Very Complicated Situation Please Help

[Tek24]

to start this is Canadian, Ontario to be specific to make things even trickier.

I'll try to make it as simple as possible

in Canada there is the right for a bank, or I think any entity really, to "set off" a debt. Meaning if an individual has assets WITHIN the SAME organization, and the individual owes money to that same organization that they have assets with, then the bank can liquidate assets and pay off their balance owed at any time.

If a debt was incurred to a Life Insurance company, for overhead costs, liability insurance, and technology fees while under a sales contract.

and the individual also has assets, specifically whole life insurance with a cash surrender value with the SAME insurance company.

Will the insurance company be able to forcefully surrender the policies to set off the debt owed to them

 

[Tek24]

Looks like you guys don't do Canada

so guess i'm SoL

 

[adjusterjack]

You have two distinctly different situations and while this site is for US law I think I can make some helpful comments.

If you have a checking or savings account with a bank and have a loan or credit card with the same bank the account holder agreements often include a right of set off that allows the bank to take money from one account to cover a delinquent debt on the other account.

When you have an agent's contract with a life insurance company and have life insurance with the same company you would have to read your agent's contract to see if you consented to a right of set off against any life insurance cash value.

I suspect that the agent contract gives the insurance company the right to apply earned commissions to your debt but I'm guessing that a set off provision for the cash value of a life insurance policy would be unenforceable, if there even was one, and possible illegal under Canadian insurance law.


Are you saying that the insurance company IS taking the cash value of your policy and applying it to your debt, or threatening to do so?

Answer that question.

 

[quincy]

Looks like you guys don't do Canada

so guess i'm SoL

Right. This site handles US law questions only. You will need to seek out legal advice in Ontario.

The laws in Canada vary in significant ways from the laws in the US so what might apply here will not apply to you there.

Good luck.

 

[Tek24]

Are you saying that the insurance company IS taking the cash value of your policy and applying it to your debt, or threatening to do so?

Answer that question.

They're not threatening to do so or actively doing it, my concern is if it is an available option for them. In fact i'm not speaking with them at all. They've sent me emails with the amount I owe as per my sales agreement that's about it.

Another thing, Don't answer this next question if its too complicated. But in Ontario we have a statute of limitations on debt of 2 years. After which a company can not sue for debt unless it has received written acknowledgment of the debt or a payment. By renewing my license with another company I disclosed to the new company that I had debt with another institution. While the agent says they didn't send a copy of the agreement I signed to the original company I am quite certain they would have. Would that count as a written acknowledgment?

 

[quincy]

They're not threatening to do so or actively doing it, my concern is if it is an available option for them. In fact i'm not speaking with them at all. They've sent me emails with the amount I owe as per my sales agreement that's about it.

Another thing, Don't answer this next question if its too complicated. But in Ontario we have a statute of limitations on debt of 2 years. After which a company can not sue for debt unless it has received written acknowledgment of the debt or a payment. By renewing my license with another company I disclosed to the new company that I had debt with another institution. While the agent says they didn't send a copy of the agreement I signed to the original company I am quite certain they would have. Would that count as a written acknowledgment?

Please seek out information and advice in Canada. This site is not set up to handle legal questions outside the US. What is offered here is unlikely to apply to you and may serve only to confuse you.

Good luck.

 

[Tek24]

Please seek out information and advice in Canada. This site is not set up to handle legal questions outside the US. What is offered here is unlikely to apply to you and may serve only to confuse you.

Good luck.

I'm well aware of this at this point. Thank you

If people here are willing to give their best guess, then I will be appreciative for general information purposes.

 

[quincy]

I'm well aware of this at this point. Thank you

If people here are willing to give their best guess, then I will be appreciative for general information purposes.

We try not to "guess" on this forum. Accurate information is important. Guessing at the law benefits no one and guessing at the laws in other countries has no purpose.

You understood in your second post that this site is designed to assist posters with their US legal questions and concerns. You should find assistance in Ontario.

Good luck.

 

[Tek24]

We try not to "guess" on this forum. Accurate information is important. Guessing at the law benefits no one and guessing at the laws in other countries has no purpose.

You understood in your second post that this site is designed to assist posters with their US legal questions and concerns. You should find assistance in Ontario.

Good luck.

Thank you for clarifying that the beneficial feeling I was experiencing was indeed false and or not real.

In the future I will consult with you on the validity of the emotions I am feeling.

Your assistance is/was unsurpassable.

Gl yanks

 

[quincy]

Thank you for clarifying that the beneficial feeling I was experiencing was indeed false and or not real.

In the future I will consult with you on the validity of the emotions I am feeling.

Your assistance is/was unsurpassable.

Gl yanks

I can feel your gratitude. I am happy you appreciate that our guessing at Canadian laws will not serve you well.

Good luck.

 

[quincy]

For our Canadian friends, there is LegaLine.ca and legal.advicescene.com and styleform.net ... among other sites ... where legal information and advice specific to Canada can be found.