Creditors' Relief Act, 2010

Bills that amended this Act0

No published amendment links yet for this Act.

Sections44

• 1Definitions

  1 (1) In this Act, “county” means a county or district described in section 151 of the Courts of Justice Act; (“comté”) “judge” means, in respect of a county in which a sheriff carries out duties under this Act, a judge of the Superior Court of Justice who sits in that county. (“juge”) 2010, c. 16, Sched. 4, s. 1 (1). Application of Execution Act definitions (2) Terms defined in the Execution Act have the same meaning in this Act. 2010, c. 16, Sched. 4, s. 1 (2).

• 1.
• 2No priority among execution or garnishment creditors

  2 (1) Except as otherwise provided in this Act, there is no priority among creditors by execution or garnishment issued by the Superior Court of Justice, the Family Court of the Superior Court of Justice and the Ontario Court of Justice. 2010, c. 16, Sched. 4, s. 2 (1). Exception, Small Claims Court (2) Subsection (1) does not affect the priority of, (a) a creditor by garnishment issued under the Small Claims Court Rules made under the Courts of Justice Act; or (b) a creditor by writ of seizure and sale of personal property issued under the Small Claims Court Rules made under the Courts of Justice Act. 2010, c. 16, Sched. 4, s. 2 (2). Exception, support or maintenance orders (3) A support or maintenance order has the following priority over other judgment debts, other than debts owing to the Crown in right of Canada, regardless of when an enforcement process is issued or served: 1. If th…

• 2.
• 3Garnishment, attachment of debt to be for benefit of all creditors

  3 (1) A creditor who attaches a debt by garnishment the proceeds of which are paid to the sheriff is deemed to do so for the benefit of all execution creditors of the debtor as well as his or her own benefit. 2010, c. 16, Sched. 4, s. 3 (1). To which sheriff payment is made (2) Payment of the debt is to be made to the sheriff for the county in which the debtor resides or, if the debtor resides outside the Province, to the sheriff for the county in which the proceeding that gave rise to the judgment was commenced. 2010, c. 16, Sched. 4, s. 3 (2). Exception re garnishment in specified courts (3) This section does not apply to a debt attached by garnishment in the Small Claims Court, the Ontario Court of Justice or the Family Court of the Superior Court of Justice unless, before the amount recovered by garnishment is actually paid to the creditor, an execution against the property of the de…

• 3.
• 4Sheriff to record receipt of money

  4 (1) On receipt of money under an execution, by garnishment or in respect of a debt that has been attached or sold under section 15 of the Absconding Debtors Act, the sheriff shall promptly record the amount received with respect to the debtor and the date of receipt. 2010, c. 16, Sched. 4, s. 4 (1). Right of creditors to share (2) Subject to subsections (4) and (5) and any claims having priority under section 2, the money received shall be shared proportionately among, (a) all execution creditors whose executions were filed with the sheriff at the time the sheriff received the money or who filed an execution with the sheriff within a one-month period after the date the sheriff received the money; and (b) the garnishment creditor, if any of the money was received by reason of garnishment proceedings, but the garnishment creditor may share only to the extent of the amount received by rea…

• 4.
• 5Rights of creditors in case of interpleader proceedings

  5 (1) The following rules apply if proceedings are taken by an interested party for relief relating to interpleader: 1. Only those execution creditors who are parties to the proceedings and who agree to contribute proportionately to the expense of contesting any adverse claim, according to the amount of their executions, are entitled to share in any benefit that may be derived from contesting the claim. 2. The execution creditors referred to in paragraph 1 may share in any benefit that may be derived from contesting the claim only to the extent necessary to satisfy their executions. 2010, c. 16, Sched. 4, s. 5 (1). Order as to carriage of proceedings (2) The judge making the interpleader order may direct, (a) that one execution creditor have carriage of the interpleader proceedings on behalf of all interested creditors; and (b) that the costs of the proceedings be as between lawyer and c…

