At Chand & Co., we have a strong debt collection team that can handle everything about debt collections. We will help you determine whether a debtor has assets, where the assets are located, and whether the debtor has fraudulently conveyed or hidden the assets. Our debt recovery lawyers pursue cost-effective debt recovery strategies. We have what it takes to provide a debt collection process to individuals and businesses across all industries.

Managing debt collection is crucial for every business. Proper debt recovery management mitigates the risk of bad debts, ensures a business has healthy cash flow, and enhances financial stability. It is a crucial part of managing your individual or business finances by ensuring that you recover the money rightfully owed to you. However, debt collection in Ontario can be challenging, given the intricate restrictions on your ability to collect on debts. If you intend to commence or resolve a collection action through the court, you need the help of an experienced debt collection lawyer. Our lawyers at Chand & Co. are always willing to go the extra mile to ensure you receive what you are owed.

Before we commence a lawsuit against a debtor, we will help you determine whether you have a legal right to commence the action. According to Ontario’s Limitations Act, you have two years from last receiving a payment for the outstanding debt. If more than two years have passed since you last received a payment from the debtor, you might not have the right to bring a lawsuit against the debtor for the debt owed.

The sole purpose of initiating a lawsuit against the debtor is to receive a payment. If you prevail in court, the court orders the debtor to pay you a sum of money. You must consider several factors before you decide to bring a lawsuit against the debtor. First, you must consider if the debtor is capable of repaying the debt. If the debtor has no income or assets that can be disposed to repay you, it’s best not to commence a lawsuit against them. Judgment proof applies if the debtor is financially insolvent and does not have sufficient assets to cover the debt. Judgment proof is not a defence. However, it makes it almost impossible to enforce a judgment.

You should not celebrate just yet when you are awarded judgment in Ontario courts. Enforcing a judgment is the hardest part, which is not only frustrating but also time-consuming. This process involves examining aid of execution. The debtor provides documents outlining their debts, finances, and assets. As the creditor, you will have an opportunity to question the debtor under oath in the presence of a court report. This questioning gauges the debtor’s ability to pay. Most debtors do not cooperate during this process. You need an experienced Ottawa debt collection lawyer to question the debtor on your behalf.

A writ of seizure and sale of land is another way of enforcing your judgment. You can file a writ of seizure & sale of land against the debtor in any district or county where the debtor has land. This writ encumbers any land owned by the debtor and any land the debtor may purchase in the future. The strategy of having a writ of seizure and sale of land is effective because it binds the debtor in the long term. The debtor cannot sell or remortgage the land without first paying off the amount owed to you.

Another effective way of enforcing a judgment against the debtor is by having a notice of garnishment issued and filed with the court. The details included in the notice of garnishment include the garnishee’s details, including their address and the amount owing. The garnishee can be the debtor’s employer, financial institution, or any other party that owes money to the debtor. Wage garnishment involves deducting money from the debtor’s salary or paycheck. The court can authorize the employer to fulfill the obligation of the garnishee. The employer remits the amount deducted to the court until the debtor pays off the loan in full. If the employer receives a wage garnishment order but fails to effect it, the creditor can file a lawsuit against the employer. A creditor can sue the employer for the entire amount of the debtor’s judgment. As the creditor, you will need the guidance of a debt collection lawyer to exercise this legal right.