Winning your lawsuit is only half the battle. To actually collect your money in Ontario, you must enforce the court’s judgment by filing a Notice of Garnishment to freeze the debtor’s bank accounts, or by registering a Writ of Seizure and Sale against their physical property.
When a judge rules in your favour and orders another business to pay you, they do not hand you a cheque on the spot. 🚨 The court simply issues a formal judgment confirming you are legally owed the money. If the losing party (the debtor) stubbornly refuses to pay, it is entirely your responsibility to track down their assets and force the payment. This collection process can be incredibly frustrating for small business owners who just want to be compensated fairly.
This guide will explain the legal mechanisms available to enforce a commercial judgment. Whether your case was decided at the Superior Court of Justice in Toronto, the Small Claims Court in Mississauga, or a courthouse in Ottawa, the rules for seizing a debtor’s assets are governed uniformly across the province of Ontario.
Step-by-Step Process in Ontario
Before you can seize anything, you must know where the debtor keeps their money. 📍 If you blindly guess their bank branch, your garnishment attempt will fail. Here is how corporate litigation lawyers successfully execute judgments:
Step 1: Conduct an Examination in Aid of Execution
If you have no idea where the debtor banks or what assets their corporation owns, you can legally force them to tell you. You can schedule an Examination in Aid of Execution (often called a Judgment Debtor Examination). The business owner must attend a formal hearing under oath and bring their corporate bank statements, tax returns, and client lists. Lying during this examination is perjury, and refusing to attend can result in a judge holding them in contempt of court.
Step 2: Issue a Notice of Garnishment
Once you locate their financial lifeblood, you can strike. 💳 A Notice of Garnishment is a court order that you send directly to the debtor’s bank (like RBC or TD) or to their major clients. The bank is legally required to freeze the corporate account and redirect any money inside it directly to the local courthouse, which then pays you. You can also garnish up to 20% of an individual’s wages if you are enforcing a judgment against a sole proprietor.
Step 3: Register a Writ of Seizure and Sale
If the debtor owns physical real estate, you must protect your claim. Your lawyer will file a Writ of Seizure and Sale with the local Sheriff’s office and register it against the specific municipality where the debtor owns property (for example, the Region of Peel or the City of Toronto). This puts a hard legal lien on their real estate. They will not be able to sell or refinance their commercial building or home without paying your judgment first.
Step 4: Direct the Bailiff to Seize Equipment
If the debtor operates a warehouse or a retail store, you can instruct the local court enforcement office (the Sheriff or a private bailiff) to physically visit the business. ⚔ They can legally seize physical assets, such as commercial delivery trucks, manufacturing equipment, or inventory, and sell them at a public auction to satisfy your unpaid debt.
How Much Does it Cost in Ontario?
Enforcement requires paying administrative court fees and hiring professionals to handle the physical seizures. 💵 As of March 2026, here is what you can expect to pay in CAD to enforce your judgment:
- Filing a Garnishment: The court fee to issue a Notice of Garnishment is roughly $144 CAD in Small Claims Court, or $150+ CAD in the Superior Court of Justice.
- Filing a Writ: Registering a Writ of Seizure and Sale with the Sheriff typically costs around $60 to $80 CAD per jurisdiction.
- Bailiff Seizure Fees: If you send a Sheriff to physically seize commercial trucks or equipment, you must usually pay a hefty deposit upfront (often $500 to $2,000+ CAD) to cover the towing, storage, and auctioning costs.
- Lawyer Fees: Having a law firm conduct an Examination and handle the garnishment paperwork generally costs $1,500 to $3,500 CAD.
| Enforcement Method | Target Asset | Effectiveness |
|---|---|---|
| Bank Garnishment | Corporate Bank Accounts | Fast and highly effective if timed right |
| Accounts Receivable Garnishment | Money owed by their clients | Excellent for B2B service companies |
| Writ of Seizure (Land) | Real Estate / Property | Slow, but guarantees eventual payment |
How Long Does the Process Take?
Collecting money tests your patience. ⏳ A successful bank garnishment can result in funds being transferred to the courthouse within 30 to 45 days. However, if you rely on a Writ of Seizure and Sale against real estate, you might have to wait several years until the debtor naturally decides to sell or refinance their property. If you want to force the immediate sale of their land, the legal process to do so is incredibly complex and takes well over a year.
Frequently Asked Questions (FAQ)
What happens if the debtor’s business declares bankruptcy?
If the corporate debtor officially files for bankruptcy under the federal Bankruptcy and Insolvency Act, all of your enforcement actions (including garnishments) are immediately halted. You become an unsecured creditor and will likely only receive a small fraction of what you are owed.
How long is an Ontario court judgment valid for?
In Ontario, a court judgment does not truly expire, but there are strict rules. You can easily enforce it for the first 6 years. If you wait longer than 6 years to start enforcing, you must ask a judge for special permission (leave) to issue a Writ or a Garnishment.
Can I garnish the personal bank account of the business owner?
If your judgment is exclusively against a registered corporation (e.g., ABC Moving Inc.), you can only seize corporate assets. You cannot touch the owner’s personal savings unless you specifically sued the owner personally and the judge held them liable.
Will the court find the debtor’s assets for me?
No. The Ontario Superior Court of Justice acts as a neutral referee. The court clerks and judges will not perform investigations, run credit checks, or locate the debtor’s bank accounts for you. You or your lawyer must do all the investigative legwork.
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