To collect unpaid rent after an eviction in PEI, you must convert your IRAC monetary order into a judgment at the Supreme Court of Prince Edward Island. The standard court filing fee is generally around $100 to $200 CAD, which then allows you to use a Sheriff to garnish wages or seize assets.
Dealing with unpaid rent is one of the most frustrating experiences for any property owner. When a tenancy ends due to non-payment, getting the tenant out is only half the battle. Recovering the money you are owed requires navigating the provincial legal system. In Prince Edward Island, the Island Regulatory and Appeals Commission (IRAC) handles the initial rental dispute, but they do not actively collect the money for you. You must take additional steps to enforce the monetary order.
This guide explains the exact process of turning your IRAC order into a legally binding court judgment. Whether your rental property is in Charlottetown, Summerside, or a rural PEI community, the enforcement process follows the same provincial rules. Generally, landlords choose to consult a local law firm to ensure the paperwork is filed correctly and without delays.
Step-by-Step Process in Prince Edward Island
Enforcing a rent collection order involves moving your case from the residential tenancy branch to the provincial court system. 📍 The Supreme Court of Prince Edward Island handles these matters. Here is how most applicants in this province proceed.
Step 1: Obtain a Final Order from the Director
Before you can collect a single dollar, you need a formal monetary order from the Director of Residential Rental Property (through IRAC). During your eviction hearing, you must specifically request an order for the outstanding rent. If the Director rules in your favour, you will receive a written document stating the exact amount the former tenant owes you.
Step 2: Wait for the Appeal Period to End
In PEI, neither party can enforce an order immediately. There is a mandatory appeal period, usually 20 days from the date the order is issued. During this time, the tenant has the right to appeal the decision to the Commission. If you try to enforce the debt before this period expires, the court will reject your application.
Step 3: Register the Order with the Supreme Court
Once the appeal period has passed, take your original IRAC order to the Supreme Court of Prince Edward Island. You can file this at the courthouse in Charlottetown or Summerside. By filing the document, it officially becomes a judgment of the Supreme Court, granting you powerful legal collection tools.
Step 4: Engage the Sheriff for Enforcement
With a registered judgment, you can now instruct the local Sheriff’s Office to collect the debt. 💵 You will need to fill out specific enforcement forms. The Sheriff can execute a garnishment order against the tenant’s wages or bank accounts, or in some cases, seize personal property to pay off the debt.
How Much Does it Cost in Prince Edward Island?
Enforcing a judgment involves several government fees. While these expenses are initially paid by the landlord, they can often be added to the total debt owed by the tenant.
- Supreme Court Filing Fee: Expect to pay between $100 and $200 CAD to register the IRAC order as a court judgment.
- Sheriff Enforcement Fees: Generally, opening a file with the Sheriff costs around $50 to $100 CAD, plus potential mileage or hourly fees if they must travel to seize property.
- Law Firm Fees: If you hire a lawyer to handle the Supreme Court filings and draft the garnishment documents, expect legal fees ranging from $500 to $1,500 CAD depending on the complexity of the enforcement.
| Enforcement Method | Estimated Upfront Cost (CAD) | Success Rate Dependency |
|---|---|---|
| Wage Garnishment | $100 – $250 | High (if tenant is legally employed in PEI) |
| Bank Account Seizure | $100 – $250 | Medium (must know where the tenant banks) |
| Property Seizure | $300+ | Low (many assets are exempt under PEI law) |
How Long Does the Process Take?
The timeline for collecting unpaid rent can be lengthy. Getting the initial order from IRAC typically takes 3 to 6 weeks. After the mandatory 20-day appeal period, registering the judgment at the Supreme Court takes only a few days. However, the actual collection process depends entirely on the tenant’s financial situation. If the former tenant is employed and you garnish their wages, you might start seeing monthly cheques within 4 to 8 weeks. If the tenant is unemployed or hiding their assets, collection could take months or even years.
Frequently Asked Questions (FAQ)
Can I hire a collection agency instead of using the court?
Yes, once you have the IRAC order, you can sell the debt or assign it to a private collection agency in Canada. However, they will take a large percentage of the recovered funds, often 30% to 50%.
What if the tenant moves to another province like Nova Scotia?
If the tenant moves out of Prince Edward Island, you must register your PEI Supreme Court judgment in the new province to enforce it. This usually requires the assistance of a lawyer in the new jurisdiction.
Is there a time limit to collect the unpaid rent?
Yes. In PEI, you generally have up to 10 years to enforce a judgment through the courts, though it is always best to start the process as soon as possible before the tenant’s financial situation changes.
Can the Sheriff seize the tenant’s car?
It is possible, but PEI law protects certain essential assets. If the vehicle is required for work or is worth less than a specific threshold, it may be exempt from seizure.
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