Steps to locate the debtor's money and assets
Use a telephone book or city directory. Often a quick review of the telephone book or a city directory will provide the debtor's proper information. City directories can also be used to obtain a spouse's name or an employer's name. Most libraries and courthouses in Ontario have such directories.
Search the corporate registry at the office of the Ministry of Consumer and Commercial Relations. This should be the first step in any collection file involving a corporate entity. This search will disclose the registered office of the corporation and the names and addresses of directors, shareholders and possibly other officers.
Search the records of the Ministry of Transportation. This should be a standard search in every collection file. It will confirm the name and most current address of the debtor (as well as the date of birth in certain circumstances). In addition, a search will disclose any motor vehicles and licence plates, which are registered in the debtor's name either as owner or co-owner.
Search the property registries to see if the debtor owns any property. Once the name and address of the debtor are confirmed, a search may be made in the property registries in those districts or counties where the debtor resides or may own property. The search should be made both in the registry office and in the land titles office since they are separate registries in some parts of Ontario.
Contact a credit bureau to see if they have any information. Depending on the nature and extent of the claim, a credit bureau report could provide considerable information concerning the debtor's assets, liabilities and financial history. Some small claims court offices have credit bureau reports available for a small fee.
Hire an investigator or a "skip-tracer". There are many asset searches and investigative agencies which specialize in locating debtors and their assets. These agencies and investigators may be located through the yellow pages or through a legal directory.
Use a telephone book or city directory. Often a quick review of the telephone book or a city directory will provide the debtor's proper information. City directories can also be used to obtain a spouse's name or an employer's name. Most libraries and courthouses in Ontario have such directories.
Search the corporate registry at the office of the Ministry of Consumer and Commercial Relations. This should be the first step in any collection file involving a corporate entity. This search will disclose the registered office of the corporation and the names and addresses of directors, shareholders and possibly other officers.
Search the records of the Ministry of Transportation. This should be a standard search in every collection file. It will confirm the name and most current address of the debtor (as well as the date of birth in certain circumstances). In addition, a search will disclose any motor vehicles and licence plates, which are registered in the debtor's name either as owner or co-owner.
Search the property registries to see if the debtor owns any property. Once the name and address of the debtor are confirmed, a search may be made in the property registries in those districts or counties where the debtor resides or may own property. The search should be made both in the registry office and in the land titles office since they are separate registries in some parts of Ontario.
Contact a credit bureau to see if they have any information. Depending on the nature and extent of the claim, a credit bureau report could provide considerable information concerning the debtor's assets, liabilities and financial history. Some small claims court offices have credit bureau reports available for a small fee.
Hire an investigator or a "skip-tracer". There are many asset searches and investigative agencies which specialize in locating debtors and their assets. These agencies and investigators may be located through the yellow pages or through a legal directory.
When the debtor is uncooperative
My debtor is hiding their assets / property under their family member's name. Can I enforce my Judgment against their family member?
Uncovering Hidden Assets The Role of Examination Hearings
If you suspect that the debtor is intentionally hiding their assets, it may be worthwhile to initiate an examination hearing. Through the hearing, you may be able to obtain sufficient evidence and testimony to support that the transfer was made to avoid paying the debt. Obtaining the evidence during an examination hearing is important so that you can present it to the court to obtain appropriate court orders. If you suspect that the debtor is acting fraudulently, consult with us. We can devise the best strategy based on your situation.
Pursuing enforcement when the debtor claims to have nothing
Is it worth pursuing the enforcement process if my debtor says he has nothing? We understand your frustration. Enforcement procedures can add more costs when you are not sure if there is anything you can claim from. However, you may consider pursuing the enforcement process for the following reasons Your time and resources are valuable. To plan your next move, contact us. We have experience advising clients on the viability of the next steps. Fill out the intake form or call us at :
You may be able to locate hidden assets or income sources that the debtor is not disclosing.
You send a strong signal that you are not giving up and may further deter the debtor’s non-compliance.
