In 1995 I took out a personal loan with a bank which was actually money for a small business I was running (not smart I know now). The company ceased operations that year and believe me I was not sitting on a pile of money. In other words, I had no way to repay the debt. In 1999 the bank got a judgement against me but failed to act until I recently received a brief from their new lawyers seeking a new judgement. In the brief they acknowledge that more then six years have passed.

So my question. Do they now have a right to seek another judgement and can they garnish my wages? I should say is the court likely to grant such a motion?

Quote:

---

Originally Posted by doIowe

In 1995 I took out a personal loan with a bank which was actually money for a small business I was running (not smart I know now). The company ceased operations that year and believe me I was not sitting on a pile of money. In other words, I had no way to repay the debt. In 1999 the bank got a judgement against me but failed to act until I recently received a brief from their new lawyers seeking a new judgement. In the brief they acknowledge that more then six years have passed.

So my question. Do they now have a right to seek another judgement and can they garnish my wages? I should say is the court likely to grant such a motion?

---

Are they renewing the first Judgment or getting a new Judgment?

If it's a new Judgment I would question why and also, yes, it appears that Statute has passed.

I believe it is a new motion or judgement being sought. In one part of the brief it notes that it has been more then six years since the last judgement specifically saying, "more than six years have elapsed from the date of the judgement and the Plaintiff seeks leave to issue and file a Writ of Seizure and Sale". In another part of the brief, it specifically states, " Through inadvertence, the Writ of Seizure and Sale was not renewed prior to it's expiry in 2005".

Quote:

---

Originally Posted by doIowe

I believe it is a new motion or judgement being sought. In one part of the brief it notes that it has been more then six years since the last judgement specifically saying, "more than six years have elapsed from the date of the judgement and the Plaintiff seeks leave to issue and file a Writ of Seizure and Sale". In another part of the brief, it specifically states, " Through inadvertence, the Writ of Seizure and Sale was not renewed prior to it's expiry in 2005".

---

It sounds to me like they are applying for permission to collect on a judgment (thus, seizure and sale) on the grounds of some sort of inadvertence or mistake which caused the Writ not to be executed in 2005.

I would think - and I am in the US - that an Attorney (or perhaps you) could argue that this is outside the Statute of Limitations and the Statute is there for a reason which the creditor is trying to circumvent, error or no error.

It certainly does sound like someone slipped up and let the judgement expire and they are trying to get around that. You need to research laws that would allow them to do so. Otherwise, you request a hearing. Go to court and point out that the judgement expired in 2005 and was not renewed.

I am in the process of hiring a lawyer to deal with this matter. I believe that their problem collecting was that I had a low paying job through those years. Now suddenly they have discovered that my income has more then doubled and I think they are rubbing their hands together. Basically, you can't get blood from a stone or they couldn't in 2005. Would the change in my economic status be a reason for them to now seek a new judgement? By the way... thank you for you answers. They are much appreciated.

Quote:

---

Originally Posted by doIowe

I am in the process of hiring a lawyer to deal with this matter. I believe that their problem collecting was that I had a low paying job through those years. Now suddenly they have discovered that my income has more then doubled and I think they are rubbing their hands together. Basically, you can't get blood from a stone or they couldn't in 2005. Would the change in my economic status be a reason for them to now seek a new judgement? By the way......thank you for you answers. They are much appreciated.

---

Anything is possible but you'll probably never know. I don't recall how big the Judgment is but it's unusual in the US for a creditor to admit a mistake and go about trying to get something reinstated. Sounds like somebody made a mistake, discovered on audit.

Thanks for your help Judy. I'll let you know what happens. Stay tuned.

No, a change in circumstance does not provide grounds for reinstatng the judgement.

After seeing a lawyer he advises that I should make a deal with them. They are only seeking to renew the Writ of Seizure and Sale. The lawyer told me the original judgement can be renewed continually at 10 year intervals so it never goes away. Since the bank did exercise their legal rights originally he believes a judge would renew the Writ since I have no way of contesting that I do owe the money.

I had hoped to avoid this with attempting to save for retirement and two kids coming to post secondary age soon, however, sometimes in life you have to pay for mistakes and I will pay for mine. Thanks again for your input here. Very nice of you all.

Quote:

---

Originally Posted by doIowe

After seeing a lawyer he advises that I should make a deal with them. They are only seeking to renew the Writ of Seizure and Sale. The lawyer told me the original judgement can be renewed continually at 10 year intervals so it never goes away. Since the bank did exercise their legal rights originally he believes a judge would renew the Writ since I have no way of contesting that I do owe the money.

I had hoped to avoid this with attempting to save for retirement and two kids coming to post secondary age soon, however, sometimes in life you have to pay for mistakes and I will pay for mine. Thanks again for your input here. Very nice of you all.

---

Thanks for the update - I'm amazed that a Judgment can be renewed forever. I'm used to one term and then one renewal and then it's over.

Good luck!

So a judgement holder can allow the judgement to lapse and then go back and reinstate it? I would check with another lawyer.

Quote:

---

Originally Posted by ScottGem

So a judgement holder can allow the judgement to lapse and then go back and reinstate it? I would check with another lawyer.

---

I'm reading this as the renewal of the Judgment was either done - or automatically done - but that the Writ somehow wasn't renewed.

Or something.

I'm still chewing on a Judgment never expiring.

I thought a judgment could only last for a maximum of 20 years in Ontario.

Quote:

---

Originally Posted by CaptainForest

I thought a judgment could only last for a maximum of 20 years in Ontario.

---

So did I - but when I went to research it I found out that US Judgments in "most cases" (some exceptions) are enforceable in Canada. Never heard that before and got engrossed in reading the Law, never got to the "how long does a Judgment last" question.

Perhaps the OP is confused - I don't really know. I have difficulty with the un-ending Judgment idea.

The judgement has a term but can be renewed continually. I was surprised since we treat actual criminals better then that, however, the way he explained it made sense to me. The Writ of Seizure and Sale is what expired not the judgement. Since the bank had exercised their right to obtain a judgement but only allowed the Writ to expire he felt it unlikely a judge would not renew the Writ since I have no defense for not paying the loan.

While that makes sense, it just surprises me that those would be considered separately. But it may be an issue for Canada jurisprudence.