Acts and Regulations

C-33 - Creditors Relief Act

Full text
Repealed on 1 December 2019
CHAPTER C-33
Creditors Relief Act
Repealed: 2013, c.32, s.8
Definitions
1In this Act
“clerk” means the clerk of The Court of Queen’s Bench of New Brunswick;(greffier)
“financial institution” means(institution financière)
(a) a bank to which the Bank Act (Canada) applies,
(b) a loan or trust company licensed under the Loan and Trust Companies Act, or
(c) a credit union incorporated under the Credit Unions Act or any former Credit Unions Act of the Province;
“judge” means a judge of The Court of Queen’s Bench of New Brunswick;(juge)
“sheriff” includes coroner. (shérif)
R.S., c.50, s.1; 1979, c.41, s.32; 1994, c.11, s.1
Repealed
2Repealed: 1979, c.41, s.32
R.S., c.50, s.2; 1966, c.43, s.1; 1979, c.41, s.32
Definitions for sections 2.2 to 2.5
2.1In this section and sections 2.2 to 2.5
“attachable debt” means a debt that can be made the subject of an attaching order under the Garnishee Act;(créance saisissable)
“Court” means The Court of Queen’s Bench of New Brunswick;(Cour)
“enforcement proceeding” means any proceeding authorized by the Absconding Debtors Act, Arrest and Examinations Act, Creditors Relief Act, Garnishee Act, Judicature Act, Memorials and Executions Act or the Rules of Court to be taken for the purpose of enforcing a money judgment or for the purpose of enforcing the claims of creditors against the personal property of a debtor;(procédure d’exécution)
“exigible personal property” means any personal property of a judgment debtor that can be made the subject of an enforcement proceeding except a debt that can be made the subject of an enforcement proceeding only by way of an attaching order under the Garnishee Act;(bien personnel exigible)
“judgment creditor” means a person in whose favour there is a subsisting money judgment;(créancier sur jugement)
“judgment debtor” means a person against whom there is a subsisting money judgment;(débiteur sur jugement)
“money judgment” means a judgment or order for the recovery or payment of money or that part of a judgment or order which requires a person to pay money and includes a certificate under this Act;(jugement monétaire)
“notice of judgment” and “notice of claim” mean the data authorized by the regulations under the Personal Property Security Act to be registered in the Registry to effect a registration pursuant to this Act and, where the context permits, includes the data authorized to be registered to effect an amendment, renewal or discharge of a registration;(avis de jugement) et (avis de réclamation)
“personal property” means personal property as defined in the Personal Property Security Act;(bien personnel)
“Registry” means the Personal Property Registry established under subsection 42(1) of the Personal Property Security Act.(Réseau d’enregistrement)
1993, c.36, s.2; 2005, c.13, s.6
Registration of a notice of judgment
2.2(1)A judgment creditor who has obtained a money judgment may register a notice of judgment in the Registry in accordance with the regulations under the Personal Property Security Act.
2.2(2)Registration of a notice of judgment is effective for the period of years specified in the registration to a maximum of twenty years after the date of the judgment to which the registration relates.
2.2(3)A registration may be amended or renewed by registering an amendment or renewal of the notice of judgment at any time before the registration expires but the registration shall not have an aggregate registration life of more than twenty years after the date of the judgment to which the registration relates.
2.2(4)A judgment creditor shall discharge the registration of a notice of judgment within thirty days after the judgment is satisfied or within thirty days after the occurrence of any other event as a result of which there is no longer a subsisting judgment.
2.2(5)Where a judgment creditor fails or refuses to comply with subsection (4), the judgment debtor or any other person with an interest in the exigible personal property of the debtor or the attachable debts of the debtor may give a written demand to the judgment creditor to discharge the registration within fifteen days after the demand is given.
2.2(6)If a judgment creditor fails to comply with a demand under subsection (5) within fifteen days after it is given or fails to give to the person giving the demand an order of the Court confirming that the registration need not be discharged, the person giving the demand may register the discharge.
2.2(7)On application by the judgment creditor or judgment debtor or any other person with an interest in the exigible personal property or attachable debts of the debtor, the Court may order that a registration of a notice of judgment be maintained on any condition and for any period of time or may order that the registration be discharged.
2.2(8)No fee or expense shall be charged by a judgment creditor for compliance with a demand under this section.
1993, c.36, s.2
Binding effect of registration
2.3(1)Personal property of a judgment debtor shall not be bound except by registration of a notice of judgment in accordance with subsection 2.2(1).
2.3(2)Registration of a notice of judgment binds all of the judgment debtor’s non-exempt exigible personal property on registration and all non-exempt exigible personal property acquired by the judgment debtor after registration from the time of its acquisition.
2.3(3)Registration of a notice of judgment binds all non-exempt attachable debts owing to the judgment debtor on or after registration from the time the debt becomes an attachable debt except as against the person who owes the debt to the judgment debtor.
2.3(4)Registration of a notice of judgment binds the personal property of the judgment debtor only while the judgment is a subsisting judgment.
2.3(5)Subject to this section, an interest acquired in personal property that is bound by a registration of a notice of judgment is subordinate to the interest of
(a) the judgment creditor,
(b) all persons entitled by this Act or otherwise to participate in a distribution of personal property subject to the interest of a creditor referred to in paragraph (a), and
(c) a sheriff and a representative of creditors for the purpose of enforcing the rights of a creditor referred to in paragraph (a).
