Navigating Basic Judgment Enforcement in Alberta

Written by: Tanner Kovacs

Introduction

Oftentimes creditors are required to take steps in order to collect on Judgments obtained against debtors.

The Alberta Rules of Court, Land Titles Act, Civil Enforcement Act, and Civil Enforcement Regulation provide a number of mechanisms designed to assist creditors in enforcing their Judgments.

Writs of Enforcement

In the event a creditor obtains Judgment against a debtor and the debtor fails or refuses to satisfy the Judgment, the creditor will typically register a Writ of Enforcement (the “Writ”) at the Court of King’s Bench (the “Court”).

Once the Writ has been registered with the Court, the creditor may:

1.       Register the Writ at the Alberta Personal Property Registry (the “PPR Registration”); 

2.       Obtain a “name search” from Alberta Land Titles, which identifies the real property owned by the debtor (the “Debtor’s Lands”); and 

3.       Register the Writ against the Debtor’s Lands (the “Land Titles Registration”).

Personal Property Registry and Land Titles searches are routinely obtained by, among others, lenders and landlords when reviewing applications for financing or tenancy.

Accordingly, PPR Registrations and Land Titles Registrations may disincentivize third parties from establishing financial relationships with debtors, thereby oftentimes triggering the debtor to address the Judgment.

Furthermore, in the event a debtor sells lands that are subject to a Land Titles Registration, the proceeds of the sale may be used to satisfy the Judgment in exchange for a discharge of the Land Titles Registration.

If economically viable, the creditor may also serve the debtor with a “Notice of Intention to Sell”, thereby notifying the debtor of its intention to sell the lands against which the Land Titles Registration has been placed (the “Notice”). However, creditors should be mindful of other registrations against the debtor’s lands that may take priority over the Judgment.

Typically, the creditor will be required to wait 180 days following service of the Notice before applying to the Court to sell the debtor’s land.

Form 13/14 – Financial Statement of Debtor

Forms 13 and 14 are each referred to as a Financial Statements of Debtor (the “Financial Statement”) and, respectively, apply to individual debtors and financial debtors.

Pursuant to the Civil Enforcement Act and Regulation, a creditor is entitled to serve a Financial Statement upon a debtor, following which the debtor is required to complete and provide a copy of the same to the creditor within 15 days.

In the event the debtor fails or refuses to complete and serve the Financial Statement upon the creditor, the creditor may apply to the Court for an order compelling the debtor’s provision of a completed Financial Statement (the “Order”).

Should the debtor fail to comply with the Order, the creditor may be entitled to apply to hold the debtor in contempt of Court, the consequence of which can vary and may include costs awards, fines, or even detention.

Financial Statements are designed to disclose, among other things, information pertaining to the debtor’s employment, bank accounts, and assets to the creditor, which the creditor may utilize to enforce its Judgment.

Financial Statements are perhaps most commonly used to garnish debtors’ bank accounts in an effort to satisfy Judgments. 

*This article is not intended to provide legal advice. If you have specific questions related to your matter, please feel free to contact the writer, Tanner Kovacs, or any other practitioner in our litigation department.