Category Archives: Debt Collection Enforcement

A guarantee is often an essential part of debt financing. However, the personal liability of the person making the guarantee, or “guarantor,” may be called into question when the risk assumed by the guarantor changes because of circumstances surrounding the guarantee or transaction. What Is a Guarantee? The starting point for considering this aspect of […]

It is often thought that once a debtor makes an assignment in bankruptcy, it is no longer possible to pursue litigation against them. In some situations, this may be true. However, the Bankruptcy and Insolvency Act contains various exceptions to this general principle. This blog will outline some of those exceptions. Effect of Bankruptcy on […]

It is not uncommon for a plaintiff to commence a lawsuit in a particular jurisdiction where they believe it will result in a more favourable outcome for them or other strategic reasons. This practice is commonly known as “forum shopping.” Ontario courts have recently become more skeptical of the practice, and a recent decision helps […]

Enforcement against judgment debtors often requires recourse to Rule 60 of the Rules of Civil Procedure. The Rule sets out various enforcement mechanisms, including writs of seizure, sale, and garnishment. Rule 60.18 also sets out how a judgment creditor may examine a debtor about their income and property, also known as an examination in aid […]

Garnishment can be a powerful debt collection method by which a creditor can satisfy a judgment it obtains against a debtor. It is commonly used in the context of employment, where a debtor’s employer must turn over a portion of the debtor’s wages to the creditor. However, it can also be used in other contexts […]

We previously wrote about the doctrine of corporate attribution in the context of bankruptcy in Ernst & Young Inc. v. Aquino. This decision was followed by another decision of the Court of Appeal in Golden Oaks Enterprises Inc. v. Scott, which also concerned bankruptcy. One of the primary issues before the Court of Appeal in […]

Once a party obtains a final order or judgment from a Court, they may sometimes face the prospect of a motion from the opposing party to stay enforcement of that order or judgment.  Such stays are generally difficult to obtain, however.  Two recent Superior Court of Justice decisions are useful reminders of the legal tests […]

When debtors are sued for amounts owing under a contract, it is not unusual for them to plead the defence of non est factum.  This often serves as a defence of last resort.  However, it is a difficult defence to argue successfully as it only applies in a relatively narrow set of circumstances.  In this […]

Enforcement against judgment debtors often requires recourse to Rule 60 of the Rules of Civil Procedure.  The Rule sets out various enforcement mechanisms, including writs of seizure, sale, and garnishment.  Rule 60.18 also sets out how a judgment creditor may examine a debtor about their income and property, also known as an examination in aid […]

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 […]