Do you really think that they would take you to a higher court for 20K? I don't think so. If someone had been taken to court for 20K (not small claims) I will admit that I'm wrong and eat my hat.
Sorry. I am not being clear about my point. My point is that if you owe the broker money, don't expect a lien on your property soon. Yes, your credit may be damaged. You might be blacklisted. Eventually there may be a lienn, but not tomorrow.
" If someone had been taken to court for 20K (not small claims) I will admit that I'm wrong and eat my hat. " people can taken to regular court ( not small claims court) for less than 20k in small towns in Canada and the US all of the time. do u prefer mustard or ketchup with your hat? please post picture.
I don't think, I know. A debt collector with a legal team or firm would take you to court for $10k or even $8k over a charged off credit card for which they probably do not even have all the right documents.. Owing money to a broker is even easier to prove, that is assuming the offender would even bother to show up. It's really not that expensive to sue someone in civil court when you're bringing dozens of cases at a time.
8-10K? That is a small claim and I can see a broker taking you to court for that. They may use an in-house paralegal or hire one. But over 10K (different in other jurisdictions), this would go into a regular civil court. That can take a VERY long time and very expensive for the broker if you are stubborn. You are correct in saying owing money to a broker is easy to prove. But if you are stubborn (not settling), and it's in a higher court and you don't care about your credit, it can drag for a lloonng time.
Yes they can. But would they? I meant if someone here, or anyone you know, had been taken to a HIGHER court for 20K, I'll eat my hat. For 20K, usually the plaintiff would opt for a small claim (10K to 12K) to have it settled cheaply and quicker.
and if you don't pay the court can freeze your bank account..court order. anything over $10,000 is NOT small claim. one reason, the swiss banks have bank secrecy laws...gov't and courts can freeze your bank account for whatever reason or debt or taxes owing. or debts owing whether the debit is legit or not. if you owe money and the court orders seizure of assets and bank account or brokerage account,,nowadays there is nowhere to run or hide for dead beat debtors, not even swiss banks.
A position loss, can be broken up into parts, and resulting in multiple small claims and no judgement wins for the brokerage. So a total loss of 20K = 6K ontario small claim on 4 counts. Giving the brokerage the right to freeze your bank accounts and charge to max on your credit cards and go after your regular income, car, etc. The firm that failed to do that should fire their firm lawyers. =) I come from Toronto.
Look in the dictionary under 'wishful thinking' and you'll find this post. To the OP, if you doubt that they would go after you in either case, you shouldn't be playing this game. They will do a cost benefit analysis and choose the course of action which will most likely improve their bottom line.