Acts and Regulations

2011, c.100 - Absconding Debtors Act

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Repealed on 1 December 2019
2011, c.100
Absconding Debtors Act
Deposited May 13, 2011
Repealed: 2013, c.32, s.1
Definitions
1The following definitions apply in 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.1973, c.A-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 $50 above all discounts depart from or keep concealed within the Province with intent to defraud the creditors of that person or persons, a creditor may make an 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, after which the 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 execute it without delay, and the warrant on delivery to a sheriff has priority over all other processes not actually executed.
R.S.1973, c.A-2, s.2; 1987, c.6, s.1
Notice of proceedings
3The judge who issues the warrant shall immediately after that 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 the judge’s opinion advisable, and the proceeds held by the sheriff to be applied for the benefit of the estate.
R.S.1973, c.A-2, s.3; 1983, c.7, s.1
Proceedings against absent debtor
4(1)The estate of the debtor or debtors if jointly or severally indebted to the amount stated in section 2 may be proceeded against by a creditor in like manner as nearly as possible as against an absent or concealed debtor if one of the following conditions exists:
(a) a person severally indebted was not at the time of contracting the debt nor at the time set for its payment resident in the Province otherwise than by reason of carrying on business in the Province, and the debt was contracted in respect of that business, and the debtor was not within the Province during the month next preceding the application;
(b) the debtors are joint debtors and were not at the time of contracting the debt nor at the time set for its payment resident in the Province otherwise than by reason of carrying on business in the Province, and the debt was contracted in respect of that business, and one of the joint debtors was not within the Province during the month next preceding the application;
(c) 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) 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.
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 the debtor or debtors before execution can issue in an ordinary action.
R.S.1973, c.A-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 taken may, within 60 days after the taking and on affidavit of the facts, apply to a judge for a summons returnable not less than four clear days after service of it on the sheriff, and on the return of the summons the judge shall determine the ownership of the property.
5(2)If the judge finds that the property belongs to the claimant, the judge may order the costs to be paid by the sheriff personally or out of the estate of the debtor, but no other action arises against the sheriff for the erroneous taking unless it was malicious.
5(3)If the verdict is otherwise, the sheriff shall recover his or her costs, charges and expenses from the claimant by attachment on the order of the judge.
R.S.1973, c.A-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 the property to any person other than the sheriff, that person shall be deemed to have acted fraudulently and is liable to answer for the property or its value to the sheriff for the benefit of the estate, and if that person is sued by the debtor or on the debtor’s behalf, that person may plead the general issue and give the special matter in evidence.
R.S.1973, c.A-2, s.6; 1983, c.7, s.1
Sale by debtor void
7After publication of the notice mentioned in section 3, every sale, conveyance, power of attorney and other act by the debtor affecting the debtor’s estate is void.
R.S.1973, c.A-2, s.7
Application by debtor to set warrant aside
8(1)Before the end of the 60 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 or her that the judge 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 the witness in the form prescribed by regulation.
8(3)On hearing the parties the judge may grant a stay of the warrant or dismiss the application, and he or she may award costs to the successful party to be recovered by attachment.
8(4)If the judge grants the stay and certifies that there was probable cause for the proceeding and no malice, that decision is a bar to any action against the creditor.
R.S.1973, c.A-2, s.8
Meeting of creditors
9(1)If the debtor does not within 60 days after the publication of the notice satisfy the debtor’s creditors and if the warrant is not stayed, the sheriff shall, within ten days after the end of the 60 days, call a meeting of the creditors to be held in the sheriff’s office or other convenient place to be named in the notice, not later than 12 days after the last publication of the notice of the 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 that county then in a newspaper published in the Province and having general circulation in that county, and shall be sent by mail, postage 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 proved by affidavit, with the sheriff within 60 days after the date of the notice, and that all claims not filed within the time limited, or such further time if any as may be allowed by a judge, are wholly barred of any right to share in the proceeds of the estate, and that the sheriff is at liberty to distribute the proceeds of the estate as if any claim not so filed did not exist, but without prejudice to the liability of the debtor for it.
9(4)Any claim not filed within the time limited, or any extension allowed by a judge, is wholly barred of any right to share in the proceeds of the estate, and after the end of the time for proving, unless an order extending the time is previously served on the sheriff and then at the end of the 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 for it.
R.S.1973, c.A-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 stay of the 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 end of the 60 days limited in the notice, grant a summons returnable not less than four clear days after service, and on the return of the summons 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 summons has been duly served on the creditor or the creditor’s solicitor or agent, may make an order that even though the claim filed by that party is not satisfied by the debtor a stay of the warrant may be granted, and the stay shall be granted accordingly, if no other claim is unsettled, though the 60 days from the notice may have then elapsed.
10(4)The summons, if served on the solicitor of the creditor who instituted the proceedings, acts as a stay of all further proceedings until it is disposed of.
R.S.1973, c.A-2, s.10
Stay of warrant
11If the debtor pays to the opposite party or that party’s solicitor the amount awarded by the judge and costs, if any awarded (should any sum be awarded against the debtor), at any time within one week after the order for it is served, even though the 60 days limited in the notice may have sooner expired, the debtor, on complying with the other requirements of this Act, is entitled to have the warrant stayed, and the stay shall, on application, be so ordered.
R.S.1973, c.A-2, s.11
When judge’s award void
12If the warrant is stayed, 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.1973, c.A-2, s.12
Defence to action
13If any person is sued for anything done under the authority of this Act, that person 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.1973, c.A-2, s.14
Officers of the court
14Every 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 the duties of that person may be compelled and enforced by that court under the penalty of imprisonment as for contempt of court.
R.S.1973, c.A-2, s.15
Fees
15The 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.1973, c.A-2, s.16; 1979, c.41, s.2
Death or absence of judge
16If a judge before whom any proceedings are taken under this Act, by reason of death, resignation or otherwise, ceases to hold office, 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.1973, c.A-2, s.17
Appeal
17An appeal lies to the Court of Appeal from all decisions of a judge under this Act.
R.S.1973, c.A-2, s.18; 1979, c.41, s.2
Regulations
18The Lieutenant-Governor in Council may make regulations prescribing forms required under this Act.
R.S.1973, c.A-2, s.19
N.B. This Act was proclaimed and came into force September 1, 2011.
N.B. This Act is consolidated to December 1, 2019.