The Collection Process, Part 4: Examinations and Subpoenas to Debtor
Garnishing wages only works if you know where the money is. In Part 4 of our Collection Process series, we break down how an examination in aid of execution and a subpoena to debtor can force a judgment debtor to reveal their assets — under oath.
In our last three blog posts we talked about the most common methods of collecting from a judgment debtor.
In each of those posts, however, there is some level of uncertainty with the collection methods: Garnishing is only effective if you know the bank account of the judgment debtor, for instance.
So, how do you learn that information?
There are two processes available: An examination in aid of execution, and a subpoena to debtor.
An examination in aid of execution is, essentially, an interview of the judgment debtor. The judgment creditor (usually through their lawyer) asks the judgment debtor questions about their assets, ability to pay the judgment, other debts, and similar questions. The judgment debtor is under oath or affirmation during this process – meaning they are obliged to tell the truth. They are also required to provide supporting documents (such as bank statements, mortgage documents, income tax returns, and similar) before the examination. This can be an effective tool to locate bank accounts, determine if seizure and sale of assets would be worthwhile, and learn of any additional properties the judgment debtor might own.
A subpoena to debtor is a similar process, but is held in front a registrar (a court official similar to a judge, with a narrower scope of powers). In this process, after the questions are asked and answered, the registrar may make orders which require the judgment debtor to pay the debt in instalments.
The benefit to both of these procedures is that they are not optional: failure to attend can result in the issuance of a warrant for the judgment debtor’s arrest. As such, they are very effective methods of gathering information.
The downside to these options is that they only provide information – no collection occurs at these events. Similarly, a registrar may make an order for payment that is unsatisfactory to the judgment creditor (e.g., the payments are monthly, and quite small).
These blog posts have explained the three most common methods of collection, and the ways of obtaining information on how to collect. In our final post in this series, we talk about the future of this process.
Disclaimer: This content is provided solely for informational purposes and is not intended for use in any legal proceeding. You should consult a qualified lawyer for advice tailored to your specific circumstances.
