Debt Collection Lawyer Alberta

practice areas Debt Collection Lawyer Alberta

When a company has considerable outstanding debts, it is inconvenient and can affect day-to-day operations. Debt collection is a usually time-consuming and difficult task that requires determination and skill. A debt collection lawyer with experience in debt recovery can help.

A debt collection lawyer can promptly analyze a debtor’s ability to pay, identify hidden assets, and enforce loan repayment.

Taurus Law’s debt collection lawyers have extensive experience assisting creditors seeking payment. Our lawyers take pleasure in being able to offer the skills and competence of a large firm. However, we still maintain the accessibility and attention to detail that our clients value.

Not every debt collection action is worth undertaking. Our lawyers will perform the appropriate searches to analyze a debtor’s financial status and advise a client on whether litigation is likely to result in a beneficial outcome.

Understanding Debt Collection Lawyers

Our litigators at Taurus Law have extensive skills in representing parties in debt collection matters. We can assist businesses or individual creditors in a variety of debt collection actions, including:

• Accounts receivables
• Multi-jurisdictional debt matters
• Enforcing contractual debtor’s
• Return of valuable assets
• Judgment debtor examination
• Realizing a lender’s security
• Debt recovery matters related to the sale of goods
• Enforcing court orders

When a creditor is concerned that a debtor might relocate or dispose of their assets, creditors can obtain a freezing order. A freezing order is also referred to as a Mareva injunction. To receive this remedy, the complainant must demonstrate that there is a high possibility of prevailing against the opposing party in court. The potential to transfer assets electronically demands that this order be obtained quickly and carefully.

Our debt collection lawyers at Taurus Law will give strong representation in any debt collection lawsuit case in Alberta. We will work alongside your collection agency to obtain the best possible outcome. The trial lawyers at Taurus Law will strive to achieve a favourable outcome for creditors seeking to implement judgments and recover what is owed to them.

Understanding Regulatory Matters in Debt Collection

Managing debt collection is critical to the profitability of any organization. It is crucial to understand debt collection laws and implement a system that works. In Alberta, several factors place severe constraints on your ability to recover a debt. A professional litigator is required to obtain results and initiate the process of filing or resolving a debt collection action in court.

Our debt collection lawyers in Edmonton have years of experience in this field, which can help you receive what you’re owed. One of the first steps in filing a debt collection claim against a borrower is to determine whether you have the legal right to do so.

When you file a lawsuit against someone, you expect that if you win in court, you will receive the sum of money payable by the debtor. However, when deciding whether to file an action against a debtor, several factors must be considered.

Whether the Borrower is Judgement Proof

The first factor to consider is if the borrower has a way to repay you the sum they owe. Let’s say the borrower is not employed and has no money in their bank account or assets like a vehicle or real estate. In this case, you might be better off not devoting additional resources and time to the lawsuit.

The term “judgment proof” refers to a debtor who is financially insolvent and lacks any money or property to satisfy a judgment. Even if this is not a defence to a debt collection claim, it makes enforcing a judgment extremely challenging.

The Limitations Act

The Limitations Act in Alberta sets a two-year deadline for suing for a debt. Perhaps it has been more than two years since the time you last received payment on an outstanding debt. In this case, you may be prohibited from pursuing legal action against the borrower for the unpaid amount.

Legal Options for Debt Collection Matters

Whether enforcing accounts payable, collecting money owed under a contract, or recovering on a security, timing is crucial. It is critical to act swiftly to keep the debtor from selling off assets that could be utilized to pay their outstanding debt. Some of the typical remedies we pursue on behalf of clients to protect their interests in debt collection actions include:

Injunctive Relief

We might be concerned that a debtor could dispose of or transfer liquid assets in order to avoid a judgment. We will request an injunction (known as a Mareva injunction). It freezes the debtor’s assets to stop them from disposing of any personal property until the matter is resolved by the court.

Norwich Order

In circumstances when the debtor’s assets are not known, we may request a Norwich Order. The order allows the creditor to obtain details from third parties, like a bank, about the debtor’s money and assets.

Certificate of Pending Litigation

Perhaps the borrower owns real property, but there is concern that they might try to dispose of it or transfer the title prior to the court making a decision on the case. We can place a Certificate of Pending Litigation (CPL) on the property title. This prevents the debtor from moving the property until the CPL is lifted, awaiting a final court order.

Enforcing Judgments: Strategies and Tactics

Receiving a judgment in Alberta courts is usually just the beginning of the proceedings. The process of enforcing the judgment can be frustrating, challenging and tedious.

An Examination in Aid of Execution

An examination in aid of execution is commonly performed as a remedy for a lender who has acquired a judgment against a borrower. The borrower provides documentation outlining their money, assets, and debts. At this point, the creditor has the opportunity to interview the debtor under oath to determine the debtor’s ability to honour the judgment.

Debtors are interviewed in front of court reporters. The debtor will likely be reluctant to comply. You need a debt collection lawyer with knowledge in this field to pose the right questions to the debtor and obtain the best outcome.

Writ of Seizure and Sale of Land

Another way to enforce your judgment is to have a writ of seizure and sale of land granted by the court. It can be filed against a borrower in any district or county where the borrower owns property.

It encumbers not only any land currently owned by the borrower but also any land that the debtor acquires in the future. A writ lodged in the jurisdiction where the debtor holds land will be effective in the long term. This makes it impossible for the borrower to sell or remortgage the home without first paying off the outstanding debts.

Wage Garnishment Order

Another efficient way to enforce a judgment against the borrower is to issue and file a notice of wage garnishment with the court. The garnishment notice will include the garnishee’s details, address, and amount owed.

The garnishee could be an employer, a bank, or a person who owes the borrower money. The procedure involves withholding money from the debtor’s wage through their paycheck. The employer is legally required to perform their duty as the garnishee and remit the wage garnishment to the court till the debt is completely paid off. If the employer fails to cooperate, a creditor has the option to sue the employer for the entire sum of the debtor’s loan.

Contact Our Debt Recovery Lawyer Today

Do you need reliable legal services to pursue an unpaid debt? Our experienced lawyers at Taurus Law can help you collect the debt owing. All our legal professionals understand the Canadian collection laws, including how to enforce judgments. Our impeccable legal services make us stand out from other law firms in Alberta.