Coming to BC: Money Judgment Enforcement Act

British Columbia is overhauling how debts get collected with the new Money Judgment Enforcement Act (MJEA), which will replace the outdated Court Order Enforcement Act sometime in 2025. Whether you’re a creditor trying to collect money owed to you or a debtor concerned about asset seizure, this new law will significantly change the game. Here’s what you need to know.

The Current System is Broken

Under the current Court Order Enforcement Act, collecting on a judgment is like navigating a maze blindfolded. Creditors must make multiple court applications, wait for court dates, and jump through procedural hoops that often take months or years. Meanwhile, debtors face an unpredictable system where enforcement can drag on indefinitely – the current law allows creditors to pursue debts for up to 10 years. This outdated system wastes everyone’s time and money, which is why B.C. is finally modernizing to match what Alberta and Saskatchewan have already implemented.

How the New System Will Work

The MJEA creates a centralized Money Judgment Registry that will handle debt enforcement without requiring multiple court appearances. Think of it as a one-stop shop for judgment enforcement. Once you have a court judgment, you’ll register it with this new registry, and Civil Enforcement Officers will handle the heavy lifting – asset seizures, wage garnishments, and asset sales. This streamlined approach should reduce costs and delays, especially for smaller claims where the current court process often costs more than the debt itself.

What This Means for Creditors

If you’re owed money, the new system offers significant advantages. You’ll no longer need to hire a lawyer for multiple court applications or wait months for enforcement orders. The registry system should make it faster and cheaper to seize assets, garnish wages, and force asset sales. However, there’s a critical timing requirement: you must register your judgment with the new Money Judgment Registry within 2 years of obtaining it. This is a much shorter window than the current system, so you’ll need to act quickly after winning in court or risk losing your streamlined enforcement options. The message is clear – register fast or face complications.

What This Means for Debtors

The changes create both challenges and protections for people who owe money. On the challenging side, enforcement will likely happen faster since creditors won’t need to wait for court dates. Civil Enforcement Officers will have broad powers to seize assets and garnish wages through the streamlined registry system. The debt itself doesn’t disappear – you’ll still owe the money regardless of how long enforcement takes. However, the new law also provides meaningful protections. The Act will expand the list of exempt property that creditors can’t touch, protecting essential household items and low-value assets (though we’re still waiting for regulations to specify exactly what’s protected). Perhaps most importantly, if you’re employed, your employer will face fines up to $10,000 for retaliating against you over wage garnishment – a significant deterrent against workplace discrimination.

The Bottom Line

The Money Judgment Enforcement Act represents the most significant change to B.C.’s debt collection system in decades. While we’re still waiting for the government to publish the final regulations and announce the exact implementation date in 2025, both creditors and debtors should start preparing now. If you’re a creditor, review your outstanding judgments and develop a strategy for prompt registry registration – missing that 2-year window could complicate your enforcement options significantly. If you’re a debtor, understand that while enforcement may happen faster, stronger protections are coming too. As with any major legal change, the devil will be in the regulatory details, so stay tuned for further developments as we move through 2025.

This article provides general information only and should not be relied upon as legal advice as it may not apply to your specific situation. Please consider scheduling a consultation for advice specific to your situation.