• 5.
• 6Effect of payment or withdrawal

  6 (1) Section 4, other than subsection 4 (1), does not apply if, (a) without a sale by the sheriff, a debtor pays, (i) the full amount owing in respect of all executions then filed with the sheriff, including costs, or (ii) part of the amount owing in respect of an execution and no other executions have been filed with the sheriff; (b) the money received is by reason of garnishment and is, (i) sufficient to pay the full amount of the debt in respect of which the garnishment was issued and all executions then filed with the sheriff, including costs, or (ii) part of the debt in respect of which the garnishment was issued and no executions have been filed with the sheriff; or (c) all executions filed with the sheriff are withdrawn. 2010, c. 16, Sched. 4, s. 6 (1). Sheriff may apply the money (2) In a situation described in clause (1) (a) or (b), the sheriff shall apply the money to satisfy,…

• 6.
• 7Application

  7 (1) This section applies if, (a) proceedings have been taken against a debtor under the Absconding Debtors Act; (b) the debtor’s property has been attached under an order of attachment before any executions have been filed with the sheriff; and (c) the money received by the sheriff is all or part of the proceeds from the property. 2010, c. 16, Sched. 4, s. 7 (1). Priority for costs (2) The cost of the order of attachment or, if there is more than one, the cost of the first order of attachment filed with the sheriff and the cost of the proceedings under the Absconding Debtors Act have priority over the claims of other creditors. 2010, c. 16, Sched. 4, s. 7 (2). Money paid into court

• 7.
• 8Application

  8 (1) This section applies if, (a) an amount has been paid into court that belongs to an execution debtor or to which the execution debtor is entitled; and (b) one or more executions have been filed with the sheriff. 2010, c. 16, Sched. 4, s. 8 (1). Payment to the sheriff (2) At the request of an execution creditor, the sheriff may, for the purpose of distribution under this Act, demand and receive from the court the amount paid into court or, if only part of that amount is necessary to satisfy all executions filed with the sheriff and any claims having priority, an amount sufficient to satisfy the executions and claims. 2010, c. 16, Sched. 4, s. 8 (2).

• 8.
• 9Receiver appointed by creditor

  9 (1) This section applies if a judgment creditor obtains the appointment of a receiver by way of equitable execution of property of the creditor’s debtor. 2010, c. 16, Sched. 4, s. 9 (1). Payment into court (2) The receiver shall pay into court all money received by virtue of the receivership. 2010, c. 16, Sched. 4, s. 9 (2). Application of s. 9 (3) Subsection 9 (2) applies except that the judgment creditor is entitled to be paid out of that money the costs of and incidental to the receivership order and the proceedings, in priority to the claims of other creditors. 2010, c. 16, Sched. 4, s. 9 (3). Personal property held by Small Claims Court bailiff

• 9.
• 10Application

  10 (1) This section applies if, (a) the sheriff does not find property of an execution debtor that is sufficient to satisfy all amounts in respect of executions filed with the sheriff; and (b) the sheriff is advised that the bailiff of the Small Claims Court holds personal property of the debtor or proceeds from personal property of the debtor under an execution or attachment against the debtor. 2010, c. 16, Sched. 4, s. 10 (1). Demand and delivery (2) At the request of an execution creditor, the sheriff shall demand the property or proceeds from the bailiff and the bailiff shall promptly deliver to the sheriff, (a) the property or proceeds; (b) a copy of every execution and attachment against the debtor that has been filed with the bailiff; and (c) a memorandum showing the amount to be paid under each execution, including the bailiff’s fees, and the date when each execution and attachme…

• 10.
• 11Allocation

  11 (1) If the sheriff does not find money or property of an execution debtor that is sufficient to satisfy all amounts in respect of executions filed with the sheriff, the sheriff shall, (a) allocate an amount equal to the full taxed costs and the costs of the execution to the creditor at whose instance and under whose execution the seizure was made, if the creditor is entitled to priority for those costs under this Act; and (b) allocate the balance then remaining rateably among the creditors after taking into consideration any claims having priority under section 2. 2010, c. 16, Sched. 4, s. 11 (1). Schedule of proposed distribution (2) The sheriff shall prepare a schedule setting out, (a) the names of the creditors entitled to share in the distribution; (b) the amount due to each of the creditors for principal, interest and costs; (c) the total amount available for distribution to the …

• 11.
• 12Application to judge

  12 (1) Not more than eight days after filing an objection, the objector shall, (a) apply to the judge for an order resolving the matter in dispute; and (b) obtain from the court an appointment for a hearing on the matter. 2010, c. 16, Sched. 4, s. 12 (1). Objection deemed abandoned if fail to meet time limit (2) If the objector fails to make an application or obtain an appointment under subsection (1) within the required time, or within such longer period as the judge may allow, the objection is deemed to have been abandoned. 2010, c. 16, Sched. 4, s. 12 (2). Service of appointment and notice (3) The objector shall serve a copy of the appointment and a notice in writing, in a form approved by the Attorney General, that sets out his or her objection and the facts and reasons on which the objector intends to rely, on, (a) the debtor, unless the debtor is the objector; and (b) on each credi…

