Part Three: Judgment and Collecting What Is Owed

Water co-ops rely on timely member payments to stay financially sustainable. Every dollar collected supports operations, maintenance, reserves, and the long-term health of your community’s water system. Sometimes, despite reasonable efforts to work with a member, a collection issue proceeds to civil claims and the court issues a judgment. This judgment confirms what the member owes, including the original debt, interest, filing fees, and other recoverable costs. This Part Three of our Collections series outlines what happens after a judgment and how your co‑op can move forward.

After the Judgment

Once a judgment is issued, the debtor may choose to pay the amount voluntarily. This is the simplest outcome and avoids further time and expense for everyone involved. However, if the debtor does not pay, it is important to know that the court will not assist the co-op in collecting the money. That responsibility falls to the co-op.

All collections steps are taken through the Court of King's Bench. While your civil claim may have been filed at the Alberta Court of Justice, the Court of King's Bench is the higher court that handles enforcement once a judgment has been given. The first step is to take your Certificate of Judgment to the Court of King's Bench counter to prepare a Writ of Enforcement.

The Writ of Enforcement

A Writ of Enforcement is the document that enables your ability to garnish wages or seize property as part of the collections process. It is filed with the Clerk of the Court of King's Bench and then registered with the Personal Property Registry. Without it, you cannot proceed with either enforcement option.

The Writ must include the details of the judgment, the names and addresses of both the debtor and the co-op, and the current amount owing. Once the Writ is registered, you can move forward with either collections option.

Option 1: Garnishment

Garnishment is a legal way to collect money owed by intercepting it before it reaches the debtor. Rather than waiting for the debtor to pay you directly, a court order is used to redirect money from a third party, such as an employer or a bank, to the court on your behalf. As an example, if a co-op garnishes the bank account of a debtor, the bank is legally required to redirect funds to the court instead of making them available to the debtor. The court would then notify the co-op when funds are received.

Option 2: Seizure of Assets

Seizure of Assets allows you to collect what is owed by taking possession of the debtor's property and selling it. After registering your Writ of Enforcement, you can ask a Civil Enforcement Agency to carry this out on your behalf. A Civil Enforcement Agency is a provincially licensed service with the legal authority to physically seize assets such as vehicles or equipment, which are then sold to satisfy the debt.

It is worth noting that not all assets can be seized. Alberta law exempts certain items such as basic household furnishings and tools needed for work.

A Note on Costs

Some enforcement costs, such as service fees and registry search fees, may be recoverable and added to the amount the debtor owes. However, the co-op will need to pay these expenses upfront and provide receipts to the court.

Given the time and cost involved in enforcement, it is worth weighing your options carefully. If the debtor has limited assets or income, continuing to hold a caveat on the property, which was covered in Part 2 of the series,  may be the most practical path forward. The caveat will stay on title until the debt is resolved, meaning it must be addressed if the member ever sells or refinances.

Closing Thoughts

The collections process helps protect your co‑op’s financial health and ensures fairness for all paying members. While reaching the enforcement stage is never ideal, having clear procedures and strong documentation, such as well‑crafted bylaws and service agreements, as outlined in Parts One and Two of the series, puts your co‑op in the best position to recover what is owed.

If you are unsure about any step in this process, consult a lawyer before moving forward.

For Additional Information

Review your membership agreement and bylaws for your water co‑op, and visit our Late Payments, Collections, and Caveats Governance page for more information.