A Support Deduction Notice (SDN) is a legal document that attaches funds payable to a debtor from a variety of sources. When an SDN “attaches” funds, this means that the funds are captured and paid to the Maintenance Enforcement Program (MEP) to satisfy maintenance obligations, instead of being paid to the debtor. SDNs used to be referred to as “garnishees” or “notices of continuing attachment”
An SDN is one of the payment options available to MEP debtors. To ensure that court-ordered support is received in full and on time, MEP encourages debtors to make their payments through an SDN with their employer or other person who makes regular payments to the debtor. To take advantage of this convenient payment option, debtors complete and return the Debtor Payment Form found on MEP’s website.
For more information regarding SDNs with an employer, please see MEP’s information sheet Wage Support Deduction Notices, catalogue #99024.
MEP may also issue an SDN as a collection tool when a debtor is not voluntarily paying maintenance. A non-wage SDN may be issued to a variety of financial sources, including:
- bank accounts
- money owed to a debtor for services (such as sales commissions, rental fees, payment for casual labour and contract fees) or for repayment of a personal debt
- term deposits, retirement savings plans (RSPs), guaranteed income certificates (GICs) upon their maturity or redemption, and locked-in retirement savings vehicles
- mutual funds held outside of RSPs
- funds held in trust by a lawyer or other party on behalf of a debtor, such as inheritances, lawsuit settlements, real estate funds, matrimonial property or bankruptcy estates
- certain insurance benefits, such as medical leave benefits
- government agencies
Sources receiving SDN documents will not be able to tell if an SDN was chosen by the debtor as a payment option or if it has been issued by MEP as a collection tool.
Non-wage SDNs typically attach the entire amount of arrears owing on the maintenance file. The amount owing is specified in a fax to the source and the SDN becomes effective immediately. Sources have 15 days to either forward the money to MEP or notify MEP that there are no funds available. Failure to send money that would otherwise be payable to the debtor can cause the source to be legally liable for the entire amount attached by the SDN.
All non-wage SDNs are in effect for twelve years. An SDN may be terminated prior to its expiry if the debtor makes an acceptable payment arrangement with MEP or when the account is up-to-date. If the SDN is voluntary, the debtor may terminate it after alternate payment arrangements are made. Debtors should keep in mind that MEP requires up to 14 days to initiate the termination of an SDN.
Support Deduction Notices on Joint Accounts
If MEP issues an SDN to a debtor’s bank account that is held with one or more other persons (joint account), then the amount that the SDN typically can attach is proportional to the number of individuals holding that account. For example, if the debtor has a joint bank account with two other people, MEP can attach one-third of the total amount held in the account.
If the debtor or joint account holder has information that may affect the amount of money attached under the SDN, they have 21 days from the date the SDN is issued to contact MEP with this information. Any funds received from the joint account will be held by MEP until the 21-day period expires. Any funds received after the 21-day period will not be held and will be paid out immediately upon arrival at MEP.