Acts and Regulations

A-2 - Absconding Debtors Act

Full text
Repealed on 1 September 2011
CHAPTER A-2
Absconding Debtors Act
Repealed: R.S.N.B. 2011, Schedule A
Definitions
1In this Act
“judge” means a judge of The Court of Queen’s Bench of New Brunswick;(juge)
“property” or “estate” means real and personal property and includes choses in action.(biens) ou (actif)
R.S., c.2, s.1; 1979, c.41, s.2
Proceedings against absconding debtor
2If any person indebted, or any persons jointly indebted, in a sum not less than fifty dollars above all discounts, depart from or keep concealed within the Province, with intent to defraud his or their creditors, a creditor may make the affidavit, in the form prescribed by regulation; the departure or concealment of the debtor or debtors to be verified by affidavit of two witnesses, of whom the creditor may be one, stating the reasons for their belief to the satisfaction of a judge, whereupon such judge may issue a warrant, in the form prescribed by regulation, to one or more of the sheriffs, and any sheriff to whom it is delivered shall forthwith execute the same, and the warrant on delivery to a sheriff has priority over all other processes not actually executed.
R.S., c.2, s.2; 1987, c.6, s.1
Notice of proceedings
3The judge who issues the warrant shall immediately thereafter issue a notice, in the form prescribed by regulation, and order the applicant to publish it once in The Royal Gazette and may direct any part of or all the property seized to be sold, if in his opinion advisable, and the proceeds held by the sheriff to be applied for the benefit of the estate.
R.S., c.2, s.3; 1983, c.7, s.1
Proceedings against absent debtors
4(1)Where one of the following conditions exists, namely:
(a) where a person severally indebted was not at the time of contracting the debt nor at the time fixed for the payment thereof resident in the Province otherwise than by reason of carrying on business therein, and the said debt was contracted in respect of said business, and the debtor was not within the Province during the month next preceding the application,
(b) where the debtors are joint debtors and were not at the time of contracting the debt nor at the time fixed for the payment thereof resident in the Province otherwise than by reason of carrying on business therein, and the debt was contracted in respect of said business, and one of the joint debtors was not within the Province during the month next preceding the application,
(c) where a person severally indebted was not at the time of contracting the debt resident in the Province but became a resident of the Province after contracting the debt, and has been absent from the Province for the six months next preceding the application, or
(d) where the debtors are joint debtors who were not at the time of contracting the debt resident in the Province but became residents of the Province after contracting the debt, and one of them has been absent from the Province for six months next preceding the application,
the estate of the debtor or debtors if jointly or severally indebted to the amount aforesaid, may be proceeded against by a creditor, in like manner as nearly as possible as against an absent or concealed debtor.
4(2)In the above cases, the absence may be proved by the oath of any person familiar with the facts.
4(3)There shall also be submitted a sworn allegation that there is danger that the property of the debtor or debtors may be removed from the Province or alienated by said debtor or debtors before execution can issue in an ordinary action.
R.S., c.2, s.4
Trial of claim to seized property
5(1)If a sheriff, through ignorance, takes property claimed by any other person, the person whose property is so taken may, within sixty days after such taking and on affidavit of the facts, apply to a judge for a summons returnable not less than four clear days after service thereof on the sheriff; and on the return thereof the judge shall determine the ownership of the property.
5(2)If the judge finds the property in the claimant, he may order the costs to be paid by the sheriff personally or out of the estate of the debtor, but no other action shall be against the sheriff for the erroneous taking unless it was malicious.
5(3)If the verdict is otherwise the sheriff shall recover his costs, charges and expenses from the claimant by attachment upon the order of the judge.
R.S., c.2, s.5
Requirement of payment to Sheriff
6If a person indebted to, or having the custody of any property of, an absconding, concealed or absent debtor, after the notice mentioned in section 3 is published, pays a debt or delivers such property to any person other than the sheriff, he shall be deemed to have acted fraudulently, and is liable to answer the same or the value thereof to the sheriff for the benefit of the estate; and if such person is sued by the debtor, or by his procurement, he may plead the general issue and give the special matter in evidence.
R.S., c.2, s.6; 1983, c.7, s.1
Sales by debtor void
7After publication of the notice mentioned in section 3 every sale and conveyance, power of attorney, and other act by the debtor affecting his estate is void.
R.S., c.2, s.7
Application by debtor to set warrant aside
8(1)Before the expiration of the sixty days mentioned in section 9, the debtor may, by petition under oath, in the form prescribed by regulation, apply to the judge who issued the warrant, and the judge may make an order directing the parties and their witnesses to appear before him that he may hear and determine the matter in a summary way.
8(2)If any witness neglects to appear, the judge on proof of the service of the order and of payment or tender of expenses, may grant an attachment, against him, in the form prescribed by regulation.
8(3)Upon hearing the parties the judge may grant a supersedeas of the warrant, or dismiss the application; and he may award costs to the successful party to be recovered by attachment.
