Enforcement Steps After Obtaining a Monetary Judgment

You finally have a judgment — so you’re done, right? Not quite. Collecting on a judgment can be a lengthy and frustrating process, particularly if the debtor refuses to pay or has no assets to go after. That’s why it’s always worth considering the realistic prospect of recovery at the start of a file, before investing significant time and resources.

When enforcement is possible, success generally comes down to three things: how much you know about the debtor’s assets, how quickly you can move against them, and whether you know where the debtor is.

Identify the Debtor’s Assets

You need to know what assets the debtor owns and where they are located. A good starting point is a land title search to determine if the debtor owns property, and a Personal Property Registry (“PPR”) search to identify any other assets.

If those searches don’t turn up much, an examination in aid of execution or subpoena to debtor is your next best option.

An examination in aid of execution occurs outside of court and allows you to question the debtor directly about their financial circumstances with a broad scope of questioning. Before the examination, the debtor is required to disclose financial documents, which may reveal that the debtor has no assets or provide enough information to pursue enforcement directly. If the debtor fails to comply, you can apply for a court order compelling production of records from financial institutions.

A subpoena to debtor requires the debtor to attend in person at court and answer questions under oath before an examiner (typically a registrar or associate judge). The scope of questioning is narrower than what is permitted in an examination in aid of execution, but it still covers the debtor’s overall financial situation. Once the questioning is complete, the examiner can make an order for repayment of the judgment.

Registration

If your searches reveal that the debtor owns land, register your judgment against the title of that property. This can make it more difficult for the debtor to sell or deal with the property until your judgment is paid out. Registration also gives you the option to force a sale of the property pursuant to ss. 82 to 116 of the Court Order Enforcement Act (COEA), although this can be a lengthy and expensive process.

Garnishment

If you know where the debtor works or banks, you can attempt to garnish their wages or bank account. Garnished funds are paid into court and then released to the judgment creditor, typically by court order.

Writ of Execution

If your PPSR search or other information reveals assets held by the debtor (other than land), you can obtain a writ of execution allowing for the seizure and sale of the debtor’s goods (including motor vehicles), subject to certain exemptions under s. 71(1) of the COEA. When pursuing this option, you must ensure the assets are actually owned by the debtor and not a third party. Before any seizure occurs, the bailiff or sheriff will give the debtor an opportunity to pay the judgment, which, in practice, often resolves the matter.

Money Judgment Enforcement Act

The Money Judgment Enforcement Act is a new piece of legislation that has been passed but is not yet in force. When it comes into effect, it is intended to make enforcing money judgments in British Columbia simpler and less costly.

One of the biggest changes is the introduction of a presumption of universal exigibility, meaning that all property a debtor has an interest in would be subject to enforcement, rather than the current property-specific procedures under the COEA. Other notable changes include a new Judgment Registry, a new limitation period for enforcing judgments, and the replacement of enforcement bailiffs with civil enforcement officers, among other more streamlined enforcement mechanisms.

If you have questions about enforcing judgments, please get in touch with Nicola Virk or another member of our Commercial Litigation team.