Enforcing Judgments in Ontario: Garnishment and Planning for Recovery

Winning Is Only Half the Battle: Can the Judgment Be Enforced?

One of the earliest and most important lessons in litigation is this: before pursuing a claim, particularly a debt recovery claim, it is not enough to ask whether the case can be won. You also need to ask whether a judgment can realistically be enforced.

A judgment on paper offers little value if there is no reasonable way to collect it. That is why enforcement should form part of the litigation strategy from the beginning, rather than being left until after trial. Before commencing litigation, it is worth considering whether the proposed defendant owns property, earns income, operates a business, maintains bank accounts, has receivables, or holds other assets. Where there is no realistic prospect of recovery, the cost and commercial value of the litigation should be carefully weighed.

What Does It Mean to Enforce a Judgment?

Enforcing a judgment means taking legal steps to turn the court’s decision into actual recovery. Suppose a court orders Mr. A to pay Mr. B $50,000. Mr. A is the judgment debtor and Mr. B is the judgment creditor. The judgment establishes the obligation to pay, but it does not guarantee that payment will be made voluntarily.

If the debtor does not pay, Ontario’s Rules of Civil Procedure provide several enforcement methods, including a writ of seizure and sale, garnishment, sequestration and, in appropriate cases, the appointment of a receiver. Two of the most commonly considered are garnishment and a writ of seizure and sale.

Garnishment

Under Rule 60.08 of the Rules of Civil Procedure, a judgment creditor may enforce an order for the payment or recovery of money by garnishing debts that a third party, known as the garnishee, owes to the debtor. Common examples include:

• wages payable by an employer;
• money held in the debtor’s bank account;
• commissions or other amounts payable to the debtor; and
• other debts owed to the debtor by third parties.

Whether garnishment is available and effective will depend on the nature of the funds, who holds them and the circumstances of the case.

Garnishing Wages

Special rules apply to wages. Under Ontario’s Wages Act, 80% of a person’s wages are generally exempt from seizure or garnishment, which usually means up to 20% may be garnished in an ordinary judgment enforcement proceeding. For support or maintenance orders, the exemption is 50%.

The percentage is not fixed in every case. On a creditor’s motion, a judge may decrease the exemption, having regard to the nature of the debt, the debtor’s financial circumstances and any other relevant matter. On the debtor’s motion, a judge may also increase it.

Why Enforcement Should Be Considered Before Litigation

For a client seeking payment, the objective is not simply a court order declaring that money is owed. It is recovering the money. Considering enforcement at the outset can shape decisions about whether to sue, how much to invest in the litigation, whether to pursue settlement and what information about the opposing party to gather before significant costs are incurred.

The key question is not only “Can we win?” It is also “If we win, how are we going to get paid?”

Need Help Recovering a Debt or Enforcing a Judgment?

If you have obtained a judgment but have not been paid, or you are considering litigation and want to understand the practical prospects of recovery, our office can help assess the available options. StellarEdge Law Firm can assist judgment creditors with garnishments, writs of seizure and sale, examinations in aid of execution and other judgment enforcement remedies in Ontario. Contact us to discuss your matter and develop a practical strategy for turning a judgment into meaningful recovery.