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 owed with any postjudgment interestPostjudgment interestInterest on the money owed under a judgment, from the date of the judgment until it is paid. The rate is set under Ontario law [VERIFY: current rate].Close definition of Postjudgment interest, 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 [VERIFY: what the debtor must bring and how the notice is served].

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).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 [VERIFY: wage garnishment limits].

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, Forms 20C and 20D are used.Close definition of Writ of seizure and sale lets an enforcement office seize and sell the debtor's property to pay the debt. The forms used are Form 20C and Form 20D [VERIFY: which form covers personal property and which covers land]. Some property may be protected from seizure [VERIFY: exemptions].

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 [VERIFY].Close definition of Certificate of Judgment on Form 20A to enforce it there [VERIFY: when Form 20A is used].

Each of these steps has a fee [VERIFY: enforcement fees]. In many cases, these costs can be added to what the debtor owes [VERIFY].

The deadlines at this stage

The rules for how long each enforcement step lasts, and when it must be renewed, are set out in the rules [VERIFY: how long writs and garnishments last and how to renew them].

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 [VERIFY].
• 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 you are the debtor

If you owe money under a judgment, ignoring it usually makes things worse. 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
• ask the court about a payment order or a plan to pay over time [VERIFY: options such as consolidation orders]
• get legal or financial advice if you have several debts

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 [VERIFY: how to record that a judgment is paid].

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.