C-25.01 - Code of Civil Procedure

Section 776 Disposition versions

2016-01-01

776. The bailiff or the court clerk distributes seized income according to the following order of collocation:

(1)  execution costs, including the cost of administering an instalment payment agreement and distributing the seized income, if applicable;

(2)  support claims, for the difference between the portion of the income seized by reason of the particular nature of the claim and the portion of income that is ordinarily seizable, in proportion to the amount of the claims;

(3)  prior claims;

(4)  hypothecary claims; and

(5)  unsecured claims.

In all cases, the bailiff or the court clerk pays to a support creditor, out of the portion of income that is ordinarily seizable, the amount required to make the total amount distributed to that creditor equal to at least one-half of the sums distributed every month, up to the amount of support due.

However, a spouse’s claim based on a marriage or civil union contract cannot be paid until all other claims have been discharged.

When the full amount of a claim has been paid to the creditor, the bailiff or the court clerk notifies a notice of payment to the debtor and the creditor. If the notice is not contested by the creditor within 15 days after the notification, the bailiff or the court clerk may, on request, give an acquittance by certifying on the debtor’s copy of the notice of payment that it has not been contested.

2014, c. 1, a. 776.