2.3(6)A person to whom personal property bound by a notice of judgment is transferred has priority as against the persons referred to in subsection (5) in the same circumstances that a transferee of personal property subject to a security interest perfected by registration has priority as against the secured party under subsections 30(1) to 30(4), subsections 30(6) and 30(8) and section 31 of the Personal Property Security Act, and those provisions apply with the necessary modifications.
2.3(6.1)If personal property that is bound by a notice of judgment is investment property as defined in the Personal Property Security Act,
(a) the registration of the notice of judgment does not limit the rights of a protected purchaser of a security under the Securities Transfer Act,
(b) the interest of a protected purchaser of a security under the Securities Transfer Act has priority over the interest of a person referred to in subsection (5) to the extent provided in that Act, and
(c) the registration of the notice of judgment does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under the Securities Transfer Act.
2.3(7)For the purposes of subsection 20(1) of the Personal Property Security Act and subject to section 22 of that Act, the non-exempt exigible personal property of a judgment debtor and the non-exempt attachable debts of a judgment debtor are bound by registration of a notice of judgment notwithstanding that the security interest referred to in subsection 20(1) of the Personal Property Security Act attached before the notice of judgment was registered.
2.3(8)A lien on goods bound by registration of a notice of judgment that arises as a result of the provision in the ordinary course of business of materials or services in respect of the goods has priority over the interest of the judgment creditor in the goods.
2.3(9)An enforcement proceeding for the purpose of enforcing a money judgment shall not be commenced until a notice of judgment has been registered in the Registry in relation to the judgment.
2.3(10)Where an interest acquired in personal property that is bound by registration of a notice of judgment is subordinate to the interest of a judgment creditor,
(a) the property is subject to enforcement proceedings to the same extent as if the subordinate interest did not exist, and
(b) a person who acquires the property as a result of enforcement proceedings obtains title free of the subordinate interest.
2.3(11)Personal property of a judgment debtor that is bound by the registration of a notice of judgment is bound for the amount of the judgment, costs and accrued interest less any amounts received by the judgment creditor.
2.3(12)An interest in personal property is not subordinate to the interest of a judgment creditor who has registered a notice of judgment by reason only that the interest is subordinate to the interest of another judgment creditor who has registered a notice of judgment but nothing in this section creates any priority as between judgment creditors who have registered notices of judgment.
2.3(13)A judgment creditor is not entitled to share in the proceeds of a levy by the sheriff against the personal property of the judgment debtor under this Act unless the creditor has registered a notice of judgment under subsection 2.2(1).
2.3(14)In applying the provisions of this Act for the purposes of determining the entitlement of creditors to share in the proceeds of a levy by the sheriff, a reference to an execution or certificate or the delivery of an execution or certificate to the sheriff shall be construed as a reference to a registered notice of judgment or the registration of a notice of judgment, unless the context otherwise requires.
2.3(15)Where a notice of judgment has been registered, the judgment creditor, the judgment debtor or any other person with an interest in personal property of the judgment debtor may apply to the Court for an order determining whether or not any item or kind of personal property is exempt, exigible or an attachable debt.
2.3(16)A person referred to in subsection (15) may amend the registration of the notice of judgment to disclose the particulars of the order made under that subsection.
1993, c.36, s.2; 2008, c.S-5.8, s.107
Registration of a notice of claim
2.4(1)A notice of claim may be registered in the Registry in accordance with the regulations under the Personal Property Security Act by
(a) a creditor who has applied for an absconding debtor’s warrant under the Absconding Debtors Act at any time after the warrant is issued, or
(b) Repealed: 2005, c.13, s.6
(c) a sheriff to whom an order to hold personal property disclosed on an examination of a debtor has been directed under subsection 11(1) of the Arrest and Examinations Act at any time after the order is made.
2.4(2)The commencement of any enforcement proceeding under any of the Acts referred to in subsection (1) does not prejudice the interest of a person to whom personal property that is the subject of the enforcement proceeding is transferred without knowledge until a notice of claim in relation to the enforcement proceeding is registered under subsection (1).
2.4(3)If a notice of claim is registered under subsection (1),
(a) the registration of the notice of claim does not limit the rights of a person who subsequently becomes a protected purchaser of a security under the Securities Transfer Act,
(b) the interest of a person who subsequently becomes a protected purchaser of a security under the Securities Transfer Act has priority over the interest of the person who registered the notice of claim to the extent provided in that Act, and
(c) the registration of the notice of claim does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under the Securities Transfer Act.
1993, c.36, s.2; 2005, c.13, s.6; 2008, c.S-5.8, s.107
Exemptions
2.5(1)Property that is exempt from an enforcement proceeding is not bound by the registration of a notice of judgment under subsection 2.2(1).
2.5(2)For the purpose of subsection (1), property that is exempt from seizure under section 58 of the Personal Property Security Act is property exempt from an enforcement proceeding.
1993, c.36, s.2
Conflicts with other legislation
2.6If there is a conflict between sections 2.1 to 2.5 and any other provision of this Act or of the Absconding Debtors Act, Arrest and Examinations Act, Garnishee Act, Judicature Act, Memorials and Executions Act or the Rules of Court, sections 2.1 to 2.5 prevail.
1993, c.36, s.2; 2005, c.13, s.6
Priority among creditors
3Subject to the provisions hereinafter contained, there is no priority among creditors by execution from The Court of Queen’s Bench of New Brunswick.
