What is a default hearing?

A default hearing is a court process held before a master of the Court of Queen’s Bench. A master takes the place of a judge and is able to issue court orders. The Maintenance Enforcement Act allows the Maintenance Enforcement Program (MEP) to serve a summons on a defaulting debtor requiring him/her to appear before the court to:

• show the court why the maintenance order should not be enforced
• be examined under oath about the debtor’s finances
• show why the debtor should not be committed to prison for wilfully defaulting in the payment of maintenance.

What is MEP’s role in a default hearing?

• MEP may schedule a default hearing when there has been no resolution through other collection efforts and MEP believes that the debtor may have the ability to pay but has not done so.
• When a hearing date has been obtained from the court, MEP will issue a summons that tells the debtor when and where to appear in court.
• In Edmonton and Calgary, MEP’s senior collection officers meet with the debtor at the courthouse before the start of the hearing. The purpose of the meeting is to try to negotiate a reasonable payment plan so that the full hearing will not be necessary.
• MEP’s goal is to increase its collections on the creditor’s behalf. On occasion, interim (short-term) payments may be negotiated that are less than the ongoing payments actually due under the court order or agreement. This in no way changes the amount of support actually charged and due and does not stop MEP from collecting more funds if it is possible.
• Whether or not payment arrangements are accepted, MEP may ask the court to require the debtor to complete a Statement of Finances, supply income tax returns and Canada Revenue Agency Notices of Assessment, and provide other proof of income or assets.
• MEP’s lawyer represents MEP at the default hearings. If a full hearing proceeds, they and the master will ask questions of the debtor, who will be under oath.

Please note:

1. A default hearing can be the start of a lengthy court process. A full hearing often does not proceed on the first court date; preliminary negotiations may occur or the master may ask the debtor for additional information and another court date will be set. The court may also grant the debtor an adjournment where the debtor wishes to hire legal counsel, where the counsel is unavailable or where the debtor is filing a variation application (see below).
2. The scheduling of a default hearing may result in the debtor bringing a formal court application to vary the support order. MEP does not provide legal representation for creditors or debtors at variation applications.
3. A master cannot change the terms of a maintenance order at the default hearing.

Can the creditor attend a default hearing?

Default hearings are held in open court. A creditor may attend, but it is not a requirement. The creditor should be aware that matters do not always go ahead as scheduled and that the master does not normally allow a creditor to speak at the hearing.

MEP provides creditors with advance notice when a full default hearing (not just docket day appearance) is scheduled. If the creditor intends to attend the hearing, he/she should phone MEP ahead of time to ensure the matter is expected to proceed as scheduled.

How can the creditor help MEP?

Creditors, as always, can assist by supplying MEP with all the information they have about the debtor, the debtor’s income, location, employment or assets, changes regarding the status of the children or any direct payments made to the creditor. This information should be provided directly to the program in advance of any default hearing.

What happens if a debtor does not attend the default hearing?

Once the debtor is served with the summons, the debtor is legally required to attend the default hearing. If the debtor does not, a warrant can be issued by the court. Under certain types of warrants, the debtor will be taken into custody.