The Post Judgment Settlement Agreement is utilized in Canadian jurisdictions when parties wish to establish alternative arrangements for satisfying a court judgment without proceeding with formal enforcement measures. This document becomes relevant when a judgment debtor cannot immediately pay the full judgment amount or when both parties prefer to negotiate more manageable terms. The agreement typically includes detailed payment schedules, default provisions, security arrangements if applicable, and specific terms for releasing the judgment upon satisfaction of the settlement terms. It must comply with both federal and provincial legislation regarding judgment enforcement, ensuring that creditors' rights under the original judgment are preserved while providing debtors with a structured path to resolution. The document is particularly important in commercial contexts but is equally applicable to individual judgment debtors, requiring careful consideration of provincial rules regarding judgment interest, limitation periods, and enforcement mechanisms.
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1. Parties: Identifies the judgment creditor and judgment debtor, including their full legal names and addresses
2. Background: References the original judgment (including court, date, case number, and amount), current amount owing including interest, and parties' desire to settle
3. Definitions: Defines key terms used in the agreement, including 'Judgment', 'Settlement Amount', 'Payment Plan', and 'Default'
4. Settlement Amount: Specifies the agreed settlement amount and how it relates to the original judgment amount
5. Payment Terms: Details the payment schedule, method of payment, and payment instructions
6. Representations and Warranties: Each party's confirmations regarding their authority and capacity to enter into the agreement
7. Default Provisions: Defines what constitutes default and consequences, including revival of original judgment amount
8. Release: Terms of release upon full payment of settlement amount
9. Governing Law: Confirms applicable law and jurisdiction
10. Entire Agreement: Standard integration clause confirming this agreement represents complete understanding
11. Execution: Signature blocks and execution requirements
1. Security: Include when settlement is secured by assets or guarantees
2. Confidentiality: Include when parties wish to keep settlement terms private
3. Tax Implications: Include when settlement has significant tax consequences requiring acknowledgment
4. Insurance Provisions: Include when settlement involves insurance payments or requirements
5. Reporting Obligations: Include when debtor must provide financial reports or updates
6. Assignment: Include when rights under the settlement may need to be assigned
7. Third Party Rights: Include when settlement affects rights of third parties
8. Survival: Include when certain provisions should survive termination
9. Force Majeure: Include when long-term payment plans might be affected by extraordinary circumstances
1. Schedule A - Payment Plan: Detailed payment schedule including dates, amounts, and payment methods
2. Schedule B - Original Judgment: Copy of the original judgment being settled
3. Schedule C - Security Documents: Details of any security provided for the settlement payments
4. Schedule D - Financial Disclosure: Debtor's financial information supporting payment plan feasibility
5. Appendix 1 - Interest Calculations: Detailed calculations of interest accrued on original judgment
6. Appendix 2 - Release Documents: Forms of release to be filed upon completion of settlement
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Relevant Teams
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Finance
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Risk Management
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Relevant Roles
Legal Counsel
Collections Manager
Credit Manager
Financial Controller
Chief Financial Officer
Risk Manager
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Treasury Manager
Accounts Receivable Manager
Settlement Officer
Debt Recovery Specialist
Corporate Secretary
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Enforcement Officer
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