R.S., c.50, s.3; 1979, c.41, s.32
Duty of Sheriff on levy
4(1)Where a sheriff levies money upon an execution against the property of a debtor issued out of The Court of Queen’s Bench of New Brunswick and the amount endorsed to levy is seven hundred and fifty dollars or more, he shall forthwith enter in a book to be kept in his office, open to public inspection without charge, a notice stating that the levy has been made, and the amount thereof, and the money shall thereafter be distributed rateably amongst all execution creditors and other creditors whose writs, or certificates given under this Act, were in the sheriff’s hands at the time of the levy, or who delivered their writs or certificates to the sheriff within one month from the entry of notice; subject, however, to the provisions hereinafter contained as to the retention of dividends in the case of contested claims and to the payment of the costs of the creditor under whose execution the money was levied.
Duty of Sheriff on levy
4(2)The notice shall state the day upon which it was entered, and may be in the form prescribed by regulation.
Interpleader action
4(3)Subsections (1) and (2) do not apply to money received by a sheriff as the proceeds of a sale of property by him under an interpleader order; but, upon the determination of the interpleader issue in favour of the creditors, the money, whether in the sheriff’s hands or in court pending the trial of the issue, shall be distributed by the sheriff among the creditors contesting the adverse claim.
Interpleader action
4(4)Where proceedings are taken by the sheriff or other officer for relief under any provisions relating to interpleader, those creditors only who are parties thereto and who agree to contribute pro rata, in proportion to the amount of their executions or certificates, to the expense of contesting any adverse claim are entitled to share in any benefit that may be derived from the contestation of the claim, so far as may be necessary to satisfy their executions or certificates.
Interpleader action
4(5)The court or judge may direct that one creditor shall have the carriage of all interpleader proceedings on behalf of all creditors interested, and the costs thereof, as between solicitor and client, are a first charge upon the money or goods that may be found by the proceedings to be applicable upon the executions or certificates.
Adverse claim defined
4(6)“Adverse claim” in subsection (4) means any claim to contest which an interpleader issue is directed; and upon an interpleader application the court or judge has discretion to allow the other creditors who desire to take part in the contest a reasonable time in which to place their executions in the sheriff’s hands, upon such terms as to costs and otherwise as may be just and reasonable.
Duty of Sheriff on levy
4(7)Where the sheriff subsequently to the entry of the notice, but within the month, levies a further amount from the property of a debtor, that amount shall be dealt with as if it had been levied prior to the notice; but if after the month a further amount is levied, a new notice shall be entered and the distribution to be made of the amount so levied, and of any further amount levied within a month of the entry of the last mentioned notice, is governed by the entry thereof in accordance with the foregoing provisions of this section, and so on from time to time.
Priority among creditors
4(8)In distributing money under this section, creditors who have executions against goods or lands only, or against goods and lands, are entitled to share rateably with all others in money realized under execution against either goods or lands, or both.
Priority among creditors
4(9)Where a creditor has shared in a previous distribution, he is entitled to share in a subsequent one only in respect of the amount remaining due to him after crediting what he has received in any previous distribution.
R.S., c.50, s.4; 1979, c.41, s.32; 1980, c.14, s.1
Duty of creditor to establish claim
5No creditor is entitled to share in the distribution of money levied from the property of a debtor unless either by the delivery of a writ of execution, or otherwise under this Act, he has established a claim against the debtor either alone or jointly with some other person.
R.S., c.50, s.5
Procedure of creditor where writ of execution is in existence
6If a debtor permits an execution, issued against him out of The Court of Queen’s Bench of New Brunswick and under which any of his goods or lands have been seized by a sheriff, to remain unsatisfied in the sheriff’s hands till within two days of the time fixed by the sheriff for the sale thereof, or for twenty days after seizure, or allows an execution against his lands to remain unsatisfied for nine months after it is placed in the sheriff’s hands, the proceedings hereinafter authorized may be taken by other creditors as claimants in respect of debts, whether overdue or not; but in any proceedings taken in respect of a claim not due, there shall be a rebate of interest for the time to elapse before the debt is due.
R.S., c.50, s.6; 1979, c.41, s.32
Affidavit of claim
7(1)An affidavit, in the form prescribed by regulation, of the debt and the particulars thereof, may be made in duplicate by the creditor, or by one of the creditors in case of a joint debt, or by a person cognizant of the facts.
Affidavit of claim
7(2)The claimant shall serve on the debtor one of the duplicates, and a notice stating that the claimant intends to file the other duplicate with the clerk by reason of there being in the sheriff’s hands a writ of execution against the goods or lands of the debtor, and that the claimant intends to call on the sheriff to levy the said debt out of the property of the debtor, under the authority of this Act.
Affidavit of claim
7(3)The notice shall contain the other particulars, and may be in the form prescribed by regulation, and may be attached to the affidavit served, or endorsed thereon.
Service of out-of-province claim
7(4)Where the affidavit is to be served out of the Province the judge shall limit the time at which the next step may be taken by the claimant as hereinafter provided.
