Can a creditor seize and sell my car to enforce a judgment in Ontario?

A judgment creditor in Ontario can direct the sheriff to seize and sell a motor vehicle owned by the judgment debtor. However, Ontario's Execution Act provides an exemption for one motor vehicle up to a prescribed value. If your vehicle is worth less than the exempt amount, the sheriff cannot take it. If your vehicle is worth more than the exempt amount, the creditor can seize it, the vehicle is sold, the exempt amount is returned to you, and the surplus goes toward the judgment.

If your vehicle is subject to a lien — for example, you financed it and the lender has a registered security interest under the Personal Property Security Act — the lender has priority. A sheriff seizing the vehicle would need to satisfy the lender's security interest out of sale proceeds first, and only if there is surplus after that would the judgment creditor receive anything.

Before directing the sheriff to seize a vehicle, a creditor will typically assess whether there is meaningful equity — value above both the exempt amount and any lien — to make the exercise worthwhile. Sheriff sale costs (towing, storage, advertising, commission) reduce net recovery, and a sheriff's sale of a used car rarely achieves retail value.

Practically speaking, vehicle seizure is most effective when the car is owned free and clear and its value significantly exceeds the Execution Act exemption. A lawyer can help assess whether vehicle enforcement is likely to produce a real recovery in your specific circumstances.