Collection officers at the Maintenance Enforcement Program (MEP) follow a collection progression that indicates what enforcement action is to be added at particular stages of a debtor's default on a court order. It also indicates what enforcement action may be removed if the debtor fulfills certain terms in correcting the default.
What collection action is taken or removed usually depends on whether a debtor has made a satisfactory payment arrangement. A payment arrangement may be by direct debit from the debtor's bank account or through a support deduction notice with a debtor's employer. A satisfactory payment arrangement consists of full payment of the periodic (ongoing) maintenance plus a payment toward any outstanding arrears. The amount payable toward the arrears, whether a lump sum or periodic contribution, is established according to the debtor's financial situation as determined by a sworn Statement of Finances. Failure to properly and fully complete a Statement of Finances may result in MEP's decision not to remove enforcement action, in addition to either a $200 penalty or prosecution.
To view a list of collection actions available to MEP, see Info Sheet - List of Collection Actions Available to the Maintenance Enforcement Program. The longer the default, the more collection actions may be placed. The seriousness of these actions also increases with the length of the default.
A lawyer with authorization from a debtor may negotiate a payment arrangement in the same way that a debtor can, assuming the debtor has completed a Statement of Finances. For more information on how to obtain your client's account information or discuss his or her file see Lawyer's Guide - How do I obtain my client's MEP account information?
Where payment arrangements have been made, MEP staff may require that a lump sum payment and/or several months of periodic payments clear the bank before any collection action is removed.
Writs at the Personal Property Registry and registrations at Land Titles
These actions are considered "securing" actions. Although the Maintenance Enforcement Act does not require a file to be in arrears before a land titles or Personal Property Registry writ can be placed, staff generally do not place these actions until a file has arrears owing. Once these actions are placed, they almost always remain for the life of the file, even after all arrears are eliminated. If, however, there is an important reason to remove the writ or land titles registration, you or your client should contact MEP to explain the situation, being sure to indicate any urgency in the request. You should be aware that full payment of the arrears is usually required before the writ or land titles registration may be removed.
Federal support deduction notices
A federal support deduction notice may be placed if maintenance arrears are owing, assuming the debtor's social insurance number is known. Once accepted by the federal government, it lasts for five years unless terminated earlier by MEP. MEP usually keeps a federal support deduction notice in place for the full five years if there are arrears owing on the file. Keeping the support deduction notice in place can save the debtor administrative fees, as the federal government charges a fee for each support deduction notice issued. If there are no arrears owing on the file and a satisfactory payment arrangement is in place, the federal support deduction notice may be terminated.
If there are extenuating circumstances, MEP may use its discretion to terminate the federal support deduction notice when there are arrears owing if satisfactory payments are being made by some other means. If a federal support deduction notice remains in place and collects an amount greater than the arrears owing on the file, the difference will be refunded to the debtor on request, unless the debtor has another file with arrears or there is some other reason to apply or hold the funds. If the debtor does not request a refund, the remittance may be applied to future payments.
Amounts collected by the federal support deduction notice are normally applied in their entirety to the debtor's arrears rather than his or her periodic (ongoing) payments. For example, if the debtor has made an arrangement to pay $500 per month and then $1,000 is collected by a federal support deduction notice, the $1,000 may be applied to the debtor's arrears rather then the next two ongoing payments. In this case, the debtor will still be responsible for the next two payments of $500 unless MEP determines otherwise.
Wage support deduction notice
A wage support deduction notice may be placed to collect arrears, assuming the debtor's employer is known. Once MEP places a support deduction notice, it will normally not be removed. The debtor is responsible for making up any difference between the amount of the periodic payment (or a greater amount under a payment arrangement) and the amount collected by the support deduction notice, should it not cover the full amount expected. When a wage support deduction notice is first issued, the employer is required to remit a maximum of 40% of the debtor's wages or salary according to section 13 of the Maintenance Enforcement Regulation. The support deduction notice may be adjusted to collect a lesser amount if a payment arrangement is negotiated with the debtor or his or her lawyer.
Debtors can also voluntarily have their maintenance payments made by deduction from their wages. At their request, MEP will issue a support deduction notice to the employer so that future maintenance payments are automatically deducted by the debtor. To protect debtor's privacy, a support deduction notice will not indicate whether it was issued as a collection action or by the debtor's choice as a voluntary payment method.
Non-wage support deduction notices
Non-wage support deduction notices may be issued to a bank or other non-employment source if the debtor defaults on any maintenance payment. They remain in place until the amount of the support deduction notice is paid in full, whether by a single payment or several payments. To remove a non-wage support deduction notice, the debtor must pay his or her account in full or establish a satisfactory payment arrangement.
Motor vehicle restrictions
After default, a debtor may receive notification of a motor vehicle restriction and a request to contact MEP to make payment arrangements. This means that the debtor cannot renew a vehicle registration or driver's licence, but can operate a vehicle until the current registration or driver's licence expires. The debtor will also be unable to obtain a driver's abstract or access other services provided by the Motor Vehicle Registry.
To remove a full motor vehicle restriction, a debtor must establish a satisfactory payment arrangement based on a sworn Statement of Finances. If an arrangement is made, the restriction may be reduced to a one-year motor vehicle restriction. This means that the debtor may renew a vehicle registration and driver's licence, or access other motor vehicle services, on a yearly basis. The payment arrangement will be monitored and if the debtor adheres to it for 12 months or pays down all of the arrears, all motor vehicle restrictions may be removed. If, however, the debtor defaults on the payment arrangement, another full motor vehicle restriction may be issued.