R.S., c.50, s.7
Notice of debtor respecting address for service
8(1)An execution debtor may give notice in writing to the sheriff that any claims to be served upon him may be served upon any attorney in the Province, whose name and address is given, or by mailing the claim to an address stated in the notice; the sheriff shall thereupon enter the notice in the book, and so long as an execution that was in the sheriff’s hands at the time the notice was given remains in his hands, shall repeat the entry immediately below any notice, in the form mentioned in subsection 4(2), given in respect of the execution, unless the notice is revoked in writing, in which case the entry or entries thereof shall be marked “revoked.”
Service of debtor’s attorney
8(2)So long as the notice remains unrevoked as aforesaid, an affidavit of claim and accompanying notice under this Act may be served upon an execution debtor by serving them upon the attorney in accordance with this Act where an attorney is named, or if mailing is required, then by mailing them, enclosed in an envelope, prepaid and registered to the address given in the notice; but the judge may make such other order as to the mode in which service may be effected, as to him may seem just.
Service of debtor where debtor’s address unknown
8(3)Where the notice mentioned in subsection 7(3) served on a debtor does not state some address within the Province at which service may be made upon the claimant or does not give the name and address of some attorney in the Province who may be served in the claimant’s behalf, service of any notice, paper or document may be made upon the claimant by filing a copy thereof with the clerk of The Court of Queen’s Bench of New Brunswick for the judicial district in which the proceedings are being taken.
Filing of duplicate affidavit and copy of notice
8(4)The claimant shall file with the clerk of The Court of Queen’s Bench of New Brunswick for the judicial district in which the sheriff has the execution one of the duplicate affidavits of claim, and a copy of the said notice, with an affidavit of due service, in the form prescribed by regulation.
Filing of certificate of Sheriff
8(5)Prior to or simultaneously with the filing with the clerk of the affidavit, there shall be filed with him the certificate of the sheriff, or an affidavit, showing that proceedings have been had against the debtor that entitle the creditor to proceed under this Act.
Substituted or other service
8(6)Where no notice is given by the execution debtor, as provided for in subsection (1), a copy of the affidavit and the notice shall, where practicable, be personally served upon the debtor; but if it is made to appear to a judge that the claimant is unable to effect prompt personal service, the judge may order substituted or other service, or may appoint some act to be done that shall be deemed sufficient service.
R.S., c.50, s.8; 1966, c.43, s.2; 1979, c.41, s.32
Certificate of clerk respecting uncontested claim
9(1)If the claim is not contested in manner hereinafter mentioned, the clerk, after ten days from the day of personal service, or service under subsection 8(2), or within the time mentioned in the order, as the case may be, on application and the filing with him of proof of service upon the debtor of an affidavit and notice in accordance with this Act, or proof of compliance with a judge’s order in that behalf, or upon the determination of the dispute in favor of the claimant, either in whole or in part, shall deliver to the creditor, or anyone on his behalf, a certificate in the form prescribed by regulation; and where the claim is only disputed as to a part, the creditor may elect, by writing filed with the clerk, to abandon that part, and obtain a certificate as to the residue.
Delivery of certificate to Sheriff
9(2)The certificate shall be delivered by the claimant to the sheriff, and thereby from the time of the delivery the claimant shall be deemed to be an execution creditor within the meaning of this Act, and to be entitled to share in whatever is made under the executions of creditors in the sheriff’s hands, as if he had delivered to the sheriff an execution against lands or goods or both, as the case may be, and the certificate in like manner binds the lands and goods of the debtor; subject, however, to the debt being afterwards disputed by a creditor, as hereinafter provided for.
Interpleader
9(3)A certificate under this Act shall, in interpleader proceedings, be deemed to be an execution.
Address for service
9(4)If the certificate is obtained by an attorney, the name and place of abode of the attorney shall be endorsed thereon, and if the certificate is sued out by the claimant in person, there shall be endorsed thereon an address in the Province, at which service may be made upon the claimant; and, in default thereof, service of any notice, paper or document may be made upon the claimant by filing a copy thereof with the clerk of The Court of Queen’s Bench of New Brunswick for the judicial district in which the proceedings are being taken.
Levy by Sheriff on receipt of certificate
9(5)On receiving the certificate the sheriff shall make a further seizure of the lands and tenements, or goods and chattels, or both, as the case may be, of the debtor to the amount of the debt so claimed, and the sheriff’s fees; and so on from time to time in case more certificates are received after the further seizure so made.
Duration and renewal of certificate of clerk
9(6)A certificate under this Act remains in force for three years from the date thereof, and no longer unless renewed, but a certificate may be renewed in the same manner as a writ of execution, but notwithstanding the expiry of a writ or certificate during the month in which a notice of levy having been made is required to be posted, the writ and certificate shall, as to any money levied during the month, be deemed to be in full force and effect.
R.S., c.50, s.9; 1966, c.43, s.3; 1979, c.41, s.32
Power of debtor or other creditor to contest claim
10(1)The claim may be contested by the execution debtor, or by a creditor interested in contesting the same.
Affidavit of person contesting claim
10(2)If the debtor contests the claim, he shall file with the clerk an affidavit stating that he has a good defence to the claim, or to a specified part of the claim on the merits, but the judge may dispense with the affidavit, on terms or otherwise.
Affidavit of debtor contesting claim
10(3)The debtor shall file the affidavit and serve upon the claimant a copy thereof within ten days after the personal service, or service under subsection 8(2), upon him of the affidavit of claim and the notice, or within the time that the judge by an order dispensing with personal service directed, or within any further time that the judge may allow; the affidavit shall have endorsed thereon an address in the Province, at which service may be made upon the debtor, or the address of some attorney in the Province who may be served in the debtor’s behalf, and in default thereof, service of any notice, paper or document may be made upon the debtor by filing a copy thereof with the clerk of The Court of Queen’s Bench of New Brunswick for the judicial district in which the proceedings are being taken.