The court orders and your judgement remain effective for many years. Even if you are unable to collect the debt now, you may be able to collect in the future if you initiate the process now. If you do not take timely action, you may lose your right to initiate the procedures later.
Once you initiate the enforcement procedures, the debtor has an obligation to update any change of their financial circumstances. For example, if their income increases, the garnisheed (seized) portion of their income will automatically increase.
Penalizing debtors who intentionally avoid their obligations
Is it worth pursuing the enforcement process if my debtor says he has nothing? Your debtor must comply with the enforcement procedures. They have to provide the requested information and documents honestly and accurately. If your debtor fails to comply with the court orders, they may face serious consequences. For example, your debtor must attend an examination hearing if you request one. If they fail to attend without any reasonable excuse, they may be found to be in contempt of court. Being in contempt of court means that they have violated the court order and have interfered with the administration of justice. Contempt of court may be punished by a fine or even imprisonment. If the debtor lies during the examination hearing, the court may make such a conduct as an offence under the Criminal Code. The debtor will be subject to a fine or imprisonment. If you believe your debtor is in contempt or is lying to the court, consult with us. Our experienced lawyers can help you present evidence to the judge so that your debtor is held accountable.
Is there any way to penalize my debtor who is intentionally avoiding his duty?
When your debtor files for bankruptcy, they are protected by the law from the creditors until they are discharged from bankruptcy. It means that you have to stop all the legal procedures you have initiated or are about to initiate. You have to inform the court that the debtor has filed for bankruptcy. The court will likely stay (stop) the proceedings against the bankrupt debtor. However, there are some exceptions. If your claim arose based on the followings, you may be able to continue pursuing your claim
Navigating Debt Collection in Bankruptcy
If your claim is not protected, then you have to wait for the distribution of the bankrupt debtor’s money and assets. The bankrupt will have to surrender their property to the trustee. The trustee will sell the assets and distribute the money to proven creditors in the order set out by the Bankruptcy and Insolvency Act. It may take some time for the money to be distributed, so you must be patient. As you can see, there are many variables to consider in collecting debt from a bankrupt. Let us help you protect your claim.
Is there any way to penalize my debtor who is intentionally avoiding his duty?
If your debtor receives income from specific sources, that income may be exempt from garnishment or seizure. Even if you obtain a writ or notice of garnishment, you may not be able to garnish the following incomes
Employment insurance benefits
Social assistance benefits
Pension income up to a specific amount
For example, income from the Ontario Works Program (OWP) and the Ontario Disability Support Program (ODSP) cannot be garnished. The court has confirmed that these income sources are exempt from garnishment or seizure. The purpose of social assistance is to provide for the minimum needs of the recipients’ families. Therefore, the law protects the income from these sources so that the recipients would not fall below the poverty line.
For example, income from the Ontario Works Program (OWP) and the Ontario Disability Support Program (ODSP) cannot be garnished. The court has confirmed that these income sources are exempt from garnishment or seizure. The purpose of social assistance is to provide for the minimum needs of the recipients’ families. Therefore, the law protects the income from these sources so that the recipients would not fall below the poverty line.
However, if your debtor works and earns income from the employment, the income may be subject to garnishment even if they receive social assistance at the same time. The key is to identify the specific legislation that applies to the income source. Then, you can identify if the income is protected from garnishment or seizure.
It is important to note that even if your debtor’s income is protected, you may still be able to enforce your judgment through other means, such as seizing assets or putting a lien on their property. The key is to identify all potential sources of income and assets and determine which enforcement methods are most likely to be successful in your specific case.
If you are unsure about the exemption rules or the best way to proceed with enforcing your judgment, it is highly recommended that you seek legal advice. Our experienced lawyers can help you navigate the complex laws surrounding debt collection and develop a tailored strategy to maximize your chances of recovering the money you are owed.
Remember, just because your debtor is on social assistance or receiving a protected pension does not mean you have to give up on collecting your debt. With the right approach and legal guidance, you may still be able to find a way to get paid. Contact us today to learn more about your options and take the first step towards securing the money you are entitled to.