Law

• Enforcement of an order

  Any lawful attempt to recover money or property pursuant to a court order
• Creditor


  Person entitled to enforce a Small Claims Court order for payment or recovery of money
• Debtor


  Person against whom a Small Claims Court order for payment or recovery of money may be enforced
• Types of orders


  • Order for payment or recovery of money
  • Order for delivery of property
• Types of Creditors


  • Secured creditors
  • Preferred creditors
  • Ordinary creditors
• Collateral


  Property against which the loan is pledged
• Realizing on the security


  Seizing and selling the collateral, and applying the proceeds of the sale to paying the balance owing
• Chattel Mortgage


  A loan that is secured against personal property
• Preferred Creditors


  Unsecured creditors who rank ahead of other unsecured creditors because of special rights conferred by a statute
• Support and maintenance creditor

  Person to whom child or spousal support is owed by a debtor
• Crown = Government
• Ordinary Creditors


  Creditors with no security for a debt and no preferred status
• Ordinary Creditors


  • Will often be encountered in Small Claims Court debt collection
  • Amount the ordinary creditor can collect is dependent on what assets or income the debtor possesses against which a judgment may be enforced
• Lump sum payment


  A one-time payment of full amount owing or a portion thereof
• Periodic payments


  Payments of fixed amounts at regular intervals until such time as all amounts owing are paid in full
• Stay of enforcement


  Stopping enforcement by creditors against a debtor for so long as the debtor complies with the terms of a court order
• Waive the default


  Give up the right to terminate the order for periodic payment based on the debtor's failure to pay
• Total Judgment Amount


  Money award + pre-judgment interest + costs
• Pre-judgment interest ends on judgment date
• Post-judgment interest begins on judgment date
• Rate


  The rate for the quarter before the quarter in which judgment was obtained
• Quarter


  A three-month period
• Start date


  Post-judgment interest is calculated from the date of the order
• End date


  The date you prepare the forms for a particular enforcement step
• Net wages


  Amount of wages after all lawful deductions
• Reciprocal Enforcement of Judgments Act

  $35,000 or less
• Originating Process


  Document that commences an action
• Originating Court


  Court where an order is made
• Registering Court


  Court in which a judgment is registered
• Exigible Assets


  Assets that can be seized or garnished
• Non-exigible Assets


  Assets that cannot be seized or garnished
• Examination of Debtor or Other Person

  Useful tool for finding out about debtor's current financial circumstances
• Contempt Hearing


  • Failure to attend examination
  • Finding of contempt
  • Court may find person in contempt if person fails to show cause why they should not be held in contempt (Rule 20.11(5))
• Garnishment


  • A garnishment may be issued if more than 6 years have passed
  • Creditor may enforce order for payment or recovery of money by garnishment of debts payable to debtor by other persons
• Garnishee


  Person who owes money to a debtor
• Garnishor


  A creditor who enforces an order for payment or recovery of money by way of garnishment
• What can be Garnished?

  • Money paid out of an RRSP
  • Wages paid by an employer to an employee
  • Commissions and tips
• Co-owner of the debt


  A person who is entitled to part of a debt, and may assert their right to co-ownership of the debt in a garnishment of that debt
• Joint debt


  A debt that is payable to two or more persons
• Satisfaction of a Debt by Garnishment


  • Termination of garnishment
  • Garnishee is personally liable to the creditor for any missed payments