Affidavit of creditor contesting claim
10(4)If the contest is by a creditor, he shall file with the clerk an affidavit to the effect that he has reason to believe that the debt claimed is not really and in good faith due from the debtor to the claimant, but the judge may dispense with the affidavit, on terms or otherwise.
Delivery of affidavit to Sheriff
10(5)The affidavit by a creditor may be so filed, and a certificate thereof delivered to the sheriff at any time before distribution is made.
Notice to claimant respecting contest
10(6)The creditor shall in all cases be given notice of a contest of his claim by either the debtor or other creditor, the sufficiency of which notice shall be decided by the judge.
R.S., c.50, s.10; 1966, c.43, s.4; 1979, c.41, s.32
Levy of Sheriff where claim contested
11(1)Where a claim is contested by a creditor after a certificate has been placed in the sheriff’s hands, the sheriff unless the judge otherwise orders shall proceed and levy as if such contestation had not been made, and the sheriff shall, until the determination of the contestation, retain in a financial institution the amount that would be apportionable to the claim if valid, and he shall, as soon after the expiry of the said month as practicable, distribute the residue of the money made amongst those entitled.
Application of claimant where claim contested
11(2)The claimant whose claim is contested may apply to a judge for an order allowing his claim and determining the amount; and in case he does not make such application within eight days of his receiving notice of the contestation, or within such further time if any as the judge upon the delay being reasonably accounted for may allow, he shall be taken to have abandoned his claim.
Court order allowing other creditors to enter contest
11(3)Where the contestant is a creditor and there is reason to believe that the contestation is not being carried on in good faith, any other creditor may apply for an order permitting him to intervene in the contest.
R.S., c.50, s.11; 1994, c.11, s.2
Powers of Judge respecting disputed claim
12(1)The judge may determine any questions in dispute in a summary manner, or may direct an action or issue in any court for the trial thereof, and may make such order as to the costs of the proceedings as may be just.
Repealed
12(2)Repealed: 1979, c.41, s.32
Trial of disputed claim
12(3)Where an issue is directed, it shall be tried in all respects as if it is an action in the court in which it is ordered to be tried.
R.S., c.50, s.12; 1966, c.43, s.5; 1979, c.41, s.32
Court order respecting examination of witnesses
13(1)The judge may at any time, either before or at the trial, make an order for the examination of the parties, or others, before him, at the time and place that he appoints, as he may think necessary in the interests of justice.
13(2)A person guilty of disobedience to such an order is liable for contempt of court.
R.S., c.50, s.13
Memorandum of judgment of creditor
14A creditor who has recovered a judgment in a court other than in The Court of Queen’s Bench of New Brunswick may serve upon the sheriff a memorandum of the amount of his judgment and of the costs to which he is entitled, certified under the hand of the clerk in case there is a clerk, or if not, under the hand of the presiding justice, and the memorandum so served shall have the same effect for the purposes of this Act, as if the creditor had delivered to the sheriff a writ of execution directed to the sheriff from The Court of Queen’s Bench of New Brunswick.
R.S., c.50, s.14; 1979, c.41, s.32
Use of certificate of clerk in other counties
15Where a creditor has taken in one county the prescribed proceedings in respect of his claim and desires to establish his claim for the purposes of this Act in another county also, he may do so by obtaining from the clerk another certificate, in the form prescribed by regulation, and delivering it to the sheriff responsible for the other county, and the delivery of the certificate to the sheriff has the same effect for the purposes of this Act in the county in which the delivery takes place, from the day of the delivery, as if a new notice and affidavit of claim had been served for the county and other proceedings had in respect thereof under the provisions of this Act.
R.S., c.50, s.15; 1988, c.42, s.20
Binding effect of Judge’s decision in all counties
16(1)If a claim is contested in one county, the decision thereon, as between the parties to it, determines the amount of the claim for the purposes of this Act in all counties in which the claim is filed, and the certificate of the clerk of The Court of Queen’s Bench of New Brunswick for the judicial district in which the contest has taken place of the result thereof is prima facie proof of the decision.
Issuance of certificate of clerk to certain parties
16(2)A certificate shall, upon payment of the prescribed fee, be granted to any party to the proceedings who applies therefor.
R.S., c.50, s.16; 1966, c.43, s.6; 1979, c.41, s.32
Entry book of clerk
17(1)The clerk shall keep a book in which, before granting a certificate or issuing an execution for a claim, he shall enter the following particulars with reference to every claim in respect of which he gives a certificate under this Act:
(a) the name of the claimant and of the debtor;
(b) the date of entry of judgment;
(c) the amount of debt, exclusive of costs;
(d) the amount of costs;
(e) if the proceedings have been set aside, this fact, and shortly the reasons therefor.
Entry book of clerk
17(2)The entry, subject to the provisions of this Act, is an award of judgment for the debt and costs, and has the same effect as an entry of judgment for non-appearance to a specially endorsed writ.
Entry book of clerk
17(3)The clerk shall index the entries in the book alphabetically under the names of the debtors.
