If a maintenance payment is not made when due under a court order or agreement, the amount of unpaid maintenance is referred to as arrears. The Maintenance Enforcement Program (MEP) expects arrears on accounts to be paid in full. If circumstances do not allow debtors to immediately pay all arrears, they may make a payment arrangement with MEP. The goal of the arrangement is to pay off all arrears within a reasonable amount of time. This means debtors will be asked to pay the ongoing maintenance amount stated in their court order, plus an amount toward the arrears each month. If you are not sure you have a payment arrangement in place, or your payment arrangement is over one year old, please contact MEP to confirm.

Benefits of a Payment Arrangement
A payment arrangement is extremely beneficial for debtors in arrears. Complying with a payment arrangement allows debtors to:

• Provide support for their family;
• Avoid further enforcement action;
• Have some enforcement actions removed;
• Work toward paying off their maintenance arrears;
• Bring themselves into good payor status; and
• Avoid the $25 per month default penalty normally charged to debtors with arrears. Making payments on or before the due date of the payment arrangement will ensure that no default penalties are applied.

Voluntary Payment Arrangements
To make a payment arrangement, debtors need to provide information about their finances. Financial disclosure is provided through a sworn statement, called a Statement of Finances, setting out the debtor’s employment, expenses, income and assets. MEP reviews each case individually and staff will set up a payment arrangement based on the debtor’s particular circumstances while paying off arrears as quickly as possible. Payments normally satisfy the ongoing support obligation due, plus contribute toward arrears. Debtors’ payment arrangements will be reviewed from time to time to ensure arrangements are still reasonable.

The minimum payment amount is set using the debtor’s gross income and the child support guidelines as a guide:

• Debtors will be asked to pay 20% of their gross income if their court order requires them to support 1 or 2 children.
• If their order is for 3 or more children, the “next child amount” may be used. For example, if the order grants maintenance for four children, staff will look at the payment required by the child support guidelines for five children, and this will be the amount the debtor is asked to pay.

Securing Actions
MEP staff may place certain actions on files with arrears, even when a payment arrangement is in place. These actions, which provide security for the payment of arrears by attaching to sources of money, are federal support deduction notices and registrations at the Personal Property Registry and Land Titles Office. Debtors may receive written notice that some or all of these actions have been placed.

In general, money MEP collects from securing actions does not count as payments made by the debtor under the payment arrangement. This includes money collected from income tax refunds, GST rebates and federal social benefits (like Canada Pension Plan, Old Age Security and federal training allowances). Those funds will instead be applied to reduce the maintenance arrears. Debtors who receive other funds not known to MEP staff in making the payment arrangement (e.g. inheritances or insurance settlements) should also pay this money toward the arrears.

If debtors become eligible to receive any of the federal social benefits mentioned above or are unable to remit the required payment arrangement amount in the future, they are advised to phone MEP immediately. In some cases, MEP can assist debtors by changing the payment arrangement. Debtors may also need to return to court to vary the ongoing maintenance amount or arrears. The current court order remains enforceable until a new court order is received by MEP.

Removal of Collection Action
Once a satisfactory payment arrangement is made, certain enforcement actions may be removed from the file within 14 days. A wage support deduction notice will be adjusted to the payment arrangement amount and a non-wage support deduction notice may be terminated prior to its twelve-year expiry date. MEP may also remove federal licence denials so debtors can again access passports and aviation and marine licences.

Complying with a payment arrangement means that a driver’s licence cancellation will be removed. A limited restriction of motor vehicle services can be placed instead to allow the debtor to renew a driver’s licence or registration for a period of only one year. After MEP removes a licence cancellation, the driver must personally visit a registry office to obtain a new licence.