payment plan.

Customer: replied 2 years ago.
But, what kind of payment plan, if I have proposed three different options
Customer: replied 2 years ago.
Or what do you suggest as a payment plan, different to my previous proposals?
Expert:  Debra replied 2 years ago.

But that wasn't when you were going to let them register the judgment on title was it?

I suggest taking what you owe in full, dividing it up over how many years you would have had to pay and then proposing that amount.

Customer: replied 2 years ago.
Ok, let me send another email to the lawyer, accepting the consent judgment against my property...
Expert:  Debra replied 2 years ago.

OK

Good luck.

Customer: replied 2 years ago.
Thanks
Expert:  Debra replied 2 years ago.

You're very welcome.

Customer: replied 2 years ago.
This is what I have received now from the lawyer: I have forwarded your proposal to the bank for consideration. The bank has advised that they cannot accept any payment plan from you. They will only accept payment in full, unfortunately.
Customer: replied 2 years ago.
Is there something that I could do?
Expert:  Debra replied 2 years ago.

I am sorry to hear this.

All you can do is put in a statement of defence and then hope you can settle this during the pretrial settlement conference.

Customer: replied 2 years ago.
how could I do that?
Customer: replied 2 years ago.
Also I'm asking why this possition from the bank, if I have another loan with them, with no problems...
Customer: replied 2 years ago.
Their lawyer says that the bank will accept reasonable payment plan if the borrower consents to judgement, but in this case, the bank is concerned that I won't be able to keep up tha payment plan proposed, so the bank is making it clear that they won't accept any payment plan from me... I'm asking now if I have another loan with them, why this possition, and if there is another thing like some kind of descrimination...
Expert:  Debra replied 2 years ago.

I cannot know what the thinking of the bank has been but it sounds like that lawyer has told you the truth. The bank doesn't think that you can manage the payments and they don't want to take a chance.

Customer: replied 2 years ago.
Then, what are my options?
Expert:  Debra replied 2 years ago.

I have provided them for you several times. I have nothing more to add. I've already suggested that you put in a statement of defence and try to settle at the pretrial settlement conference.

Customer: replied 2 years ago.
how could do that?
Could help if I get back the car to the agency?
Expert:  Debra replied 2 years ago.

I don't know. You would have to ask the lawyer's that.