Entry book of clerk
17(4)If the original papers are lost or destroyed a copy of the entry in the book is evidence of all matters therein set forth.
Judgment in ordinary manner
17(5)The filing of a claim and obtaining a certificate under this section does not prevent the creditor from proceeding to judgment in the ordinary manner.
Writ of execution
17(6)A creditor entitled to a certificate from the clerk may sue out a writ of execution into any county in the same manner as on an ordinary judgment.
R.S., c.50, s.17
Power to enlarge time limits for payment by debtor
18(1)The judge, before or after a certificate is issued by the clerk under this Act or delivered to the sheriff, may, on the application of the debtor and notice to a claimant, give to the debtor further time to pay any claim, where the judge is of the opinion that this can be done without injustice to the creditor, or he may give the debtor further time on terms that in the opinion of the judge are just.
18(2)There may be successive orders for this purpose, but no claim shall be delayed by such orders for more than three months in all.
18(3)This section does not apply to creditors who have obtained judgment in the ordinary way, and the orders for time are not to prejudice executions obtained by such creditors on such judgments.
R.S., c.50, s.18
Duty of Sheriff on levy
19(1)If the debtor, without any sale by the sheriff, pays the full amount owing in respect of the executions and claims in the sheriff’s hands at the time of such payment, and no other claim has been filed with the clerk, or in case all executions and claims in the sheriff’s hands are withdrawn, and any claims served are paid or withdrawn, no notice shall be entered as required by section 4, and no further proceedings shall be taken under this Act against the debtor by virtue of the executions having been in the sheriff’s hands.
Effect of withdrawal of foundation action on claim
19(2)Save as aforesaid, after a certificate has been filed with the sheriff, the withdrawal or expiry of the writ upon which the proceedings are founded, or any stay upon the writ, or the satisfaction of the plaintiff’s claim thereon, or the setting aside or return of the writ, shall not affect the proceedings to be taken under this Act and except so far as the action taken in regard to the writ may affect the amount to be levied, the sheriff shall proceed and levy upon the goods or lands of the debtor, or both, as he would have proceeded had the writ or writs remained in his hands in full force to be executed, and may also take the like proceedings as he would have been entitled to take had the writ been a writ of venditioni exponas.
Effect of payment by debtor before sale
19(3)If a debtor voluntarily, and without any sale by the sheriff, pays to the sheriff part of the amount owing in respect of an execution or claim in the sheriff’s hands, and there is at the time no other execution or claim in the sheriff’s hands, the sheriff shall apply the money on the execution or claim so in his hands, and section 4 does not apply to the money so received by the sheriff.
R.S., c.50, s.19
Costs
20The clerk shall ascertain and state in his certificate the amount of the costs to which the claimant is entitled as against the debtor, which costs shall be in accordance with the schedule of costs established under section 39.
R.S., c.50, s.20; 1966, c.43, s.7
Payment into court of debtor’s fund
21Where there is in any court a fund belonging to an execution debtor, or to which he is entitled, the fund, or a sufficient part thereof to meet the claims in the sheriff’s hands, may on the application of the sheriff or any party interested be paid over to the sheriff, and the fund shall be deemed to be money levied under execution within the meaning of this Act.
R.S., c.50, s.21
Goods held by officer of inferior court
22(1)If the sheriff does not find property of a debtor leviable under executions and claims in his hands sufficient to pay the same in full, and the sheriff finds goods and chattels in the hands of an officer of an inferior court, under a writ of execution against the debtor, the sheriff shall demand and obtain the goods and chattels from such officer, who shall forthwith deliver the same to the sheriff with a copy of every writ of execution in his hands against the debtor, and a memorandum showing the amount to be levied thereunder, including the fees of such officer, so far as proceedings have been taken by him, and showing the date upon which each process was received by him.
22(2)If the officer referred to in subsection (1) fails to deliver any of the goods, he shall pay double the value of the property retained, such double value to be received from such officer, with costs of suit and to be by the sheriff accounted for as part of the estate of the debtor.
22(3)Costs and disbursements of the officer referred to in subsection (1) shall be a first charge on the goods and chattels received from him.
22(4)The sheriff shall distribute the proceeds among the creditors under the provisions of this Act, and the execution creditors in such inferior court shall be entitled, without further proof, to stand in the same position as execution creditors whose writs are in the sheriff’s hands.
R.S., c.50, s.22; 1979, c.41, s.32; 1985, c.4, s.19
Ratable distribution of proceeds by Sheriff
23Where the amount levied by the sheriff is not sufficient to pay the execution debts and other claims, with costs, in full, the money shall be applied to the payment rateably of such debts and costs of the creditors, after retaining the sheriff’s fees, and after payment in full of the taxed costs and the costs of the execution to the creditor at whose instance and under whose execution the seizure and levy were made.
R.S., c.50, s.23
Interest
24The sheriff, if directed by an endorsement upon the certificate, shall, in addition to the amounts named in the certificate, levy interest thereon from the date of the certificate or the date named in that behalf in the certificate, and also such sums for fees and disbursements on every renewal of the certificate as may be allowed by the schedule of costs established under section 39.
R.S., c.50, s.24; 1966, c.43, s.8
Poundage rights of Sheriff
25Where money is to be distributed by a sheriff under this Act, the sheriff is not entitled to poundage as upon separate writs or claims, but only upon the net proceeds of the estate distributable by him, and at the same rate as if the whole amount had been payable upon one writ.
