Question:
I have a landlord client that has had a bad tenant (who has moved out now), didn’t pay rent, damaged the unit. My client has already gone through the LTB process and received an order against this tenant; however, this tenant still refuses to pay. Is there a way to collect?
Answer:
They will need to convert the LTB Order to a Small Claims Court Judgment or Superior Court Judgment depending on the amount, being either over or under $35,000. They will want to retain a lawyer to do this. Once they obtain that Judgment, they can use it to take the necessary steps for recovery. They’ll want to obtain legal advice first and ensure the debtors aren’t Judgment proof or they’re just wasting more time
The Judgment needs to be converted into an Order for Execution. That means that the person’s assets can be seized. It lasts for six years. Then, it can renewed for $100.00 which is very worthwhile.
Judgments also have a post-judgment interest which will be significant over a longer term.
If they are Judgment Proof, don’t give up. Wait for 5 years and keep checking in every 5 years thereafter. Eventually, you will be paid unless they actually went bankrupt.
You could get a wage garnishment if the person is working or you can seize their assets.
Brian Madigan LL.B., Broker