Where a debtor is subject to a motor vehicle restriction and needs a driver's abstract to obtain employment, MEP staff may alter the restriction at the debtor's request to allow him or her to obtain this abstract. Arrangements may also be made if the debtor's driver's licence has expired and he or she needs to renew it for employment purposes. To lift the motor vehicle restriction, MEP will normally require a sworn Statement of Finances and a payment arrangement in the form of a wage support deduction notice at the new place of employment.
Driver's licence cancellations
After default of at least 60 days, MEP staff may initiate a driver's licence cancellation. The debtor will first receive a letter from MEP advising that if no payment arrangement is made within 21 days, MEP will instruct the Registrar of Motor Vehicles to cancel his or her driver's licence. If the debtor fails to make a payment arrangement within 21 days, a letter from Alberta Registries may be sent to advise that the driver's licence will be cancelled on a certain date if no payment arrangement is made. On the specified date, the driver's licence may be cancelled without further notice if no payment arrangement has been made.
A driver's licence cancellation takes effect immediately and the debtor may be subject to severe penalties if caught driving without a valid licence. For a first offence, an individual may be subject to a fine of up to $2,000. If the fine is not paid, he or she will be subject to a term of imprisonment of not less than 14 days and not more than six months. For each subsequent offence committed within one year, an individual may be subject to a term of imprisonment of not less than 14 days and not more than six months.
To stop the cancellation process, the debtor must establish a satisfactory payment arrangement for the periodic amount plus a monthly payment toward the arrears, as determined by a sworn Statement of Finances. Once the driver's licence is actually cancelled, it may be reinstated after an acceptable payment arrangement is negotiated with collection staff. If a driver's licence has been cancelled and then reinstated, the debtor must go to a registry office to obtain a new licence. Depending on the terms of the payment arrangement, MEP may maintain a one-year motor vehicle restriction. This will allow collection staff to monitor the debtor's payment history and later determine whether the motor vehicle restriction should be removed altogether.
If a debtor has been issued a full motor vehicle restriction or driver's licence cancellation but requires a licence in order to work, a payment arrangement must still be established before the restriction will be removed. In addition to a sworn Statement of Finances, however, the debtor may also be asked to provide a letter from a current or potential employer, verifying that a driver's licence is a requirement of employment. Collection staff will consider this letter when determining the terms of the payment arrangement and the enforcement action that should be removed. When a debtor would like motor vehicle privileges reinstated for employment purposes, MEP will often require that a wage support deduction notice be set up with the employer.
Federal licence denials (e.g. passport restrictions)
A debtor may receive notice of a possible federal licence denial after a minimum of 90 days of default or $3,000 in arrears. If the debtor does not make a satisfactory payment arrangement toward the periodic (ongoing) amount and arrears, the federal licence denial may be completed a minimum of 40 days after the notice was issued. The federal licence denial may be removed once a satisfactory payment arrangement is in place.
Referrals to the credit bureau
MEP may report a defaulting debtor to the credit bureau. If the debtor completes a sworn Statement of Finances and complies with a payment arrangement for an appropriate period of time, such as one year, the credit rating may be adjusted.
Financial examination hearing
If a debtor's Statement of Finances does not provide enough financial information, MEP can schedule a financial examination hearing. Examination officers will review the debtor's financial documents and will attempt to make an appropriate payment arrangement with the debtor.
The debtor is served with a summons which advises of the date, time and place of the financial examination hearing. Failure to appear for a financial examination hearing has serious consequences including the issuance of a warrant.
Default assessment and default hearing
If the actions referred to above have not been successful in encouraging compliance with a maintenance order, a debtor may receive notice of a possible assessment for a default hearing. The assessment may later occur if no payment arrangement is made. If staff believe that the debtor has the ability to pay but has not done so, and that a default hearing would be appropriate in the circumstances, they may schedule a default hearing. In such cases, MEP will serve a summons on the debtor requiring him or her to appear before the court. 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 certain court orders.
At the default hearing, debtors may be required to show the court why the maintenance order should not be enforced or be examined under oath about their finances. The debtor may also have to show why he or she should not be committed to prison for willfully defaulting in the payment of maintenance.
If a default hearing is scheduled, it may only be adjourned or taken off the court list if the debtor establishes a satisfactory payment arrangement or complies with the terms of any default order issued by the master.
Warrants for arrest and imprisonment
Only a court may issue warrants for a debtor's arrest or order that the debtor be imprisoned for up to 90 days. Release from prison depends on whether the debtor complies with the terms of the default order or otherwise establishes a satisfactory payment arrangement with MEP.
Asset seizure and liquidation, third party orders, surveillance and police service liaison
For debtors in very serious default or those sheltering assets, MEP's Special Investigations Unit may become involved. MEP is authorized to seize a debtor's real and personal property, liquidating it in order to pay down the debtor's arrears. MEP can also obtain court orders against third parties who are sheltering the debtor's assets, such as family members and companies. Surveillance and police involvement are also a possibility. Enforcement by MEP's Special Investigations Unit may cease once the debtor makes an appropriate contribution toward his or her arrears and establishes a satisfactory payment arrangement.
"Help us find" posting
The "Help us find" web page is intended to help locate individuals who are registered with MEP, have chronically defaulted on their court ordered maintenance payments and cannot be found. The only debtors considered for this website are those who owe at least six months of arrears; have had other collection action placed to encourage them to come forward; cannot be found through MEP's extensive list of searches (including searches of motor vehicle registrations); have had their files screened by MEP's Special Investigations Unit; and after all of the above, still cannot be located. Their photograph will be removed once they are found or MEP otherwise considers it appropriate.
The Maintenance Enforcement Act also allows MEP to advertise for debtors' assets and employment. In very rare cases, the "Help us find" web page will be used for this purpose.