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Judgments often require a person to pay money to someone else. The person who is owed money is called the judgment creditor. The person who owes money is the judgment debtor. A debtor will often pay the full amount of the judgment. If they cannot, the creditor may agree to a payment schedule. If the debt is not paid and no payment plan is agreed upon, the creditor may take steps to collect on the judgment.
The first step in enforcing a judgment is to register it with the Judgment Registry. Once this is done, the judgment can also be registered in the Lands Titles Registry. If the debtor gets title to land after this is done, the judgment will automatically be registered as an interest on that title. The judgment can also be placed as an interest on any land titles the debtor already had.
A judgment must be registered in the Judgment Registry before legal steps can be taken to enforce the judgment. Having a judgment registered also allows anyone to know that the debtor’s property is subject to a judgment. This alone may encourage the judgment debtor to pay.
A judgment from small claims court must first be converted into a judgment of the Court of King’s Bench before it can be enforced. This can be done after the 30-day window to appeal is over and no appeal has been filed. You can convert the judgment by taking it to a King’s Bench Courthouse.
A judgment creditor can collect on a judgment by having the sheriff seize assets of the judgment debtor. Assets include things like money in a bank account, wages or physical property. The Sherrif’s Office is in charge of the seizure process and creditors pay fees for their services. Creditors may be able to recover the enforcement costs by adding them to what the debtor already owes them. Once the sheriff has seized assets, they can be used to satisfy the judgment. The creditor must complete certain steps before these actions can be taken.
More information about the role of the sheriff is available from the Courts of Saskatchewan website. It has information on the steps to be taken and links to the required forms.
Once a creditor has registered their judgment, they can give the sheriff enforcement instructions. This can be a general statement that they want the sheriff to collect from the debtor's wages, personal goods and lands. However, it can help to include more specific instructions such as the name of the debtor's employer. The sheriff can only seize what they can find.
Creditors must also provide a list of all property the debtor owns and its location, to the best of their knowledge. Other documents, such as a certified copy of the judgment and the results of a property registry searches, must also be included.
A creditor who has a judgment against a debtor can send a questionnaire to the debtor to find out what money and property has. The debtor must complete the questionnaire and return it to the creditor within 10 days of receiving it.
If the debtor does not complete the questionnaire, the creditor can ask the sheriff to serve a notice on the debtor. This notice requires the debtor to provide information about what money and property they have within 10 days of receiving the notice. It must be served on the debtor in person.
If the debtor still does not provide the required information, the creditor can ask the sheriff to issue a notice for the examination of the debtor. This is a meeting that the debtor must attend to answer questions under oath. A judge is not at the meeting, but a court reporter is. The creditor can ask the debtor any questions about their assets and finances. Questions may include:
The court reporter records the creditor's questions and the debtor's answers.
If you complete an enforcement instruction form, you can request that the sheriff seize certain property from the debtor to satisfy the judgment. Some property, or portions of the property, are exempt from seizure.
If a third party owes the debtor money, the sheriff can serve a notice that requires that person to give the money to the sheriff instead of paying the debtor. After the money has been seized by the sheriff, the sheriff notifies the debtor.
The sheriff can serve notice on a specific branch to seize any money the debtor has in an account at that branch on that day. If the money is in a joint bank account, the sheriff can seize the debtor's portion of the account. If there is no money in the account that day, no money can be seized. The sheriff can try another day or try a bank account at a different bank or branch.
The sheriff can seize all wages owing to a debtor in the next two years as they come due. This means that a notice only has to be served on the employer once every two years. The employer must continue to turn over the debtor's wages every time the debtor is paid for the next two years or until the debt is paid. Employers are not allowed to let an employee go because the employer has been served with a notice that the employee's wages are being seized.
The sheriff can seize and sell personal property belonging to the debtor to pay the judgment. Personal property includes personal belongings such as vehicles, furniture or appliances. The debtor can redeem the seized property by paying the amount owed under the judgment.
