Limitation periods are the time in which a party must start their claim against another party. If a party fails, they lose the right to commence the claim and all or benefit from its accompanying remedies. In Ontario, the Limitations Act outlines the basic two-year limitation period which applies to most claims. The limitation period […]
Category Archives: Debt Collection Enforcement
Pandemic Equipment Business Tries to Back Out of Promissory Note
Getting into a business arrangement with a new partner can be an exciting time, with the prospect of new opportunities and successes on the horizon. Therefore, it is essential to ensure that a new business is structured correctly to maximize success. However, from time to time, business deals may not go as planned, and disputes […]
The Presumption of Undue Influence
The equitable doctrine of undue influence is there to prevent one person from taking advantage of their position of power and authority over another person. This inequity in power between parties can vitiate the weaker party’s consent to an agreement, as they were unable to freely exercise their independent will. In other words, they would […]
Judgment Debts, Fraud and Bankruptcy
Many people assume that bankruptcy protects them from all creditors, across the board, however, this is not the case. In certain circumstances, debts may still be enforced even after a discharge in bankruptcy. When a creditor sues a debtor and a judgment is awarded, this judgment may survive an assignment into bankruptcy in certain circumstances. […]
Mortgage Enforcement and Penalties
Introduction The general commercial practice for lenders is to include a contractual term imposing a greater interest rate if the loan goes into arrears. This is both an incentive and a deterrent. The borrower is motivated to keep the loan from defaulting and is, therefore, more likely to pay on time to prevent the increased […]
Annulling An Assignment into Bankruptcy
Introduction: The life of a creditor in the commercial world is not always easy. Debtors will manufacture defences, avoid summary judgment etc. Debtors may sometimes turn to the Bankruptcy and Insolvency Act (BIA) for relief. They make an assignment into bankruptcy to bring their financial problems to a resolution, usually in the hopes of paying […]
A Saga of Debt Avoidance
Both the Ontario Superior Court of Justice (“ONSC”) and the Court of Appeal for Ontario (“ONCA”) have each had a share of the ongoing debt collection saga between a judgement creditor and the debtor company in Lo Faso v. Ferracuti. The latest battle, discussed below, deals with the issue of whether, and when, amendments sought […]