Civil enforcement: Collecting on a court judgment

Winning a lawsuit is only the first step. You can have a valid judgment saying you are owed money, but the debtor may have little or no income, property, or money available to collect. Enforcement can only work if there is something to enforce against. This is often the biggest practical challenge in collecting on a judgment. 

That is why it is important to consider the debtor’s ability to pay before you sue.

Before you start a lawsuit, you must think carefully about whether the person you are suing is likely able to pay a judgment if you win. 

Ask yourself practical questions about the debtor's financial situation. For example:

• What is the debtor's source of income? Income sources could include wages from a job, a business, or government benefits.
• What assets do they own? Assets include land, bank accounts, and vehicles.

Even if you have a strong claim, a lawsuit may not be worthwhile if there is little realistic chance of collecting on a judgement.

Enforcement is not always one single process. The step you take depends on what you know about the debtor and what asset you are trying to reach. In Nova Scotia, common enforcement options include:

• Registering a judgment-related document in the Personal Property Registry (PPR)
• Recording the judgment against the debtor’s land
• Getting an Execution Order and asking the Sheriff to garnish wages or seize money
• Getting an Execution Order and asking the Sheriff to seize and sell personal property

If the court ordered the return of specific goods, a Recovery Order may also be available.

If you want the Sheriff to garnish wages, seize money from a bank account, or seize and sell personal property, you will generally need an Execution Order issued by the court. The Execution Order will follow a form set out in the Civil Procedure Rules. Once issued, this order gives the Sheriff the legal authority to take enforcement actions. The Sheriff will also need practical information about the debtor’s employer, bank, or other assets before taking enforcement steps.

If you want the Sheriff to act on an Execution Order, you must generally register the certificate of judgment in the Personal Property Registry (PPR). The Sheriff will not take steps to enforce an execution order until you provide the Verification Statement as proof of PPR registration. 

If the debtor owns land, you may be able to record the judgment against that land through the Land Registration Office. This can affect the debtor’s ability to sell or mortgage the property without dealing with the judgment. The registration is generally effective for 5 years and may be renewed up to 3 times, for a total of 20 years, if each renewal is done on time. If the judgment has been recorded against land for at least 1 year, you may then be able to ask the Sheriff to take steps toward a sale of the land.

1. There are rules about how much a person’s wages can be taken

The law places limits on how much of a person's pay can be taken, or garnished, to ensure they can still live. The Sheriff can take a maximum of  15% of a debtor's gross wages. Also, a person is allowed to keep a minimum amount of net income each week. For a person with a dependent, this minimum is $450 per week. For a person without dependents, it is $330 per week. 

2. Some of the debtor’s property is protected from being seized

The Sheriff can only seize certain possessions. The law protects specific items so the debtor can maintain a basic standard of living and earn a living. These items are exempt from seizure. Examples of exempt property include:

• Necessary clothing and food.
• Basic household items.
• Tools of the trade up to a certain value.

The law ensures that even after losing a lawsuit, the debtor has the means to live and continue working. 

If your court order is for child support or spousal support, the enforcement process is different from the process for most other civil debts. 

In Nova Scotia, support orders are generally enforced through the Maintenance Enforcement Program (MEP), a free government service that collects support payments. 

Once an order is being enforced through MEP, only MEP can decide how to enforce it, and a regular Execution Order generally cannot be used to enforce the support payments. One rare exception may apply if MEP provides written confirmation that it cannot enforce a particular term of the order.

MEP has enforcement powers that ordinary civil creditors do not, for example:

• Collecting directly from the debtor’s federal payments, like tax refunds.
• Suspending the debtor's driver’s license.
• Reporting the debt to credit bureaus.

If support is set out in a separation agreement rather than a court order, the agreement must generally be registered with the court first before MEP can enforce it as a court order. 

If you are already enrolled in MEP, you must use their process instead of a separate Execution Order. You should check with MEP before trying to enforce a support order on your own. 

Collecting a judgment can involve several people or offices, depending on which enforcement step you use.

Judgment Creditor: This is the person or organization who won the lawsuit and is owed money or the return of property. If you are enforcing the order, you are the judgment creditor.

Judgment Debtor: This is the person or organization who owes money or must return property under the court order.

