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Legal Blog: Collections
Jun
11
2013
If you have obtained a judgment against a debtor, can you share in any monies remitted under a notice of garnishment issued by another creditor?
Yes, if you have filed a writ of seizure and sale in the jurisdiction where the debtor resides, you and any other execution creditors with writs filed in that jurisdiction are entitled, pursuant to the Creditors’ Relief Act, to share on a pro rata basis the monies remitted to the Sheriff under the garnishment.
Continue Reading >Jun
10
2013
After you have issued and served a notice of garnishment on a debtor’s employer, can the debtor challenge the amount being deducted from his wages?
Yes, a debtor may bring a motion to the Court for a garnishment hearing. If the debtor can establish that the amount of the deduction is too financially onerous, the Court may vary or even suspend the payments under the garnishment.
Continue Reading >Jun
07
2013
If you obtained judgment against a debtor seven years ago but have only now found employment details for the debtor, can you garnishee his wages?
In accordance with Rule 60.08(2), if six or more years have elapsed since the date of the judgment, a notice of garnishment cannot be issued without a Court order. In the motion to the Court, it is necessary for the creditor to establish the reason for the delay in seeking to garnish the debtor’s wages. The notice of garnishment itself must be issued within one year of the date of the order granting leave.
Continue Reading >Jun
06
2013
If you have obtained a notice of garnishment against a debtor’s employer, on whom are you required to serve the notice?
Pursuant to Rule 60.08(7), the notice of garnishment must be served, together with the affidavit filed by the creditor, on the debtor. The notice of garnishment must also be served on the garnishee together with a blank garnishee’s statement.
Continue Reading >Jun
05
2013
After a creditor has served a notice of garnishment on a debtor’s employer, how do the garnishment monies get paid?
The garnishee is required to remit garnishment funds to the Sheriff of the jurisdiction where the debtor resides. The Sheriff is then required to distribute the funds in accordance with the Creditor’s Relief Act.
Continue Reading >Jun
04
2013
Can a notice of garnishment be renewed?
A notice of garnishment can be renewed before its expiry by filing a requisition for renewal of garnishment and the affidavit required by Rule 60.08(4) with the Registrar of the court where the proceeding was commenced.
Continue Reading >Jun
03
2013
When a creditor issues a notice of garnishment of a debtor’s wages, how long will the notice remain in place?
Pursuant to Rule 60.08(6.2), a garnishment remains in force for six years from the date of its issue.
Continue Reading >May
14
2013
When can I obtain default judgment against a defendant?
Pursuant to Rules 18.01 and 19 of the Rules of Civil Procedure, the plaintiff can move for default judgment 21 days after the defendant was served or deemed served with the statement of claim.
Continue Reading >May
13
2013
Is there a maximum amount that a creditor can garnish of a debtor’s wages?
If the debtor is an employee, under section 7(2) of the Wages Act, the maximum amount that can be garnisheed is 20% of an individual’s wages, net of all amounts that the employer is required by law to deduct. If the debtor is an independent contractor, the full amount of monies owed to the individual are subject to garnishment.
Continue Reading >May
10
2013
After obtaining judgment against a defendant, can I seize a defendant’s wages to satisfy the judgment?
If a plaintiff has knowledge of the defendant’s place of employment, he can issue a notice of garnishment against the defendant’s employer pursuant to Rule 60.08. The plaintiff must file a requisition for garnishment and an affidavit setting forth the information contained in the Rule.
Continue Reading >