Winning a Small Claims Court lawsuit in Mississauga does not mean you automatically get paid. To force a debtor to pay, you must enforce the judgment by filing a Notice of Garnishment, which allows you to legally intercept up to 20% of their net wages directly from their employer.
Congratulations, you won your case at the Small Claims Court! The judge ruled in your favour, and the defendant has been officially ordered to pay you. However, many successful plaintiffs in Mississauga are shocked to discover that the court does not actually collect the money for you. 😞 If the debtor ignores the judge’s order and refuses to write a cheque, the burden is entirely on you to track down their assets.
Enforcing a judgment requires proactive legal steps. The most common and effective method of debt collection in Ontario is wage garnishment. We will explain exactly how to find out where the debtor works, how to navigate the paperwork at the Brampton Courthouse, and how to legally force their employer to redirect their paycheque into your pocket.
Step-by-Step Process for Wage Garnishment in Mississauga
Garnishing wages is a formal legal procedure. You cannot simply call the debtor’s boss and demand money. You must follow the strict rules of the Ontario Small Claims Court to ensure the garnishment is legally binding.
Step 1: Wait the Mandatory Period
After the judge issues the final order, the debtor technically has 30 days to voluntarily pay you or file an appeal. 🕒 You generally cannot begin aggressive enforcement actions like garnishment until this 30-day window has officially expired.
Step 2: Conduct an Examination Hearing (If Necessary)
To garnish wages, you must know the exact name and address of the debtor’s employer. If you do not know where they work, you can file a Notice of Examination. This legally forces the debtor to attend court and answer questions under oath about their employment, bank accounts, and assets. If they lie or fail to show up, they can be found in contempt of court.
Step 3: Complete the Notice of Garnishment
Once you have the employer’s details, you must fill out an Affidavit for Enforcement Request and a Notice of Garnishment. On these forms, you will be the “Creditor,” the person who owes you is the “Debtor,” and the employer is called the “Garnishee.” You must calculate the exact amount owed, including any post-judgment interest.
Step 4: File the Paperwork at the Courthouse
Bring these completed documents to the Small Claims Court counter (typically the A. Grenville and William Davis Courthouse for Mississauga matters). The court clerk will review your paperwork, stamp it, and officially issue the Notice of Garnishment.
Step 5: Serve the Employer and the Debtor
You must formally serve the Notice of Garnishment on the employer (the Garnishee) within a specific timeframe, and then serve a copy on the debtor. Once served, the employer is legally obligated to deduct a portion of the debtor’s wages every pay period and send those funds directly to the court, which will then issue a cheque to you.
How Much Does it Cost to Garnish Wages?
You have to spend a little bit of money to recover your judgment, but these enforcement costs are usually added to the total amount the debtor owes you.
- Examination Hearing Filing: If you need to force them to reveal their employer, the filing fee is $65 CAD.
- Notice of Garnishment Filing: The court fee to officially issue a garnishment is $144 CAD.
- Process Server Fees: Hiring a professional to properly serve the documents on the employer and debtor usually costs $100 to $200 CAD.
- Lawyer/Paralegal Fees: If you hire a legal professional to handle the collection process, they may charge $500 to $1,500 CAD, or work on a contingency percentage of the collected funds.
How Long Does the Process Take?
Collecting a debt is heavily dependent on the debtor’s employment stability. Garnishments are not an overnight fix.
| Enforcement Stage | Estimated Timeline |
|---|---|
| Waiting for Default | 30 days after the final judgment is ordered |
| Scheduling an Examination | Takes 2 to 4 months to get a hearing date |
| First Garnishment Payment | Usually arrives 30 to 45 days after the employer is served |
| Validity of the Garnishment | Remains active for up to 6 years, or until the debt is paid in full |
Dealing with a stubborn debtor is exhausting. If wage garnishment is not working (for instance, if they are self-employed or work under the table), a civil litigation lawyer can help you explore other aggressive enforcement methods, such as garnishing their bank account directly or placing a legal lien against their property or home in Mississauga.
Frequently Asked Questions (FAQ)
How much of their wages can I legally take?
Under the Ontario Wages Act, the maximum amount you can generally garnish is 20% of the debtor’s net (after-tax) wages per pay period. If the debtor is already subject to family support garnishments (like child support), your garnishment may be severely reduced or put on hold.
What happens if the debtor quits their job?
If the debtor quits or is fired, the wage garnishment automatically stops because there is no more income to intercept. The employer must notify the court. You will then have to track down their new employer and start the Notice of Garnishment process all over again.
Can I garnish a joint bank account instead?
Yes. If you know where the debtor banks, you can serve a Notice of Garnishment on the bank branch. However, garnishing a joint account is complicated; under Ontario rules, you can typically only seize 50% of the funds in a joint account to protect the innocent co-owner’s money.
Can the employer refuse to garnish the wages?
No. A Notice of Garnishment is a strict court order. If an employer ignores the notice and pays the debtor their full wages anyway, the employer can be held legally responsible to pay you the money out of their own corporate pocket.
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