Sheriff’s Office: The Sheriff may help enforce certain court orders. For example, the Sheriff may act on an Execution Order to garnish wages, seize money, or seize and sell personal property. The Sheriff may also act on a Recovery Order to seize goods that were ordered returned. The Sheriff will usually need the proper court document, proof of any required PPR registration, and enough information about the debtor’s assets or their location before acting.

Land Registration Office / Personal Property Registry: These offices do not collect the money for you, but they are part of the enforcement picture. Recording a judgment against land may affect the debtor’s ability to sell or mortgage land. Registering in the Personal Property Registry (PPR) may affect the debtor’s dealings with personal property and is generally required before the Sheriff will act on an execution order.

Sometimes, other people may also become involved:

Licensed insolvency trustee: If the debtor files for bankruptcy, bankruptcy law may stop or limit ordinary enforcement steps. A licensed insolvency trustee then takes control of the debtor’s non-exempt assets for the benefit of creditors under the bankruptcy process.

Personal Representative (Executor or Administrator): If the debtor dies, enforcement may have to proceed through the debtor’s estate rather than directly against the debtor. 

Enforcement often takes a long time. It is important to know that a court judgment is not a fast, guaranteed cheque.

How long enforcement rights can last

A court judgment or order takes effect when it is issued, unless it says otherwise. 

The steps used to enforce that judgment have their own time limits. An Execution Order usually expires 5 years after it is issued unless the court extends it. A judgment may also be registered against personal property in the Personal Property Registry for 1 to 20 years from the date the judgment was issued. If the debtor owns land, a judgment recorded against land is generally effective for 5 years from the date of the judgment and may be renewed up to 3 times, for a total of 20 years.

How long enforcement takes in practice

The actual process of collecting the money is often slow and incremental. It is rarely a one-time event where all the money is collected at once.

• Choosing and setting up the enforcement step: The time involved depends on what you are trying to enforce against. For example, you may need to get an Execution Order, register the appropriate document in the PPR, record the judgment against land, or provide the Sheriff with detailed information about the debtor’s employer, bank, or property. These steps can all take time
• Garnishment over time: If wages are garnished, collection usually happens bit by bit each pay period. Because only part of the debtor’s wages can be taken, it may take many months or longer to collect the full amount.
• Discovery in Aid of Execution: If you need help finding the debtor’s assets, you may be able to use Discovery in Aid of Execution. This can require the judgment debtor to answer questions under oath and provide documents about their finances. A subpoena for the judgment debtor may be issued by the Prothonotary. If you want discovery from someone else, you generally need a judge’s order.
• Sale of property: If the Sheriff seizes personal property, arranging seizure, storage, advertising, and sale can take time and may involve added costs. If you record the judgment against the debtor’s land, you generally must wait at least 1 year before asking the Sheriff to take steps toward a sale of the land.

You should expect enforcement to be time-consuming and sometimes difficult. You may also have to pay filing fees, registration fees, deposits, Sheriff’s fees, and other enforcement costs along the way.

The first step is to give the debtor a chance to pay on their own. Sometimes the debtor pays after the court order is issued, or makes payment arrangements that are followed. If that happens, no further enforcement steps may be needed. If the debtor does not pay, you must decide which enforcement option fits what you are trying to collect.

Before choosing an enforcement step, gather as much information as you can about the debtor’s situation. 

Depending on the option you want to use, this may include where the debtor works, where they bank, whether they own land, or what personal property or goods they have and where those items are located. The more information you have, the more likely enforcement will be effective. 

If you do not have enough information, you may be able to use Discovery in Aid of Execution to require the judgment debtor to answer questions under oath and provide documents about their finances. A subpoena for the judgment debtor may be issued by the court’s Prothonotary. If you want discovery from someone else, you generally need a judge’s order.

You may use one or more of these options, depending on the circumstances:

Option A: Register against land

If the debtor owns land, you can ask the court office to prepare a Certificate of Judgment and record it at the Land Registration Office in the county where the land is located. This creates a lien on the land. It will affect the debtor’s ability to sell or mortgage the land without dealing with your claim. If one year passes and you still have not been paid in full, you may then ask the Sheriff to take steps toward sale of the land. 

Option B: Register in the Personal Property Registry (PPR)

This option does not by itself make the Sheriff collect money for you. It is a registration step. You can register the court order, execution order, or certificate of judgment in the PPR. If you later want the Sheriff to act on an Execution Order, you will need to provide the Verification Statement from that registration.

