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A Judgment Was Entered Against Me in Canada — What Happens Now?
A court judgment in Canada means a creditor can garnish your wages, seize your bank account, and register a lien on your home without further court appearances. Here is what to do immediately.
Key Takeaways
- A court judgment is a court order saying you owe the amount claimed — the creditor can now garnish wages, freeze bank accounts, and register liens without any additional court hearing
- A judgment creditor in Ontario can garnish up to 20% of your net wages under the Wages Act; in Alberta up to 50% of wages above a minimum exemption under the Civil Enforcement Act
- Filing a consumer proposal or bankruptcy under the Bankruptcy and Insolvency Act triggers a stay of proceedings that stops enforcement of the judgment going forward — though money already collected before filing is not returned
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Get Free Assessment →Last updated: July 2026. Enforcement limits and procedures are set by provincial legislation and vary by province. Figures cited are for Ontario and Alberta — confirm your province’s specific rules with a Licensed Insolvency Trustee.
A civil court judgment means a judge or registrar has formally ruled that you owe the amount the creditor claimed. In Canada, once a judgment is entered, the creditor becomes a judgment creditor with legal enforcement powers that do not require any further court hearings. The judgment is the authorization. They can begin enforcement the same day it is issued.
Quick answer: A judgment in Canada authorizes immediate wage garnishment, bank account seizure, and property liens with no further court involvement. Ontario allows garnishment of up to 20% of net wages. Alberta allows up to 50% above a minimum exemption. A consumer proposal filed under the BIA stops enforcement of the judgment from the filing date forward — not retroactively, but immediately going forward.
What a Judgment Creditor Can Do Right Now
The enforcement tools available to a judgment creditor in Canada differ significantly from what a creditor can do before judgment. Before judgment, a creditor can call, write, and threaten legal action — governed by provincial collection acts. After judgment, the creditor has court authorization.
| Enforcement tool | How it is activated | Effect |
|---|---|---|
| Wage garnishment | Writ served on your employer’s payroll department | Employer deducts and remits percentage of each paycheque |
| Bank account seizure | Writ of Seizure and Sale served on your bank | Bank freezes funds and remits to judgment creditor |
| Certificate of Judgment (property lien) | Registered at land registry against real property | Blocks sale or refinancing until judgment paid |
| Garnishment of accounts receivable | Writ served on your clients (for self-employed) | Clients pay judgment creditor instead of you |
| Examination in aid of execution | Court-compelled appearance to disclose assets and income | Used to locate garnishable assets |
None of these require a further court hearing after the judgment exists. The judgment creditor files the appropriate writ or registration with the court administration, and the enforcement proceeds.
Garnishment Limits by Province
Provincial legislation caps how much of your wages a creditor can garnish. These limits apply per pay period.
| Province | Garnishment limit | Exempt minimum | Governing legislation |
|---|---|---|---|
| Ontario | 20% of net wages | None (% applied to total net) | Wages Act, R.S.O. 1990 |
| Alberta | 50% of net above exemption | $800/month exempt (approx.) | Civil Enforcement Act, RSA 2000 |
| British Columbia | Up to 30% of net | $100/week exempt | Court Jurisdiction and Proceedings Transfer Act |
| Manitoba | Variable | Exemption based on needs | Garnishment Act |
| Saskatchewan | 30% of net | Varies by dependants | Attachment of Debts Act |
| Nova Scotia | Discretionary | Varies | Judicature Act |
Multiple writs from multiple creditors do not stack beyond the provincial cap. If two creditors each have a garnishment writ, they share the garnishable portion — it does not double.
Can You Still Stop the Judgment?
If the judgment was entered as a default judgment — meaning you did not file a defence and the court entered it automatically — there is a legal process to challenge it.
In Ontario: Rule 19.08 of the Rules of Civil Procedure allows you to bring a motion to set aside a default judgment if you can show:
- You were not properly served (the claim did not reach you)
- You have a meritorious defence to the claim
- You brought the motion promptly after learning of the judgment
Courts are generally receptive to setting aside default judgments when proper service is disputed and the motion is made quickly. If weeks have passed and garnishment is already occurring, the urgency is higher.
Practical reality: Setting aside a default judgment requires a lawyer or paralegal and a court appearance. If the debt is legitimate and you cannot pay it, setting aside the judgment simply restarts the clock on a process that will likely reach the same outcome. A consumer proposal or bankruptcy may be more efficient.
What Filing a Consumer Proposal Does to a Judgment
A consumer proposal filed under Part III of the Bankruptcy and Insolvency Act (BIA) triggers an automatic stay of proceedings under Section 69.3. This stay applies to civil judgments. From the moment the Licensed Insolvency Trustee (LIT) files the proposal with the Office of the Superintendent of Bankruptcy (OSB):
- Wage garnishment stops on the next pay cycle (the writ is stayed)
- Bank account enforcement stops (the bank receives notice of the stay)
- New enforcement writs cannot be filed against you
- The judgment creditor cannot take further steps to collect
What the stay does not do: It does not return money already collected under the garnishment before the filing date. If $1,200 was garnished from your wages in the 3 weeks before your LIT filed, that money is not returned. The stay applies prospectively — going forward from filing.
What happens to the judgment itself: The judgment debt becomes an unsecured claim in the consumer proposal. If the proposal is accepted and completed, the judgment debt is discharged at the end of the proposal period along with all other included unsecured debts.
The R9 rating and the judgment record on your Equifax Canada and TransUnion Canada credit bureau reports remain for 6 years from the date they were entered — the consumer proposal does not remove them early. However, the proposal adds an R7 notation that indicates you are in a formal repayment arrangement, which lenders generally view more favorably than an ongoing enforcement situation.
The Judgment Enforcement Timeline You Should Know
| Timeframe | What the judgment creditor is likely doing |
|---|---|
| Day 1–7 | Filing writs with the court, preparing garnishment documents |
| Day 7–14 | Serving writs on your employer or bank |
| Day 14–30 | First garnished paycheque or bank account freeze |
| Ongoing | Quarterly renewals of garnishment writs (Ontario) |
| Year 1–2 | Possible examination in aid of execution to locate assets |
| Year 10–20 | Judgment renewal — it does not expire |
This is not a slow process. Once a creditor decides to enforce, the first garnished paycheque can arrive within 2–3 weeks of the judgment being issued. In most provinces there is no required notice to you before the writ is served on your employer.
Getting Ahead of Enforcement
If you know a judgment was entered against you — whether from a letter, a court notice, or a call from your employer — the window to file before the first garnishment runs is short. A Licensed Insolvency Trustee consultation is the fastest way to confirm whether a consumer proposal or bankruptcy is appropriate, what the stay of proceedings covers in your specific situation, and what timeline you are working with.
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Get help nowLITs are federally licensed and regulated by the OSB. The initial consultation is free. The stay of proceedings, once filed, is legally immediate.
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Nicole Beaumont
Mortgage & Insolvency Writer
Nicole Beaumont covers mortgage distress, HELOC strategy, and the intersection of secured debt with insolvency options. She writes for homeowners navigating renewal shock, power of sale, and equity-based debt solutions.
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