Winning your civil lawsuit is just the first step. To actually collect your money from a business in New Brunswick, you must use enforcement tools like a Notice of Seizure of a Debt to freeze their bank accounts or register your judgment with the Personal Property Registry and provide an Enforcement Instruction to the Sheriff’s Office to auction their physical assets.
Hearing a judge rule in your favour after a stressful commercial lawsuit is a moment of massive relief. However, the court does not automatically collect the money for you. If the losing business refuses to write a cheque, you are left holding a piece of paper that says they owe you money. This is where the judgment enforcement process begins. 💰
In New Brunswick, the law provides victorious plaintiffs (known as judgment creditors) with powerful legal mechanisms to force payment. Whether you are dealing with a construction company in Bathurst, a retail store in Moncton, or a tech firm in Miramichi, you must take active, strategic steps to trace their assets and legally extract the funds you are owed.
Step-by-Step Process in New Brunswick
Enforcing a judgment requires navigating specific rules within the Court of King’s Bench. You must systematically identify where the business keeps its money and use the court’s authority to seize it. 📍
Step 1: Obtain and Register the Certificate of Judgment
Before you can touch a single asset, you must formalize your win. Once the judge issues the order, your lawyer will obtain a Certificate of Judgment. You should immediately register this judgment with the Personal Property Registry (PPR) and the Land Registry in New Brunswick. Doing this places a legal lien on the company’s property, preventing them from selling real estate or vehicles without paying you first. Under the Enforcement of Money Judgments Act (EMJA), registering your judgment in the PPR is a mandatory prerequisite before the Sheriff can take any enforcement action against the debtor’s personal property.
Step 2: Conduct an Examination of a Judgment Debtor
If you do not know where the business banks or what assets they own, you can force them to tell you. 🔍 Under Part 5 of the EMJA, you can file an Application for Order to Attend (Form 1) and pay a $50 CAD fee to initiate an Examination of a Judgment Debtor. The business owner or director will be legally ordered to attend a formal hearing under oath. They must bring their corporate tax returns, bank statements, and client lists, allowing you to locate their cash and assets.
Step 3: Issue a Notice of Seizure of a Debt
One of the most effective ways to get paid is to intercept money before it reaches the business. Under New Brunswick’s EMJA, which repealed the old Garnishee Act, the traditional “garnishment” of bank accounts and accounts receivable is handled by the Sheriff issuing and serving a Notice of Seizure of a Debt. Based on your enforcement instructions, the Sheriff will serve this notice on the debtor’s bank or their clients. The recipient is legally required to freeze the funds and send them to the Sheriff’s Office to pay down your judgment debt.
Step 4: Seize Property via the Sheriff’s Office
If the bank accounts are empty, you can go after physical assets. 🚜 In New Brunswick, since the Enforcement of Money Judgments Act repealed the old Memorials and Executions Act, the traditional “Writ of Execution” has been completely eliminated. Instead, you must register your judgment in the Personal Property Registry (PPR) and submit a formal Enforcement Instruction to the Sheriff’s Office. The Sheriff has the authority to physically seize corporate vehicles, specialized equipment, or office furniture, which are then sold at a public auction to pay off your debt.
How Much Does it Cost in New Brunswick?
Chasing a stubborn debtor requires spending some additional money, though many enforcement costs can eventually be added to the total debt owed by the business. 💰
- Registration Fees: Registering your judgment in the Personal Property Registry or Land Registry usually costs under $100 CAD.
- Sheriff Fees: Engaging the Sheriff to seize property involves upfront fees, often ranging from $100 to $300 CAD, plus mileage and storage costs for any seized goods.
- Lawyer Fees: If you hire a civil litigation lawyer to manage the seizure of a debt or debtor examination, you will be paying hourly rates ($250 to $500+ CAD). Total costs depend on how hard the debtor hides their assets.
How Long Does the Process Take?
Collection timelines vary dramatically depending on whether the business has liquid cash or if you have to force an auction of their physical assets. ⚨
| Enforcement Method | Estimated Timeline in NB |
|---|---|
| Registering a Judgment Lien | 1 to 2 weeks |
| Notice of Seizure of a Debt (Bank Seizure) | 3 to 6 weeks once the bank is identified |
| Sheriff Seizure and Auction | 3 to 6 months |
Frequently Asked Questions (FAQ)
What happens if the business declares bankruptcy?
If the business formally files for bankruptcy or insolvency, an automatic “stay of proceedings” is triggered. This immediately halts all your enforcement efforts (like seizures of debts). You will become an unsecured creditor and must file a claim with the Licensed Insolvency Trustee.
Can I go after the business owner’s personal house?
Generally, no. If the business is an incorporated company (Ltd. or Inc.), it is a separate legal entity. Unless the owner signed a personal guarantee or you successfully proved massive fraud to “pierce the corporate veil,” you cannot touch their personal assets.
How long is my New Brunswick court judgment valid?
Under New Brunswick law, you generally have up to 15 years to enforce a civil judgment. It is vital to actively renew your registrations and liens before they expire.
Can I close their business down if they don’t pay?
You cannot directly revoke their business license, but aggressive enforcement can make it impossible for them to operate. If you garnish all their incoming cash and the Sheriff seizes their essential equipment, the business will likely have to close its doors voluntarily.
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