The Collection Process, Part 3: Seizure and Sale of a Debtor’s Assets
Garnishing wages only goes after cash. When a judgment debtor’s money isn’t accessible, their property might be. Here’s how bailiffs seize and sell vehicles, equipment, and even shares to satisfy a BC judgment.
Last week, we discussed the process of garnishing funds from a judgment debtor. That is a tool that goes directly after cash owed to the debtor.
In today’s post, we talk about the seizure and sale of other assets.
If a judgment debtor owns personal property – such as a vehicle, trade equipment, valuable paintings, and even everyday objects such as furniture, those items can be seized and sold to satisfy a judgment.
This process is completed by hiring a bailiff, who investigates the judgment debtor’s assets and will literally seize them from the judgment debtor’s home or business. The bailiff will then auction those goods off, and (after paying for the bailiff’s fees) provide the judgment creditor with the remaining funds.
Seizure and sale of goods can be an effective method of collection, if the judgment debtor has valuable personal property. Some individuals store their assets in gold or coins instead of with a bank – and so this can be a useful alternative to garnishment.
There are restrictions on seizure and sale of certain goods. For example, if a judgment debtor owns a car that is worth less than a certain amount, that car cannot be seized. Similarly, certain basic household items worth less than a fixed amount cannot be seized.
Seizure and sale of goods is often a somewhat effective method of collection, but is typically most effective for smaller judgments. If you are owed hundreds of thousands of dollars, it is unlikely that the judgment debtor will have personal assets worth the full judgment amount. If the debt arises from a small claims matter ($5,000 to $35,000) then this can be an effective and efficient method of collection.
One often overlooked area of seizure is the seizure of shares. If a judgment debtor has shares in a company, those can be seized, and are sometimes quite valuable.
The last three posts have talked about different collection methods. In next week’s post, we’ll talk about two methods of determining what assets a judgment debtor has.
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.
