Three Jobs, Three Garnishments… and One Very Determined Lender

A judgment can confirm what a debtor owes. Collecting it may take a separate plan, a realistic budget and more follow-up than the creditor expected.

One lender’s file illustrated that distinction particularly well. We had obtained a judgment, but the debtor had made it clear that voluntary payment was not on the agenda. Our client wanted to continue pursuing recovery, even if enforcement required additional work.

What followed involved three employers, three rounds of wage garnishment and a decision to keep reassessing the next step.

The first employer: one payment, then a change

We located the debtor’s employer and took the steps to garnish wages. A payment came in through the garnishment. Then the debtor left that job, and the payments stopped.

The judgment remained unpaid. The immediate recovery source had changed, so the file required further information before enforcement could move forward again.

For a corporate creditor, that is a useful distinction: obtaining a judgment and identifying a source of payment are different tasks. Our article on collections versus legal action explains why recovery prospects belong in the assessment before proceedings begin.

The second employer: the pattern repeated

Months later, we identified another employer and pursued garnishment again. Another payment followed. Then the debtor left that position as well.

Each change meant more work. Locating current employment, preparing the required documents and taking further enforcement steps added expense. Continuing was a decision for the lender to make with those costs in view.

Skip tracing and repeated filings are not automatically a sound investment simply because a creditor already has a judgment. The remaining balance, available information and expected recovery all matter.

The third employer: payments continued

We subsequently located a third employer and pursued garnishment there. This time, the debtor remained employed and payments continued until the balance was cleared.

The file reached the result the lender wanted, but it was not the least expensive route. It is an example of persistence producing a recovery on a particular file, rather than a promise that repeated enforcement will work on every account.

The business lesson: persistence needs a budget

Before authorizing another round of enforcement, a lender or credit team should review:

• The balance still outstanding. Reconcile payments and credits before deciding what to pursue.
• The quality of the information. An old employer name is different from a confirmed current payment source.
• The next step’s cost. Include searches, filing, service and representation where applicable.
• The realistic recovery prospect. Employment alone does not mean all earnings are available for garnishment.
• Alternatives and stopping points. Consider settlement, a payment arrangement or a pause for further information where appropriate.

Our debt recovery services focus on helping businesses and lenders connect those decisions to their commercial objectives. Reviewing fees and scope is part of that conversation.

Apply the rules for the province and the file

This story describes one client’s recovery experience. Garnishment procedures, wage exemptions and the steps required when employment changes depend on the applicable law and circumstances. Do not assume one notice follows a debtor automatically to a new employer or permits recovery of the entire paycheque.

For example, Ontario’s after-judgment guide explains wage garnishment and the need for correct employer information. BC’s guide to getting results explains its own enforcement process. Alberta has separate civil enforcement requirements; an enforcement plan should be assessed for the province concerned.

Precision Paralegal Services assists corporate clients with eligible recovery matters in Ontario, Alberta and British Columbia. If an unpaid judgment needs attention, book a consultation to discuss the information available, the likely costs and whether another enforcement step is worthwhile.

Explore our corporate debt recovery services for businesses and lenders in Ontario, Alberta and British Columbia.