Chand & Co. has helped countless individuals and businesses collect on debts and enforce Ontario judgments. Our Toronto debt collection lawyer provides a unique commercial and consumer debt collection service for businesses and individuals across all industries. As  debt lawyers, we have more legal options in debt collection than a collection agency and can litigate through the courts when necessary.

Managing debt collection is of fundamental importance to the success of any business. The implementation and enforcement of an effective system is necessary. In Ontario, some procedures impose complex restrictions on your ability to collect on a debt. Getting results and initiating the process of commencing or resolving a collection action through the courts requires a skilled litigator. Our team of debt collection lawyers in Toronto has years of experience in this practice area and our experience can go a long way in ensuring you get back what you are owed. One of the issues that must be addressed before commencing a lawsuit or debt collection actions against a debtor is determining whether you are within your legal right to commence an action. In Ontario, the Limitations Act imposes a deadline of two years to sue for a debt. If more than two years have passed since you last received payment on the debt owing, you may be statute-barred from bringing an action against the debtor for the unpaid debt.

When you commence a lawsuit against someone, you do so with the expectation that if you are successful in court, you will be awarded a sum of money that is payable by the other party. When considering whether to bring a lawsuit against a debtor, there are a few things that must be taken into consideration. First on that list is whether the debtor has any assets as a way of paying you back the amount that is owed to you. If the debtor does not have a job, money in the bank, or assets, such as real estate or a car, you may be better off not spending further resources and time commencing an action. The term “judgment proof” is used to describe a debtor who is financially insolvent and whose income and assets, if any, cannot be obtained in satisfaction of a judgment. Although this is not a defence to a claim, it makes the enforcement of a judgment extremely difficult.

Getting awarded judgement in Ontario courts is often only the beginning of the process. Enforcing a judgment on the other hand can be frustrating, difficult, and time-consuming. An examination in aid of execution is often conducted which serves as a remedy for a creditor who has obtained a judgment against a debtor. At an examination in aid of execution, documents are provided by the debtor detailing their finances, assets, and debt. At this stage, the creditor has an opportunity to ask questions to the debtor under oath and in front of a court reporter to determine the debtor’s ability to pay on the judgment. The debtor is often hesitant to cooperate and a lawyer with experience in this area will know how to ask the right questions to get the creditors the best results.

Another option to enforce your judgement is having a writ of seizure and sale of land issued and filed with the court. A writ of seizure and sale of land can be filed against a debtor in any county or district where the debtor may own land. The writ not only serves to encumber any land presently owned by the debtor but also where the debtor may purchase land in the future. Having a writ of seizure and sale of land filed in the jurisdiction where the debtor owns land can be effective in the long run, making it difficult for the debtor to sell or remortgage their home without paying off the judgment.

A notice of garnishment can be issued and filed with a court and is another effective means of enforcing a judgment against the debtor. The notice of garnishment will have the information of the garnishee along with their address and the amount owing. The garnishee can be an employer, bank or someone who owes money to the debtor. Wage garnishment is the process of deducting money from the debtor’s salary through their pay cheque. The employer is legally obligated to fulfill their obligations as the garnishee and send the wage garnishment to the court until the debt is entirely paid off. If the employer fails to comply, some options allow creditors to sue the garnishee for collecting the full amount of the debtor’s judgment.