R.S., c.50, s.25
Money made on one writ deemed made on all
26(1)Where money is made upon a writ, the money shall be taken for the purposes of the sheriff’s return, and otherwise to be made upon all writs or certificates entitled to the benefit thereof, and the sheriff shall, upon payment being made to the person entitled upon such writ or certificate, endorse thereon a memorandum of the amount so paid, but he shall not, except on the request of the party issuing the writ, or by direction of the court out of which the writ issues, or of a judge having the authority of a judge of such court, return the writ until it has been fully satisfied, or unless the writ has expired by effluxion of time, in which case the sheriff shall make a formal return of the amount made thereon.
Action against Sheriff
26(2)The like proceedings may be taken to compel payment by the sheriff of money payable in respect of an execution or other claim as can now be had to compel the return by the sheriff of a writ of execution.
Action against Sheriff
26(3)In any proceedings against the sheriff under subsection (2) the court may make such order as to the payment of costs by the sheriff as to it may seem just.
R.S., c.50, s.26
Duty to record collections pending distribution
27(1)The sheriff shall, pending the distribution of money levied, keep in the book mentioned in section 4, a statement according to the form prescribed by regulation, showing in respect of any debtor, of whose property money has been levied:
(a) the amounts levied and the dates of levy;
(b) each execution, certificate or order in his hands at the time of entering the notice, required by section 4, or subsequently received during the month; the amounts thereof for debt and for costs, and the date of receipt.
27(2)The statement shall be amended from time to time as an additional amount is levied, or a new execution, certificate or order is received.
R.S., c.50, s.27
Duty to furnish information to creditors
28The sheriff shall at all times without fee answer any reasonable question that he may be asked orally with respect to the estate of the debtor by a creditor, or anyone acting on behalf of a creditor, and shall facilitate the obtaining by a creditor of full information as to the value of the estate, and the probable dividend to be realized therefrom in a county for which the sheriff is responsible, or any other information in connection with the estate that the creditor may reasonably desire to obtain.
R.S., c.50, s.28; 1988, c.42, s.20
Distribution of money where levy insufficient to cover debt
29(1)Where the money levied is insufficient to pay all claims in full and the time has come for distributing the money levied, the sheriff may forthwith distribute the same as directed by this Act or he may first prepare for examination by the debtor and his creditors a list of the creditors entitled to share in the distribution of the amount levied, with the amount due to each for principal, interest and costs; the list to be arranged so as, among other things, to show the amount going to each creditor under the provisions of this Act, and the total amount to be distributed; and the sheriff may deliver or send by post, prepaid and registered, to each creditor or his attorney, a copy of the list, with the several particulars aforesaid, and in such case the further proceedings may be as follows:
(a) if within eight days after all the copies have been delivered or posted, or within any further time the judge may allow, no objection is made as provided by this Act, the sheriff shall make distribution forthwith pursuant to the list;
(b) where an objection is made as provided by this Act, the sheriff shall forthwith distribute such an amount of the money made, and to such persons pari passu, as may not interfere with the effect of the objection in case the objection should be allowed;
(c) the sheriff may disregard objections that are frivolous, or manifestly insufficient to interfere with the distribution proposed, and distribute as if such objections had not been made.
29(2)Any person prejudiced by the proposed scheme of distribution may contest the same by giving notice in writing to the sheriff, stating therein distinctly his objection to the scheme, or any part thereof, and the grounds of objection.
29(3)The contestant shall, within eight days thereafter, apply to the judge for an order adjudicating upon the matter in dispute, otherwise the contestation shall be taken to be abandoned.
29(4)Upon obtaining an appointment from the judge, a copy thereof, together with a notice of the objections and grounds thereof, which may be in the form prescribed by regulation, shall be served by the contestant upon the debtor, unless he is the contestant, and upon the creditors, or such of them as the judge may direct, at least forty-eight hours before the hearing; and the mode of service may be personal or as determined by the judge.
29(5)The judge may determine any questions in dispute in a summary manner, or may direct an issue or action for the trial thereof, either by a jury or otherwise, and in any court, and may make such order as to the costs of the proceedings as may be just.
29(6)Subsection (5) is subject to the same provisions as are set forth in subsection 11(2).
29(7)Where under a contestation a claimant is held not entitled or only entitled to part of his claim, the money retained pending the contestation, or the portion as to which the claimant has failed, shall be distributed among the execution creditors and other creditors who would have been entitled thereto as the money would have been distributed had the claim in respect thereof not been made.
29(8)If an execution debtor, subsequent to the receipt of the first execution by the sheriff, and before the time for distribution has expired, has executed a mortgage or chattel mortgage, or otherwise charged any portion of his estate, the giving of such mortgage or other security does not have the effect of preventing subsequent execution creditors or other creditors, who have filed their claims as required by this Act, from sharing in the distribution of the money realized by the sheriff, or the sheriff from selling the interest seized under the first execution, but in distributing the money so realized the sheriff shall deduct and retain for the person entitled thereto the amount of any incumbrance so created pro rata from the amount that would otherwise be payable to the said subsequent creditors, but nothing herein contained has the effect of making valid any chattel mortgage that would otherwise be invalid.
