Legally encumbered payments and garnishments

Funds are considered encumbered when they are owned by one party but subject to claim by another. Legal orders allow encumbered payments to be redirected from the party owing to the party owed.

Legal Encumbrance, Office of the Comptroller General, is responsible for processing payments that have become legally encumbered by court order, or through federal or provincial legislation, and served on the province. Legal Encumbrance also approves and processes inter-ministry set-offs, which are internal to the B.C. government.

Processing legal orders

Once the legality of an encumbrance is established, Legal Encumbrance captures, processes and redirects legally encumbered payments.

Garnishing Orders

Courthouses, law firms and the general public may contact Legal Encumbrance to execute Garnishing Orders under the Court Order Enforcement Act or Crown Proceeding Act if the orders pertain to B.C. government employees or suppliers doing business with the B.C. government.

They may also contact Legal Encumbrance to execute various orders under the federal Bankruptcy and Insolvency Act if the orders pertain to B.C. government employees or suppliers doing business with the B.C. government.

Requirement to pay/demand on third party

The Canada Revenue Agency may contact Legal Encumbrance to execute a Requirement to Pay under various federal and provincial tax legislation, if they pertain to B.C. government employees or suppliers doing business with the B.C. government.

Demand Notice

The B.C. Employment Standards Branch may contact Legal Encumbrance to execute Demand Notices under the Employment Standards Act if the notices pertain to suppliers doing business with the B.C. government.

Notice of Attachment

The Family Maintenance Enforcement Program may contact Legal Encumbrance to execute Notices of Attachment if they pertain to B.C. government employees or suppliers doing business with the B.C. government. A Notice of Attachment is issued when the payor fails to fulfill his or her family maintenance payment obligations (spousal or child support) under the Family Maintenance Enforcement Act.

Set-offs

When the Province of B.C. owes money to a supplier, individual or legal entity, and that same entity owes money to the Province, a collection tool known as an inter-ministry set-off allows the amount owed to government to be deducted from the payment owing to the debtor. Legal Encumbrance approves and processes inter-ministry set-offs.