• 12.
• 13Effect of decisions

  13 The decision of a judge of the Superior Court of Justice or of the Divisional Court on an appeal referred to in section 16 binds the debtor and all the debtor’s creditors, unless it appears that the decision was obtained by fraud or collusion. 2010, c. 16, Sched. 4, s. 13. Rights of subsequent execution creditors if first execution followed by a mortgage

• 13.
• 14Application

  14 (1) This section applies if, (a) one or more executions are filed with the sheriff; and (b) after at least one execution is filed with the sheriff, the debtor executes a mortgage or other charge that is otherwise valid on all or part of his or her property. 2010, c. 16, Sched. 4, s. 14 (1). Distribution (2) The following rules apply: 1. The sheriff may sell the encumbered property under an execution filed before the mortgage or charge was given, as if the mortgage or charge had not been given. 2. The sheriff shall prepare a scheme of distribution of the proceeds of sale of the encumbered property that proposes the distribution of the amount of the proceeds, before taking into consideration the amount owing under the mortgage or charge, i. firstly among any creditors who have priority under section 2, and ii. secondly among those creditors whose executions were filed with the sheriff b…

• 15Deposit of money in bank

  15 A sheriff shall deposit money that comes into his or her hands in a bank designated for that purpose by the Deputy Attorney General or the person designated by the Deputy Attorney General under subsection 73 (2) of the Courts of Justice Act. 2020, c. 11, Sched. 6, s. 1. Section Amendments with date in force (d/m/y) 2020, c. 11, Sched. 6, s. 1 - 08/07/2020

• 15.
• 16Appeal

  16 If a party to an objection or any matter on which a judge has rendered or made a final judgment or order is dissatisfied with the judgment or order and it is with respect to a question involving a sum greater than the appeal limit for a final order of the Small Claims Court, the party may appeal from judgment or order to the Divisional Court in accordance with the rules of that court. 2010, c. 16, Sched. 4, s. 16.

• 16.
• 17Powers of judge

  17 Any proceeding erroneously taken under this Act may be set aside by a judge, with or without costs as he or she thinks fit. 2010, c. 16, Sched. 4, s. 17.

• 17.
• 18Evidence on proceeding before judge

  18 On any proceeding before the judge, the evidence may be taken orally or by affidavit as the judge may direct. 2010, c. 16, Sched. 4, s. 18.

• 18.
• 19Application of Courts of Justice Act

  19 Except where inconsistent with this Act, the Courts of Justice Act and the rules of court apply to any proceeding under this Act. 2010, c. 16, Sched. 4, s. 19.

• 19.
• 20Forms

  20 The Attorney General may approve the use of forms for any purpose of this Act, specify the procedure for the use of the forms and require their use for any purpose of this Act. 2010, c. 16, Sched. 4, s. 20.

• 20.
• 21Transitional, certificate of proof of claim

  21 The following rules apply with respect to a certificate issued to a claimant under subsection 9 (1) of the Creditors Relief Act that is still in force on the day that Act is repealed: 1. The certificate continues to remain in force for three years from the date of the certificate and may from time to time be renewed in the same manner as an execution. 2. On delivery of the certificate to the sheriff either before or after this Act comes into force, the claimant is deemed to be an execution creditor for the purposes of this Act whose execution is deemed to have been filed with the sheriff on the day the certificate is delivered to the sheriff, subject to the debt to which the certificate relates being disputed subsequently by another creditor under proceedings referred to in section 5. 3. For the purpose of interpleader proceedings, the certificate is deemed to be an execution. 2010, c…

• 21.
• 22.-29

  22.-29 Omitted (amends, repeals or revokes other legislation). 2010, c. 16, Sched. 4, ss. 22-29.

• 30

  30 Omitted (provides for coming into force of provisions of this Act). 2010, c. 16, Sched. 4, s. 30.

• 31

  31 Omitted (enacts short title of this Act). 2010, c. 16, Sched. 4, s. 31. ______________