Collecting on a judgment

What this stage is

You have a judgmentJudgmentThe court's final decision in a case, saying who wins and what must be paid or done. A judgment can come after a trial, by default, or by agreement.Close definition of Judgment in your favour. That is a big step. But a judgment is a court order, not a cheque. If the other side does not pay, you have to take steps to collect. The court does not collect the money for you.

In this stage, the person who is owed money is the creditorCreditorA person or business that is owed money. After a judgment, the winner who is owed money is often called the creditor.Close definition of Creditor, and the person who owes it is the debtorDebtorA person or business that owes money. After a judgment, the side that must pay is often called the debtor.Close definition of Debtor. These steps are often called "enforcement."

What you need to do

1. Ask for payment first

Send the debtor a short, polite letter. Include a copy of the judgment, the total still owed, how to pay you, and a clear date to pay by. Many debtors pay once they see the judgment in writing.

Keep a record of every payment you receive, with the date and amount.

2. Find out what the debtor has

To collect, you need to know about the debtor's income, bank accounts and property. If you do not know, you can ask the court for an examination hearingExamination hearingA hearing after a judgment where the debtor answers questions under oath about their income, property and debts. It helps the creditor decide how to collect. It is started with Form 20H.Close definition of Examination hearing using a Notice of Examination (Form 20H). At the hearing, the debtor must answer questions under oath about their money, job, property and debts. Serve the notice personally or by an alternative to personal service at least 30 days before the hearing date. If the debtor is an individual, include a blank Financial Information Form (Form 20I). File the notice with proof of service at least three days before the date (Rule 8.01(10) to (12)). An individual debtor must complete Form 20I, serve it on you, give a copy to the judge and bring documents that support it (Rule 20.10(4.1), (4.2)).

Questions you might ask:

• Where do you work, and how much are you paid?
• Which banks do you use?
• Do you own a home, land or a vehicle?
• Does anyone owe you money?

3. Choose a way to collect

GarnishmentGarnishmentA way to collect a judgment by having money owed to the debtor, such as wages or bank funds, paid to the court instead. It uses a Notice of Garnishment (Form 20E). Most of a person's wages are protected: 80% are exempt, so up to 20% can be garnished, and for support or maintenance 50% are exempt (Wages Act, section 7). A notice stays in force for 6 years from issue and 6 more years from each renewal (Rule 20.08(5.1)).Close definition of Garnishment. A Notice of Garnishment (Form 20E) tells a third party who owes the debtor money, such as an employer or a bank, to pay part of it to the court instead. That third party is called the garnisheeGarnisheeA person or business that owes money to the debtor, such as an employer or a bank. A Notice of Garnishment tells the garnishee to pay part of that money to the court instead.Close definition of Garnishee. There are limits on how much of a person's wages can be taken (Wages Act, section 7):

• 80% of a person's wages are exempt, so you can garnish up to 20%.
• If the debt is a support or maintenance order, 50% of wages are exempt.
• "Wages" means pay after the deductions an employer must make by law.
• A judge can change the exempt amount on a motion.

Writ of seizure and sale. A writ of seizure and saleWrit of seizure and saleA court document that lets an enforcement office seize and sell a debtor's property to pay a judgment. In Small Claims Court, Form 20C is used for personal property and Form 20D for land.Close definition of Writ of seizure and sale lets an enforcement office seize and sell the debtor's property to pay the debt. Use Form 20C: Writ of Seizure and Sale of Personal Property for the debtor's personal property, and Form 20D: Writ of Seizure and Sale of Land for land. Some property may be protected from seizure. Under the Execution Act, a debtor who is not a corporation can keep necessary clothing, and can keep household furnishings and appliances, tools used to earn a living and one motor vehicle up to set dollar values.

Moving the judgment to another court location. If the debtor lives or has property in another area, you may need a certificate of judgmentCertificate of JudgmentA court document (Form 20A) that confirms a judgment. It can be used to enforce the judgment in a different court location.Close definition of Certificate of Judgment on Form 20A to enforce it there. You ask the clerk for it with an Affidavit for Enforcement Request (Form 20P) stating the amount still owing, and the clerk issues it to the court location you name (Rule 20.04).

Each of these steps has a fee. See the court fees table on your court's page (for example, Toronto). In many cases, these costs can be added to what the debtor owes.

The deadlines at this stage

A garnishment notice stays in force for 6 years from the day it is issued. It stays in force for 6 more years from each renewal (Rule 20.08(5.1)). Renew it before it ends. A writ of seizure and sale, for personal property or for land, lasts six years. You can renew it before it ends with a Request to Renew Writ of Seizure and Sale (Form 20N) (Rules 20.06 and 20.07). A request for a writ, a certificate of judgment, a notice of garnishment or a notice of examination must be supported by an Affidavit for Enforcement Request (Form 20P).