Option C: Get an Execution Order to collect money

If you want the Sheriff to garnish wages or seize money from a bank account or another third party, you will usually need an Execution Order. You must apply to the court to get this order.

You must also register the appropriate document in the PPR and give the Sheriff the Verification Statement from that registration. The Sheriff will also need details such as the debtor’s employer, bank, or other source of funds.

Option D: Get an Execution Order to seize and sell personal property

If you want the Sheriff to seize and sell personal property, you will usually need an Execution Order. You must request it from the court office. You must also register the appropriate document in the PPR and give the Sheriff the Verification Statement from that registration. The Sheriff will need detailed information about the property, including what it is, any identifying numbers, and where it is located. 

Option E: Get a Recovery Order for goods ordered returned

If the court ordered specific goods to be returned to you, you can ask the court for a Recovery Order and then ask the Sheriff to try to recover those goods and return them to you. To do this, you should provide as much detail as possible about the goods, including what they are, any identifying numbers or features, and where they are located.

If you are asking the Sheriff to enforce an Execution Order, the Sheriff will need the required court document, proof of registration in the PPR if applicable, and practical information about the debtor’s employer, bank, property, or goods. The Sheriff will not take steps on an execution order until the creditor provides proof of registration in the PPR. 

Some enforcement options only remain effective if registrations are renewed on time. For example, an Execution Order in Nova Scotia usually expires 5 years after it is issued, unless it is renewed by the court. PPR registrations must be kept current, and land-related registrations must also be renewed within their own time limits. 

Because enforcement can take months or even years, it is important to watch these deadlines carefully. You may have to pay filing fees, registration fees, deposits, Sheriff’s fees, and other costs depending on the enforcement option you choose.

Enforcement can take time. If the collection is not successful right away, that does not always mean enforcement is over. If you later learn new information, such as a new employer, bank account, or asset, you can provide that information to support further enforcement steps.

Note that the Sheriff will deduct their own fees from the money they collect.  

An appeal is when the losing party asks a higher court to review the decision. In Nova Scotia, filing an appeal does not automatically stop enforcement. To pause collection, the debtor usually needs to ask for a stay of execution or enforcement. 

If a stay is granted, enforcement is suspended until the appeal is resolved. The court may grant a stay on terms it considers just, or refuse the stay and allow enforcement to continue. 

If the debtor moves to another Canadian province or territory, or to another country, you may need to take additional legal steps in that place before you can enforce the judgment there. 

In some places, simplified registration procedures are available, and in others, a different court process may be required. The exact process depends on the law of the place where enforcement is sought. You should consult a lawyer who practices in that area.

If the debtor files for bankruptcy, ordinary enforcement steps may be stopped or limited by federal bankruptcy law. A licensed insolvency trustee may then take control of the debtor’s non-exempt assets for the benefit of creditors. 

In many cases, a judgment creditor becomes one of the creditors in the bankruptcy process and may receive only part of what is owed, or nothing at all, depending on the debtor’s assets and the claims of other creditors.

Deliberately hiding or transferring assets to avoid paying a judgment is sometimes called divesting. This can be fraudulent and illegal.

If you do not know what assets the debtor has, you may be able to use Discovery in Aid of Execution. This can require the judgment debtor to answer questions under oath and provide documents about their finances. A Discovery Subpoena in Aid of Execution for the judgment debtor is issued by the prothonotary. 

If you want discovery from someone other than the judgment debtor, you generally need a judge’s order. If assets were transferred to avoid payment, separate legal steps may sometimes be needed to challenge that transfer. Even then, the practical problem remains the same: enforcement only works if assets or income can be found. 

Joint ownership means two or more people own an asset together, like a house or a bank account. It can make enforcement more complicated.

Joint bank accounts: If a debtor shares a bank account with someone else, the law assumes the debtor owns an equal share of the money unless someone proves otherwise. For example, in an account with two people, the law assumes the debtor owns 50%.

When the Sheriff tries to take money from a joint account, the bank must give notice to the account holders. Unless an interested person files the required court motion within 10 days after notice is delivered, the bank must pay the presumed share to the Sheriff.

Jointly owned land: If the debtor owns land jointly with someone else, you may still be able to record the judgment against the debtor’s interest in that land. But forcing a sale can be more complicated when another person also owns the property.

Jointly owned vehicles or other personal property: If property is jointly owned, enforcement may depend on the debtor’s actual interest in it and on the rights of the co-owner. That can make seizure and sale more difficult.