R.S., c.50, s.29
Power to sell chattels subject to chattel mortgage
30The sheriff may, under an execution against goods and chattels that are subject to a chattel mortgage, sell all the interest of the debtor therein, and any purchaser from the sheriff, under a deed executed in the same manner as a sheriff’s deed of lands is required to be executed, has the same right in such goods and chattels as the debtor would have had but for the sale, and is entitled to take the like proceedings with respect to such goods and chattels and the payment of the mortgage or otherwise as the debtor could, but for the sale, have taken.
R.S., c.50, s.30
Duty of Judge to avoid unnecessary litigation
31Where several creditors are interested in a contestation either for or against the same, the judge shall give such directions for saving the expense of an unnecessary number of parties and trials, and of unnecessary proceedings, as may be just, and he shall direct by whom and in what proportions any costs incurred in the contestation or in any proceedings thereunder shall be paid, and whether any and what costs shall be paid out of the money levied.
R.S., c.50, s.31
Order of Judge respecting levy where claim contested
32(1)The judge may direct the sheriff to levy for an amount sufficient to cover a claim that is in dispute, or part thereof, or, if it appears to the judge that it is improbable that the defendant has other sufficient property, he may order the sheriff to retain in his hands during the contestation the shares that, if the claim is sustained, will be apportionable to it, or make an order combining the orders above authorized, or such similar order as may be just.
32(2)Under such order the sheriff has the same authority as he would possess under a writ of execution duly issued against the debtor and directing the sheriff to levy the like amount out of the goods and lands of the debtor.
R.S., c.50, s.32
Effect of Judge’s order
33The decision of the judge shall, subject to the provisions of section 36, bind all creditors, unless it appears the decision was obtained by fraud or collusion by the parties to the contestation.
R.S., c.50, s.33
Power to place money levied in financial institution
34If a sheriff has money in his hands that, by reason of the provisions of this Act or otherwise, he cannot immediately pay over to the execution creditors or other claimants under this Act, he shall deposit the money in a financial institution when it amounts to one hundred dollars, in a special account in his name as, “Trustee for the creditors of . . . . . . . . . . . . . . . . . . . . . . . . . . .” (the debtor).
R.S., c.50, s.34; 1994, c.11, s.3
Attachment of moneys owing to debtor
35(1)Where there are in the sheriff’s hands several executions and claims, and there are not, or do not appear to be, sufficient lands or goods to pay all and his own fees, he may apply for an order attaching any debt owing the execution debtor by any person resident in the Province, whether the debt is owing by such person alone or jointly with another person, and to procure the attachment the sheriff may take the same proceedings as a creditor; and in such case a writ of execution or other writ in the course of the proceedings, may be directed to him in the same manner as if the attachment were by a creditor; and the proceeds of the debts attached shall be distributed in the same manner as if he had realized the same under execution.
35(2)If the sheriff does not take such proceedings, any person entitled to distribution may take proceedings for the benefit of himself and all other persons entitled to distribution as aforesaid, and the person owing the attached debt shall pay the same to the sheriff.
35(3)Any judgment creditor who attaches a debt shall be deemed to do so for the benefit of himself and all creditors entitled under this Act; payment of the debt shall be made to the sheriff, who in making distribution shall apportion to such judgment creditor a share pro rata, according to the amount owing upon his judgment of the whole amount to be distributed under the provisions of this Act, but such share shall not exceed the amount recovered by the garnishee proceedings, unless the judgment creditor has placed a writ in the sheriff’s hands.
35(4)Money garnished and paid to the sheriff shall be deemed to be money levied under execution within the meaning of this Act, but unless the garnishee proceedings are taken by him, the sheriff is only entitled to poundage on such money at the rate of one and one-quarter per cent.
35(5)Where a garnishee under an order of the court pays to the attaching creditor, or a garnishee without notice that the sheriff is entitled pays the amount of his debt into court and the amount is paid out to the attaching creditor, the sheriff may recover from the creditor the amount so received.
R.S., c.50, s.35; 1966, c.43, s.9
Appeal
36Where a party to a contestation or matter upon which a judge has made or rendered a final order or judgment is dissatisfied with the order or judgment, and the same is in respect to a question involving a sum greater than one hundred dollars, he may appeal therefrom to the Court of Appeal, subject to the same practice as applies to appeals from The Court of Queen’s Bench of New Brunswick.
R.S., c.50, s.36; 1979, c.41, s.32
Powers of Judge
37A judge for the purpose of giving effect to this Act and carrying out its provisions, has all the powers that The Court of Queen’s Bench of New Brunswick, or a judge thereof, has by law for other purposes; and any proceedings wrongly taken under this Act may be set aside by the judge, with or without costs, as he may think fit.
R.S., c.50, s.37; 1979, c.41, s.32
Effect of want of form on proceedings
38A proceeding under this Act is not void for any defect of form; and the rules, for amending or otherwise curing irregularities or defects, in force in The Court of Queen’s Bench of New Brunswick apply to this Act.
R.S., c.50, s.38; 1979, c.41, s.32
Schedule of fees
39(1)The Lieutenant-Governor in Council may establish a schedule of fees and costs under this Act.
Regulations
39(2)The Lieutenant-Governor in Council may make regulations prescribing forms required under this Act.
R.S., c.50, s.39; 1966, c.43, s.10; 1973, c.74, s.23
Application of Act to law respecting insolvency
40This Act does not affect any law respecting insolvency in force in this Province, but is subject to such law.
R.S., c.50, s.40
N.B. This Act is consolidated to December 1, 2019.