Keep in mind:

• New trial motion: the other side can bring a motion for a new trial within 30 days after the final order (Rule 17.04). Collection steps may be affected while that is pending.
• Motions: if you need the court to decide something, a motion on Form 15A is served at least 7 days before the hearing (Rule 15.01).

If your judgment came from a tribunal

An order to pay money from a tribunal, such as the Human Rights Tribunal of Ontario or the Landlord and Tenant Board, is not a Small Claims Court judgment yet. Generally, if the amount is within the Small Claims Court limit, you file a certified copy of the tribunal order with the Small Claims Court. After that you can use the same collection tools as above, such as garnishment or a writ of seizure and sale. You file a certified copy of the order. Ontario's court guide points to section 19 of the Statutory Powers Procedure Act for this. Once filed, the order is treated as an order of the court for enforcement. The court fee to receive an order for enforcement is $45. GoSelfRep does not yet guide landlord and tenant disputes, so ask the court office or a community legal clinic about the steps.

If you are the debtor

If you owe money under a judgment, ignoring it usually makes things worse. The creditor can still collect. You can:

• contact the creditor and offer payment termsPayment termsA plan to pay money owed over time, such as a set amount each month. A defendant can propose payment terms in a Defence, and the plaintiff can dispute them within 20 days (Rule 9.03).Close definition of Payment terms you can actually keep, and get the agreement in writing
• ask the court to change when and how much you pay, or to pause collection, if your circumstances have changed. You do this with a motion on Form 15A (Rule 20.02)
• ask for a consolidation order if you owe money under two or more unpaid orders (Rule 20.09)
• go to an examination hearing if you are served with a Notice of Examination (Form 20H). If you are a person, you must fill in a Financial Information Form (Form 20I), serve it on the creditor (do not file it with the court), give a copy to the judge, and bring papers that support it (Rule 20.10). If you speak for a business, an officer, director, partner or the owner is examined for it and must be ready to answer; Form 20I is not required
• make a motion on Form 15A to set the judgment aside, if it was made after you were noted in default (Rule 11.06). Act quickly and explain why you missed the deadline
• bring a motion for a new trial within 30 days after the final order (Rule 17.04)
• get legal or financial advice if you have several debts

While an order for periodic payment is in force, the creditor cannot take most collection steps against you (Rule 20.02(2)). Once you have paid in full, all parties can file a clerk's order on consent (Form 11.2A), or you can make a motion to confirm the payment (Rule 20.12).

If you are served with a Notice of Examination

Go. The examination is private, under oath and recorded (Rule 20.10(6)). The judge may ask why the order has not been paid, what you earn and own, what you owe and are owed, anything you gave away, and what you can pay in the future (Rule 20.10(4)). After it, the court may make an order as to payment. While that order is in force, the creditor cannot take other steps to collect, except a writ of seizure and sale of land (Rule 20.10(8)).

If you do not go, or refuse to answer

A judge may order a contempt hearing. The creditor must have the notice handed to you in person, and prove it at least 7 days before the hearing (Rules 8.01(13) and 20.11(3)). If the order was for missing the examination, you can make a motion on Form 15A before the hearing date to set it aside. The court may order another examination instead (Rule 20.11(4)). At the hearing the judge can order another examination, up to 5 days in jail, another contempt hearing, or another order that is just (Rule 20.11(7)). A jail order becomes a warrant of committal (Form 20J). It lasts 12 months and the creditor can ask to renew it (Rule 20.11(10)). To have it set aside, the debtor makes a motion on Form 15A.

Forms

• Form 20H: Notice of Examination
• Form 20E: Notice of Garnishment
• Form 20C and Form 20D: Writ of Seizure and Sale
• Form 20A: Certificate of Judgment

Common mistakes

• Waiting too long. The longer you wait, the harder it can be to find assets.
• Using the wrong legal name. Enforcement depends on matching the debtor's exact legal name.
• Not tracking payments. Always know the exact balance owed.
• Garnishing the wrong bank. Use the examination hearing to learn where the money is.
• Forgetting to tell the court when you are paid. Once the debt is paid, there are steps to close it out. If everyone agrees, a party files a Request for Clerk's Order on Consent (Form 11.2A) saying the order has been paid in full. If not, the debtor can bring a motion for an order confirming payment (Rule 20.12).

What happens next

Once you are paid in full, your case is done. Keep your file, including the judgment and payment records, in a safe place.

Need to go back? See Trial day, or return to the Small Claims Court guide.