Once you’ve successfully been awarded a judgment you may still have to take further steps to collect. If a court has granted you (the creditor) an amount against someone, (the debtor) who has failed to pay, you can take several actions to enforce that judgment. For creditors in Calgary and across Alberta, understanding your enforcement options is an important part of the recovery process.
Understanding the Judgment
When a court issues a judgment, it declares the debtor owes a specific amount of money, typically including damages, interest, and possibly Alberta court costs. In the Alberta court system, however, the judgment is only the first step. The challenge often lies in ensuring that the debtor actually pays what is owed.
Steps to Take Before Enforcing a Judgment
Before beginning enforcement, it’s crucial to make sure that the judgment is enforceable. In Alberta, judgment enforcement is governed by the Civil Enforcement Act in Alberta. The first thing you need to consider is the level of court your judgment is from. If your judgment is from the Alberta Court of Justice, you must first register it in the Court of King’s Bench before you can proceed with any enforcement action.
In Alberta, a judgment is enforceable for 10 years from the date it was issued, but the creditor must actively pursue enforcement within that time frame. If the debtor has assets or income, you have a better chance of collecting, but if they are uncooperative or insolvent, enforcement may become more difficult.
If the debtor is refusing to pay voluntarily, there are several enforcement options available:
Methods of Enforcing a Judgment
These enforcement methods are commonly used by creditors in Calgary and throughout Alberta. There are multiple methods for enforcing a judgment in Alberta. The most common are:
1. Writ of Enforcement (Writ of Seizure and Sale)
The most common enforcement method is applying for a Writ of Enforcement from the court. This document gives you the legal authority to seize the debtor’s property to sell and satisfy the judgment. Once the writ is granted, it can be used to garnish wages, seize personal property, or sell real estate.
- Garnishment: A creditor can garnish wages, bank accounts, or other income of the debtor. This process involves notifying the third party holding the debtor’s money (such as an employer or bank), who is then required to pay part of the debtor’s income directly to the creditor until the judgment is satisfied. Garnishment is one of the most common methods of judgment enforcement in Alberta.
- Seizure of Assets: The court-appointed sheriff or enforcement officer can seize and sell the debtor’s property, such as vehicles or household goods, to satisfy the judgment.
- Sale of Real Property: If the debtor owns real estate, the creditor may apply for a writ to seize and sell the property. This is a more complex and costly option but can be a viable method if the debtor owns substantial real estate.
2. Personal Property and Real Property Searches
A creditor may also perform a search to locate the debtor’s personal or real property, assets, or bank accounts. This can be done through the Alberta Personal Property Registry (PPR) or the Alberta land title registry to see if the debtor owns any property that could be sold or seized.
3. Income and Bank Account Garnishment
Garnishment is one of the most common methods of judgment enforcement. You may request the court to issue a garnishment order to seize a portion of the debtor’s income or funds from their bank account. Garnishing a debtor’s wages or bank accounts can provide a steady way of recovering funds. To initiate garnishment, you must complete the necessary paperwork and serve it on the debtor’s employer or bank.
Post-Judgment Proceedings
If you successfully enforce your judgment and collect some or all of the money owed, it’s important to keep track of the payments. If the debtor is making installment payments, you may want to request a satisfaction of judgment once the debt is fully paid.
In some cases, the debtor may be unable to pay the judgment immediately. The court may allow them to set up a payment plan. If the debtor’s financial situation changes, it could affect the enforcement process, either making it easier or more difficult to collect the debt.
When Enforcement Doesn’t Work
Sometimes, despite the best efforts, judgment enforcement may not yield results. If the debtor has no assets or income, enforcing the judgment can be very challenging. In such cases, the creditor may have to wait until the debtor’s financial situation improves or consider alternative dispute resolution methods to recover the debt.
Enforcing a judgment in Alberta requires a series of legal steps, including obtaining the necessary court orders and using various methods such as garnishment, asset seizure, and wage deduction. While the process can be complex and time-consuming, understanding the options available can increase the likelihood of successful enforcement.
Consulting with a legal professional can help guide you through the process and ensure that your rights are upheld during judgment enforcement. If you have difficulty recovering the amount owed, you can seek assistance from collections professionals who specialize in the enforcement process. For creditors in Calgary or elsewhere in Alberta, if you have difficulty recovering the amount owed, you may seek assistance from collections professionals who specialize in the enforcement process or speak with a litigation lawyer to assess your options.
