The mission of the Maintenance Enforcement Program (MEP) is to help families achieve compliance with maintenance orders. When there are arrears on a file, reasonable arrangements must be made to bring the account up to date. To find out what is reasonable, MEP requires debtors in arrears to make full disclosure of their finances by completing a Statement of Finances. This is a document used by a debtor to list, under oath, the debtor’s employment, income, assets, expenses and liabilities: see MEP’s info sheet entitled Statement of Finances (catalogue #99028).

Sometimes, however, the Statement of Finances might not be returned or may not contain enough information. MEP may also need to verify financial details listed in the statement. In these cases, the MEP may schedule a financial examination. Through the examination process, MEP will attempt to come to an agreement with the debtor regarding an appropriate payment arrangement. To help the debtor in complying with the agreement made, MEP staff might refer him or her to resources that could be of assistance.

How are financial examination hearings scheduled?
Once MEP schedules a hearing, the debtor will be personally served with a notice (called a summons) advising of the date, time and place of the financial examination. The summons is an official court document that requires the debtor to appear at the address written on the document.

What if the debtor does not appear as required by the summons?
Failing to appear for a financial examination hearing has serious consequences. This failure to appear can be referred to the court for an order compelling the debtor to attend. If the debtor does not appear as ordered, a warrant for the debtor’s arrest may be issued, which can result in imprisonment.

What happens at a financial examination hearing?
The financial examination process takes place in two stages. The first stage is a preliminary examination in which the defaulting debtor is required to produce records or other material respecting his or her employment, income, assets and financial circumstances. An Examination Officer will examine this information, question the debtor and then try to work out a payment arrangement. If this preliminary examination does not result in a payment arrangement, or if further disclosure or examination is required, the process will move to the second stage, a financial examination hearing.

In the financial examination hearing, a Senior Examination Officer will review the evidence provided and will try to determine why the debtor has not paid the arrears on the account. A Hearing Officer is present to ensure the examination is conducted in an administratively fair manner. The Hearing Officer may also ask questions of the debtor and examination officer. At the end of the hearing, the hearing officer will decide what actions should be taken. This decision is based on the financial evidence presented, input from the debtor and the recommendations of the Senior Examination Officer. The Hearing Officer may:

• approve payment arrangements made at the hearing,
• make a demand for payment based on the officer’s assessment of the debtor’s financial situation,
• adjourn the matter for further financial examination, or
• refer the matter to court, where MEP will seek a court order requiring additional financial information.

What if payment arrangements are not successfully made through the financial examination process?
The purpose of the financial examination hearing process is to resolve accounts in arrears by helping the debtor reach a payment arrangement that meets the ongoing support amount plus a contribution towards the arrears. If the financial examination is unsuccessful in doing this, and the examination determined that the debtor has the ability to pay, the file may be reviewed for a default hearing where the debtor is required to appear in court. For more information about this process, see MEP’s info sheet entitled Default Hearings (catalogue #99028).

How can debtors avoid being required to attend financial examination hearings?
MEP wishes to resolve all files with appropriate payment arrangements. To ensure that financial examinations are not scheduled on their account, debtors are encouraged to make all payments to MEP as required by their maintenance order. Where this is not possible, the debtor should keep in contact with MEP, make full financial disclosure as requested and follow through with all payment arrangements made. Even after being summoned for a financial examination hearing, a debtor may be able to cancel the hearing by immediately making a suitable payment arrangement or paying the arrears in full. By working cooperatively with MEP staff, debtors can also avoid paying deterrent charges, interest and other collection actions.

Can the creditor attend a financial examination hearing?
MEP is bound by privacy laws that prevent the creditor from being present at a preliminary examination or a financial examination hearing. However, the creditor will be advised of the outcome of the hearing.