Enforcing Court Judgments and Tribunal Orders

Judgment Is Not Automatically Paid

Some people assume that once a judge or tribunal rules in their favour, payment will automatically follow.

Unfortunately, this is not always the case. At Invictus Legal LLP we do get opponents that pay immediately upon the pronouncement of the judgement. The majority assume that the creditor will stop chasing them after a time. Many creditors do because they don't know how to collect on that debt, then the time runs out and the debt is no longer enforceable.

The court does not collect money on behalf of successful litigants, but they do provide tools that allow you to collect. Let's be very clear it is the responsibility of the successful party, known as the judgment creditor, to take steps to enforce the judgment against the unsuccessful party, known as the judgment debtor. That is why you need a good legal team supporting you.

If the debtor does not voluntarily comply with the order, enforcement proceedings may become necessary.

What Orders Can Be Enforced?

Ontario Small Claims Court can enforce:

• Small Claims Court judgments;
• Judgments transferred from other courts where appropriate;
• Tribunal orders that require the payment of money;
• Settlement agreements that have been filed with a court and converted into enforceable orders.

Before beginning enforcement proceedings, it is important to ensure that the order has been properly issued and that all appeal periods have expired or any stays have been addressed.

Some unsuccessful litigants claim that they are appealing the case, some do, most do not. If you have not heard anything within 60 days then their statutory time to appeal has likely expited. now you should take action to enforce the debt.

Locate their Assets

Before starting out on the path to enforcement, as a creditor you should make some attempt to determine what assets the debtor owns. Potential assets may include:

• Real estate;
• Employment income;
• Rental income, what properties do they own?
• Vehicles, although cars that have finance arrangements can be protected from seizure.
• Bank accounts;
• Business assets;
• Accounts receivable;
• Investments.

A debtor who has no income or assets may be considered "judgment proof," meaning that enforcement efforts may have little chance of success. Some benefit claiments can be judgement proof.

Every bit of detective work you do can identify assets they wish to hide from the court. Having gotten judgement it is normally best you hire a professional firm, like Invictus Legal LLP to enforce yourt order. The more assets you can identify increases the chance of successful enforcement.

Judgment Debtor Examination

One of the most useful enforcement tools available through Small Claims Court is the Judgment Debtor Examination.

A creditor may require the debtor to attend court and answer questions under oath regarding:

• Employment status;
• Rental income properties (residential and commercial)
• Income sources;
• Bank accounts;
• Property ownership;
• Business interests;
• Debts owed to the debtor;
• Other financial resources.

The examination can provide valuable information that allows a creditor to determine which enforcement methods are most likely to succeed.

If a debtor fails to attend a properly scheduled examination, the court may issue further orders compelling attendance or even jail time for contempt of court, that can then change their behaviour.

Garnishment

Garnishment is one of the most common methods of enforcement. A garnishment order directs a third party who owes money to the debtor to instead pay those funds toward the judgment. They cannot lose their rights because they have to pay you, the debtor.  You can garnish their pay packet, their rental income, money in the bank account. You can also garnish money owed to the debtor by customers, contractors, or other third parties.

This is the most popular enforcement method, but your Associate can advise you once they know your circumstances.

Wage Garnishment is the most popular form of garnishment. The creditor has the employer deduct a portion of an employee's wages which are collected toward those funds calculated in the judgment debt. Additionally bank accounts can be garnished, however timing is critical because funds can be moved or withdrawn before the garnishment takes effect.

It is also possible to garnish other debts, for example money owed to the debtor by customers, contractors, or other third parties, this may be important when the debtor is a business and has a constant flow of money.

Writ of Seizure and Sale of Personal Property

A creditor may obtain a Writ of Seizure and Sale for Personal Property.

This writ authorizes the sheriff to seize and sell certain non-exempt personal property belonging to the debtor.

Examples may include:

• Equipment;
• Business assets;
• Vehicles;
• Valuable personal property.

However, many categories of property are exempt from seizure under Ontario law, and the practical costs of seizure may outweigh the value of the assets available. Your Invictus Associate will understand if this is the right approach for you.

Writ of Seizure and Sale of Land

If a debtor owns real estate, the creditor may file a Writ of Seizure and Sale of Land. This writ is registered against the debtor's property and can create significant pressure to satisfy the judgment. as the writ may:

• Interfere with refinancing;
• Complicate property sales;
• Secure the creditor's interest against the land.

In some circumstances, the sheriff may ultimately sell the property to satisfy the debt, although this is relatively uncommon and subject to complex legal requirements.

Strategic Considerations to Make

Successful enforcement often requires a strategic approach, factors to consider include:

• The amount owing if this is only a few hundred dollars it may cost more to enforce the debt;
• The debtor's financial circumstances, for example whether they are judgement proof in that they don't have assets or are in receipt of government benefits;
• Available assets;
• Costs of enforcement, especially if this is greater than the debt owed;
• Likelihood of recovery;
• Potential bankruptcy or insolvency issues.

Sometimes a negotiated payment arrangement can achieve a faster and more cost-effective result than aggressive enforcement proceedings.

Professional Assistance Is Helpful

While Ontario's Small Claims Court is designed to be accessible, enforcement procedures can become complex. Identifying assets, preparing garnishment documents, conducting examinations, and registering writs all require careful attention to procedural rules. A paralegal, like those with Invictus Legal LLP,  experienced in judgment enforcement can help creditors evaluate recovery options, avoid procedural mistakes, and maximize the likelihood of collecting what they are owed.