The sheriff or their deputies have the right to enter the debtor's land or premises, except the debtor's home, to seize goods. They can do things like breaking open gates or doors if these things are necessary to access property they are seizing. However, if the debtor asks them to leave, they cannot proceed any further without getting a court order. The sheriff cannot enter the debtor's home without the debtor's consent or a court order. A debtor can be ordered to pay the costs of a court application if they have refused entry.
Real property, such as land, that a debtor owns can be seized and sold. The proceeds can then be used to pay the judgment. The sheriff must wait twelve months after seizing the land to sell it unless the creditor applies to court to have this time shortened. This gives the debtor a chance to pay off what they owe and get the property back.
Special considerations apply to collecting debts by seizing property or money situated on a reserve. The Indian Act prevents creditors, who are not themselves Indians or bands under the Act, from collecting debts by taking the real or personal property of an Indian or band that is located on a reserve.
This protection only applies if the person who owes money is registered as an Indian under the Act. It also only applies to property on a reserve or property given to an Indian or a band under a treaty or other government agreement.
This protection does not prevent creditors from reclaiming goods sold under a conditional sales agreement. In a conditional sale, the seller continues to have rights to the property until the purchase price is paid in full.
Some property of the debtor is exempt from seizure under enforcement instructions. Sheriffs cannot seize any property that they believe is exempt or is likely to be exempt. Debtors will receive a notice that explains that certain property may be exempt from seizure and a form to be used to make an exemption claim. The sheriff must consider any exemption claim and make a decision about whether the property should be exempt. The debtor will be informed of the decision and can appeal to the court if they do not agree with it.
If a debtor's wages are seized, a certain amount per month is exempt from seizure. The amount is 70% of the wages per month or $1,500 per month plus $300 per month for each dependant, whichever is larger. A debtor can apply to court to have this exemption amount increased because of special circumstances. A creditor can also apply to have it decreased based on the amount of other exempt property the debtor has to support themselves and their family.
If money in an account is seized, the debtor can keep up to $1,500 plus $300 for each dependant if the money is needed to support the family for the next month. In deciding if the money is needed for the support of the family, the amount of exempt wages the debtor is entitled to in that month is considered.
In most cases, the sheriff cannot seize money owing to the debtor from certain federal and provincial agencies. Examples of funds that cannot be seized include:
However, if the debtor deposits the money from these cheques, the money in the account can be seized.
There is an important exception to this. If child or spousal support payments are unpaid, the Maintenance Enforcement Office can garnish all these payments except for social assistance.
There are certain kinds of physical property that is exempt. Sometimes, it is only exempt up to a certain value. The following property is exempt from seizure:
In some cases, property is exempt unless its value is significantly more than it would normally be. In this case, the judgment creditor can apply to court to have the property sold. The debtor will then be given an amount to repurchase the property at a lower cost. This property include:
If a debtor sells exempt property, the debtor can keep the proceeds to replace the exempt item. The proceeds remain exempt for up to 6 months provided they are kept separately from the debtor’s other money.
Farmers have some additional exemptions, including:
If property is jointly owned, the sheriff can seize and sell it. However, the joint owner who is not the debtor is entitled to receive their share of the proceeds. They are also entitled to purchase the debtor’s share before it is put up for sale.
Once the sheriff has seized property, they will sell it, if necessary, to convert it to money. This money is then distributed among any creditors who have a judgment against the debtor. A creditor who has registered a judgment but has not given the sheriff enforcement instructions is notified that funds are going to be distributed. They are given a chance to issue enforcement instructions so they can share in the funds distributed.
The funds are first used to pay the costs of seizure and sale of property by the sheriff. The costs of certain court proceedings that may have been taken to help with enforcement are paid next. The funds are then, generally speaking, distributed to all creditors who gave enforcement instructions in proportion to the amount the debtor owes them. A creditor who gave the sheriff enforcement instructions that directly resulted in money being collected will receive a greater share of that money.
If you gave enforcement instructions and then receive funds from the debtor, you must provide the funds to the sheriff. The sheriff will add those funds to what they have collected and then distribute them accordingly.
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