8(4)If the judge grants the supersedeas and certifies that there was probable cause for the proceeding and no malice, the same shall be a bar to any action against the creditor.
R.S., c.2, s.8
Meeting of creditors
9(1)If the debtor does not within sixty days after the publication of the notice, satisfy his creditors, and if the warrant is not superseded, the sheriff shall, within ten days after the expiration of the said sixty days, call a meeting of the creditors to be held in his office, or other convenient place, to be named in the notice, not later than twelve days after the last publication of the notice of such meeting.
9(2)Notice of the meeting shall be published once in The Royal Gazette and once each week for three consecutive weeks in a newspaper published in the county where the debtor resided, and where no newspaper is published in such county then in a newspaper published in the Province and having general circulation in such county, and shall be sent by mail, post paid, to all creditors so far as they can be ascertained by the sheriff.
9(3)The notice calling the first meeting of creditors shall contain a notice that all creditors are required to file their claims, duly proven by affidavit, with the sheriff within sixty days from the date of such notice and that all claims not filed within the time limited, or such further time if any as may be allowed by a judge, shall be wholly barred of any right to share in the proceeds of the estate; and that the sheriff shall be at liberty to distribute the proceeds of the estate as if any claim not filed as aforesaid did not exist, but without prejudice to the liability of the debtor therefor.
9(4)Any claim not filed within the time limited, or any extension as aforesaid, shall be wholly barred of any right to share in the proceeds of the estate, and after the expiration of the time for proving, unless an order extending the time is previously served upon him, and then at the expiration of such extension, the sheriff may distribute the proceeds of the estate as if the claim did not exist, but without prejudice to the liability of the debtor therefor.
R.S., c.2, s.9; 1983, c.7, s.1
Adjudication and settlement of claims
10(1)If the debtor within the time limited satisfies the creditors who have filed their respective claims with the sheriff, a judge, on being satisfied by proof that the debtor has so satisfied the creditors, shall grant a supersedeas to such warrant.
10(2)If the debtor claims to have a set-off to any claim so filed, or the amount of any claim or its validity is disputed by the debtor, and the parties are unable to adjust their mutual claims or settle their dispute, a judge may, on application of the debtor at any time before the expiration of the sixty days limited in the notice, grant a summons returnable not less than four clear days after service, and on the return thereof the judge shall determine the rights of the parties.
10(3)If the creditor served does not appear on the return of the summons, the judge, on being satisfied that the same has been duly served on him, his solicitor or agent, may make an order that notwithstanding the claim filed by such party is not satisfied by the debtor a supersedeas to the warrant may be granted, and the same shall be granted accordingly, if no other claim is unsettled, though the sixty days from the notice may have then elapsed.
10(4)The summons, if served on the solicitor of the creditor who instituted the proceedings, shall act as a stay of all further proceedings until it is disposed of.
R.S., c.2, s.10
Supersedure of warrant
11If the debtor pays to the opposite party or his solicitor, the amount awarded by such judge and costs, if any awarded (should any sum be awarded against him), at any time within one week after the order therefor is served, notwithstanding the said sixty days limited in the notice may have sooner expired, he shall, on complying with the other requirements of this Act, be entitled to have the warrant superseded, and the same shall, on application, be so ordered.
R.S., c.2, s.11
When Judge’s award void
12If the warrant is superseded, the award made under the provisions of section 10 is void and in no way binding on the parties, or of any evidential value in any court for or against them.
R.S., c.2, s.12
Repealed
13Repealed: 2005, c.13, s.4
R.S., c.2, s.13; 2005, c.13, s.4
Defence to action
14If any person is sued for anything done in pursuance of this Act, he may plead the general issue and give the special matter in evidence, and this Act shall receive a liberal construction in favour of the creditors.
R.S., c.2, s.14
Officers of the Court
15Every trustee, sheriff, public officer, party, and minister of the law is subject to the jurisdiction of the court out of which the warrant issued, and the performance of his duties may be compelled and enforced by such court under the penalty of imprisonment as for contempt of court.
R.S., c.2, s.15
Fees
16The fees to be paid to the solicitors, clerks, witnesses and sheriffs, for anything done under and by virtue of this Act, shall be the same as in corresponding proceedings in The Court of Queen’s Bench of New Brunswick, as near as may be, and shall in all cases be taxed by the judge.
R.S., c.2, s.16; 1979, c.41, s.2
Death or absence of Judge
17When a judge before whom any proceedings are taken under this Act, by reason of death, resignation or otherwise, ceases to hold office, or is incapacitated by illness, or is absent from the Province, the proceedings may be continued, and any other proceedings in the matter may be instituted and carried on by and before any other judge.
R.S., c.2, s.17
Appeal
18An appeal lies to the Court of Appeal from all decisions of a judge under this Act.
R.S., c.2, s.18; 1979, c.41, s.2
Regulations
19The Lieutenant-Governor in Council may make regulations prescribing forms required under this Act.
1973, c.74, s.1
N.B. This Act is consolidated to September 1, 2011.