Winning a lawsuit in Toronto does not mean you automatically get paid. You must enforce the judgment by obtaining a Notice of Garnishment, which legally allows you to intercept up to 20% of the debtor’s net wages or directly seize funds from their bank account.
Hearing a judge rule in your favour at the Toronto Small Claims Court is a fantastic feeling. You have proven your case, and the court has ordered the defendant to pay you what you are owed. Unfortunately, the court does not automatically collect the money on your behalf.
If the losing party (the debtor) stubbornly refuses to write you a cheque, you must take proactive steps to force payment. 📍 Garnishment is the most powerful and common enforcement tool in Ontario, allowing you to legally redirect the debtor’s money straight into your pocket.
Step-by-Step Garnishment Process in Toronto
To successfully garnish a debtor, you must play the role of an investigator. The court will issue the orders, but you or your paralegal must tell the court exactly where the debtor’s money is located.
Step 1: Understand the Timing of Enforcement
Unlike some jurisdictions, under Ontario’s Guide to Procedures in Small Claims Court – After Judgment, you do not have to wait 30 days to begin enforcement. You are legally entitled to start garnishment proceedings immediately after the judgment is issued, unless the court has specifically ordered a monthly payment schedule or granted a temporary stay of execution.
Step 2: Locate the Debtor’s Assets
You need to know where the debtor works or where they bank. 🔍 Look at past cheques they wrote to you to find their bank branch, or check their LinkedIn profile to verify their current Toronto employer. You must have the exact legal name and address of the bank or the employer (the “Garnishee”).
Step 3: File the Garnishment Forms
You must fill out an Affidavit for Enforcement Request detailing how much is still owed, along with a Notice of Garnishment form. Take these forms to the Toronto Small Claims Court counter to have them officially issued and stamped by the court clerk.
Step 4: Serve the Garnishee and the Debtor
The issued Notice of Garnishment must be legally served on the bank or the employer first, and then on the debtor within 5 days. 📧 Once the employer receives it, they are legally bound to deduct up to 20% of the debtor’s net pay and send those funds directly to the court, which will then disburse them to you.
How Much Does it Cost in Toronto?
Enforcing a judgment requires spending a little more money upfront, but these enforcement costs are automatically added to the total amount the debtor owes you.
| Enforcement Expense | Estimated Cost (CAD) |
|---|---|
| Filing Notice of Garnishment | $144 (payable to the court) |
| Process Server Fees | $100 – $300 (per service) |
| Paralegal Enforcement Service | $500 – $1,500+ |
| Examination Hearing (Optional) | $68 filing fee |
- Adding Costs to the Debt: Keep all your receipts. The court filing fees and reasonable process server costs are legally added to the debtor’s outstanding balance.
- Examinations: If you do not know where the debtor works or banks, you can pay a fee to force them into an Examination Hearing, where they must testify under oath about their finances.
How Long Does the Process Take?
Once you serve a Notice of Garnishment on a bank, they usually freeze the account immediately and remit the funds to the court within a few days. ⏱ For wage garnishments, the employer will start deductions on the next pay cycle. The court holds the funds for 30 days before issuing a cheque to you. A garnishment order remains valid for 6 years and can be renewed.
Frequently Asked Questions (FAQ)
Can I garnish 100% of their paycheck?
No. Under the Ontario Wages Act, the maximum amount you can garnish is 20% of the debtor’s net wages (after taxes and mandatory deductions). If the debt is for child or spousal support, that limit increases to 50%.
What happens if the debtor is an independent contractor?
If the debtor is a freelancer or independent contractor, they do not earn traditional “wages.” Instead, you can garnish the businesses that owe them money (their clients) for 100% of the invoice amount.
Can I garnish a joint bank account?
Yes, but with strict limitations. Under Rule 20.08(2) of the Rules of the Small Claims Court, you are generally permitted to garnish only up to 50% of the balance in a joint bank account. Furthermore, you must ensure the co-owner of the account is formally served with a Form 20G (Notice to Co-owner of Debt) so they have an opportunity to dispute the garnishment if they can prove the funds belong solely to them.
Are any types of income exempt from garnishment?
Yes. You cannot garnish Employment Insurance (EI), Canada Pension Plan (CPP), Ontario Works (OW), or Ontario Disability Support Program (ODSP) payments. These funds are strictly protected by law.
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