What is a receiver and when can a court appoint one to help collect a judgment in Ontario?

A court-appointed receiver is an officer designated by the court to take control of a debtor's property or business for the purpose of preserving and distributing its value to creditors. In Ontario, receivers can be appointed under the Courts of Justice Act or under security agreements (such as a General Security Agreement held by a lender).

For ordinary judgment creditors — those who hold an unsecured civil judgment — receivership is generally not the first enforcement tool available and is rarely used. It is most relevant when a secured creditor (typically a bank or commercial lender) holds a security interest over substantially all of a debtor's business assets and wants to realize on that security.

A court-appointed receiver is distinct from a "privately appointed receiver," where the security agreement itself authorizes appointment without court involvement. Courts can appoint receivers on an urgent basis if there is a risk that assets will be dissipated or the business is being mismanaged in a way that will prejudice creditors.

For individual judgment creditors owed money from a commercial dispute, the more typical enforcement tools — garnishment, writs, examination of the debtor — are simpler and less expensive than seeking a receiver. However, in complex multi-creditor situations or where a debtor runs a business and is dissipating assets, a receiver can be the most effective remedy.

Legal advice is essential before pursuing receivership — the process is complex, and the costs can outstrip the recovery if not carefully managed.