Winning your case is only half the battle; to collect your money, you must enforce the commercial judgment. In Manitoba, you can file a Notice of Garnishment ($60 CAD) or obtain a Writ of Seizure and Sale ($30 CAD) through the Court of King’s Bench, with enforcement measures now carrying no expiration date.
Securing a favourable judgment from a judge is a massive relief for any business owner. ㊎ However, the court does not automatically collect the money for you. If the losing party (the judgment debtor) ignores the court order and refuses to write a cheque, you are left with a piece of paper that needs to be enforced.
Fortunately, Manitoba law provides powerful tools to help creditors recover their money. Whether the debtor’s business is located in Winnipeg, Selkirk, or Dauphin, you can take proactive legal steps to seize their assets or redirect their income. This guide explains how to navigate the enforcement process. If you need assistance tracking down assets, you can easily find a knowledgeable commercial lawyer in our directory to act on your behalf.
Step-by-Step Process to Enforce a Judgment in Manitoba
Before you can seize assets, you must translate your court victory into actionable enforcement measures. 📋 The procedures are strictly governed by the Court of King’s Bench Rules. Missteps in this process can lead to delays or extra costs, so attention to detail is crucial.
Step 1: Obtain and Register the Judgment Order
Once the judge rules in your favour, a formal Judgment Order must be drafted, signed by the judge, and entered into the court records. This is the official document proving that the debtor owes your business a specific sum of money.
In many cases, it is highly recommended to register your judgment in the Manitoba Personal Property Registry (PPR) or against the debtor’s real estate at the Land Titles Office. 🏘️ Registering this Certificate of Judgment against land (which costs $137.00 CAD for electronic filing or $144.00 CAD for paper filing through Teranet Manitoba) means the debtor cannot sell or refinance their property without first paying off the debt they owe you.
Step 2: Conduct an Examination in Aid of Execution
If you do not know where the debtor keeps their money, you can force them to reveal their financial situation. You or your lawyer can serve them with a requirement to attend an “Examination in Aid of Execution.”
During this examination, the debtor must answer questions under oath about their bank accounts, business assets, property, and income sources. 💼 They must also bring financial records. If they lie or refuse to attend, they can be held in contempt of court.
Step 3: Issue a Notice of Garnishment
Garnishment is often the fastest and most effective way to collect a commercial debt. If you know where the debtor banks, you can obtain a Notice of Garnishment from the Court of King’s Bench and serve it directly on their bank.
Once served, the bank is legally required to freeze the funds in the debtor’s account and forward the money to the court, which will then release it to you. 💲 You can also garnish payments owed to the debtor by third parties, such as their clients or accounts receivable.
Step 4: Execute a Writ of Seizure and Sale
If garnishment is not possible, you can target the debtor’s physical property. You can request a Writ of Seizure and Sale from the court. This document authorizes a sheriff or a court-appointed bailiff to visit the debtor’s premises in Manitoba and seize their non-exempt assets.
The bailiff can seize commercial equipment, vehicles, inventory, or electronics. 📦 These items are then sold at a public auction, and the proceeds (minus the bailiff’s fees) are used to satisfy your judgment.
How Much Does it Cost in Manitoba?
Enforcing a judgment requires spending a little more money upfront, but these costs can often be added to the total debt owed by the debtor. 💵 Budgeting for enforcement is an important part of your overall commercial litigation strategy.
- Court Filing Fees: Under the Court Services Fees Regulation (M.R. 150/2021), the fee for issuing a Notice of Garnishment is exactly $60 CAD, and the fee for issuing a Writ of Seizure and Sale is exactly $30 CAD.
- Registration Fees: Under the Teranet Manitoba fee schedule, registering a Certificate of Judgment at the Land Titles Office costs a flat fee of $137.00 CAD for electronic registration or $144.00 CAD for paper filing.
- Sheriff / Bailiff Fees: If you use a bailiff to seize assets, expect to pay a base fee of $200 to $500 CAD, plus towing, storage, and auction fees depending on the items seized.
- Lawyer Fees: If you hire a lawyer to handle the enforcement, hourly rates generally range from $300 to $600 CAD.
| Enforcement Tool | Best Used For | Estimated Upfront Cost (CAD) |
|---|---|---|
| Notice of Garnishment | Bank accounts, accounts receivable | $60 (Court fee) |
| Land Registration | Debtors who own commercial real estate | $137 – $144 (Teranet fee) |
| Seizure and Sale | Debtors with valuable equipment/vehicles | $30 (Court fee) + bailiff costs |
How Long Does the Process Take?
The timeline for collecting your money varies entirely on the enforcement method used and the debtor’s financial health. ⏱️ A successful Notice of Garnishment against a well-funded corporate bank account can result in funds being transferred to you within 3 to 6 weeks.
However, if the debtor is actively hiding assets, the process becomes much longer. Scheduling an Examination in Aid of Execution, tracking down property, and waiting for a bailiff to conduct a public auction can drag the collection process out for 6 to 12 months. Note that under Manitoba’s The Limitations Act, there is no limitation period for enforcing a local court order; judgments can be enforced indefinitely without any requirement to renew them.
Frequently Asked Questions (FAQ)
How long do I have to enforce a commercial judgment in Manitoba?
Under Section 3(1)(d) and 3(2) of Manitoba’s The Limitations Act (C.C.S.M. c. L150), which took effect on September 30, 2022, there is no longer a limitation period for enforcing a court judgment. Any Manitoba judgment issued after October 1, 2012, is valid indefinitely and can be enforced at any time without any court renewal application required.
Can I garnish a business’s bank account?
Yes. If the debtor is a corporation or business, you can garnish their corporate bank accounts. Unlike individual wage garnishments (which have strict exemption limits to allow people to live), commercial bank accounts can generally be seized in full up to the total amount of your judgment.
What happens if the business I sued declares bankruptcy?
If the judgment debtor files for bankruptcy or insolvency under federal law, an automatic “stay of proceedings” is triggered. This immediately halts all enforcement actions, including garnishments and seizures. You will then need to file a Proof of Claim with their bankruptcy trustee to try and recover a portion of your money.
Can I seize the business owner’s personal property?
It depends on the business structure. If the debtor is an incorporated company, you generally cannot seize the owner’s personal home or personal bank account. However, if the business is a sole proprietorship, the owner is personally liable, and you can enforce the judgment against their personal assets.
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