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How are Costs paid?

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  • How are Costs paid?

    If one party wins costs, how are costs to be paid by the other party?

    I know FRO or whatever agency for that province enforces support orders but do they enforce cost orders?

    Is it possible the losing party could just go bankrupt instead of paying?

  • #2
    do a search here for equalization and Winnipeg press release came out - it was somebody who owed the ex a large sum of cash on an ongoing "pay her back $200 a month" court agreement - he fairly soon after filed and the story indicated that through this loophole this dude left his ex holding the bag and s___t outa luck (I think it may have been for her half of the equity of a paid off house) she lost it all. story came out maybe early summer last year?

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    • #3
      Originally posted by Gladtobesingleagain View Post
      If one party wins costs, how are costs to be paid by the other party?
      money normally should be ok..

      I know FRO or whatever agency for that province enforces support orders but do they enforce cost orders?
      FRO enforce only cost order related to support (CS or SS). Cost order should specifically stated that cost are related to support.

      Is it possible the losing party could just go bankrupt instead of paying?
      Oh yes. Then you have to go to Bankruptcy court and try to oppose discharge.

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      • #4
        To be clear:

        The losing party has no assets like a home or anything else.

        WorkingDAD:

        This person can include the costs order in bankruptcy?

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        • #5
          Not necessarily. I would be cautious and double check this. Wording in order can make a difference.

          Lawyers have many ways to collect when bankruptcy involved. If you lost, man up and pay.

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          • #6
            I doubt someone will be stupid enough to declare bankruptcy due to costs.

            Costs are a court order. You can apply for wage garnishment or seize the home or property. It's not easy but I have done it with the home. Eve if they declare bankruptcy you are still a creditor and can seize the money depends who is ahead of you (bank, municipal etc.). Most people pay costs because garnishing wages is easy, seizing the home is a bit harder but doable.

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            • #7
              I was a business partner with my spouse and he went bankrupt. I was unsuccessful in being declared a creditor. My ex has to pay me SS and it is collected through Maintenance Enforcement = FRO. Costs awarded for any court/lawyer costs after divorce are fully enforceable by Maintenance Enforcement at least here in Alberta.

              You only need to owe $1,200.00 to declare bankruptcy and yes some people do declare bankruptcy for very small amounts. Bankruptcy slows down payment of certain debts and places some collection restraints on SS arrears. Each province might be different.

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              • #8
                In my situation, after the Judge awarded the ex costs of $2,500, it was deducted from child support until paid. For several months the kids received no child support, despite the fact I had actually won the case, and I'm not going into that vent today. :-/

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                • #9
                  If two parties come up with a domestic agreement to resolve issues such as a large Section 7 arrears, can one party turn around and file that kind of domestic contract with the court and register it with FRO for enforcement?

                  eg One party owes the other party $5000 for their share of 2 years of daycare and agrees to repay it at a rate of $200 per month. Both parties sign it and it is phrased as a "temporary child support agreement". Is this fileable and eventually enforceable?

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