Seizing Assets in Ontario CourtsGeneral Information A writ of seizure and sale is the usual method of enforcing a judgment or court order in Ontario. Generally speaking, a writ is a document that is issued by a court to an Ontario sheriff. Once filed with a sheriff’s office, the writ allows a judgment creditor to direct a sheriff to seize and sell real estate and personal property owned by the debtor in order to satisfy the creditor’s judgment. Any proceeds of a sale that exceed the sum of (a) monies owed to creditors, including interest, and (b) the costs of enforcing the writ, are returned to the debtor. This writ, however, is only effective to the extent that a debtor actually has assets that can be sold to satisfy this judgment. There is no minimum amount that a debtor must owe in order for a creditor to obtain a writ. The lawyer for the judgment creditor obtains this writ by filing a “requisition” for the writ with the court’s registrar, along with proof of the amount owing. A requisition is, essentially, a request to the court for a writ, addressed to a sheriff’s office in a region where the debtor holds property. The writ tells the sheriff of the amount of money that is owed to the creditor, as well as any payments that have been received since the judgment was issued. Ontario does not have a “province-wide” registry for filing writs. Instead, Ontario is divided into districts, each with a separate sheriff’s office that can enforce writs only for property located in that particular district. The practical consequence is that a creditor will have to determine the location(s) in Ontario of debtor’s property, and file a writ with the sheriff’s office for each district where property is located. A creditor can file a writ of seizure and sale within six years of obtaining an order or judgment. A writ must be renewed every six years after the date of filing or it will expire. Another important aspect of filing a writ is that a sheriff will not automatically enforce the writ or ‘keep tabs’ on the debtor’s assets for the creditor. Even though a writ is filed with the sheriff’s office, the sheriff will not take steps to enforce the writ until directed to do so by the creditor, and will require specific instructions and information from the creditor with respect to any property that is available for seizure. The sheriff also charges the creditor a fee for seizing the debtor’s assets and selling them by way of a public sale and may require a “bond of indemnity” from the creditor which makes a creditor liable for any wrongful seizure of such property. Although the creditor can add the expenses of enforcing a judgment to the amounts owing by a debtor, it is up to a creditor to ensure that the debtor has assets that can properly be seized and sold so as to make the costs of enforcement worthwhile. Additionally, the proceeds of a sale do not go directly to the creditor who requested that the writ is enforced, but instead are held by the sheriff for 30 days and then distributed equally among the debtor’s creditors. Seizure and Sale of Personal Property The definition of “property” that can be sold under a writ of seizure and sale is quite broad. In addition to seizing tangible land and goods, the sheriff can seize: •Money, cheques, bills of exchange, promissory notes, bonds, mortgages or other securities, book debts and “choses in action”; •Money paid into court pending judgment; •The mortgagee’s interest under a mortgage; •Rights under letters patent of invention; •Equitable interests, including an equity of redemption; •Shares in a private company; and, •Shares or dividends in a chartered bank or corporation having transferable shares.