The Collections Unit, Financial Operations, is responsible for the administration of the postponement and discharge of caveats, agreements and orders, and the bankruptcy process, as these require detailed knowledge of financial matters.

Caveats
Prior to September 1, 2002, caveats were registered against a client’s property when home repairs were issued. No new benefits are to be registered after this date as these benefits are now issued by repayment. Existing caveats are not affected.

A caveat registered with Land Titles may be postponed when the client or the client’s lawyer requests postponement to allow for mortgage renewal or new financing. Land Titles automatically restores a postponed caveat when the new financing arrangements have been made.

If a caveat remains in effect, the entire client file must be retained and no document destruction is permitted.

Once registered with Land Titles, a caveat must not be discharged until the department’s claim has been calculated, and full payment has been:

• Received, or
• Placed in trust for the department.

Bankruptcies
When received, bankruptcy documents must be immediately forwarded to the Collections Unit who will make the necessary debt adjustments in the Recoveries System.

Note
This may stop further automatic monthly cheque deductions from occurring on an active file.

If a portion of the debt occurred after the assignment date, then automatic cheque deductions would continue and be applied against the portion of the debt that is not protected from bankruptcy.

In cases where there is a Fraud conviction the debt is exempt from bankruptcy. The debt is collectible and the Collections Unit will forward Statement of Claim to the Bankruptcy Trustee.

Orders and Registered Agreements
An Order (active or closed file) previously registered with Land Titles may be postponed when the client or the client’s lawyer requests a postponement to allow for mortgage renewal or new financing. Land Titles automatically restores a postponed registration when the new financing arrangements have been made.

An EMP 0976B Repayment Agreement or Order registered at Land Titles must be discharged when the client has paid their Community and Social Services debt in full.

The RC10601 Recovery Agreements to be Discharged report prints from the Recovery System and identifies clients who have repaid their Community and Social Services debt. The report is available to the Collections Unit for follow up.

PROCEDURE

All requests for the postponement or discharge of a caveat; notification of foreclosure; or the postponement or discharge of an order or agreement are to be submitted in writing and may be forwarded by Community and Social Services staff or the client directly to the Collections Unit at:

Alberta Community and Social Services
Revenue and Recoveries Unit
Policy, Operations and Procurement
5th Floor, Forestry Building
9920 108 St NW
T5K 2M4
Fax: (780) 422-6649

Postponement of a Caveat, Agreement or Order
When the request is received, the Collections Unit:

1. Contacts the Community and Social Services Service Centre to forward the file or the information they require.
2. Reviews the client’s file to ensure if client was granted postponement in the past (a second postponement is not granted).
3. If postponement is granted, prepares postponement documents.
4. Forwards postponement documents to the client or the client’s representative.

Discharge of a Caveat or Notification of Foreclosure
When the request is received, the Collections Unit:

1. Obtains client’s consent in writing (unless the client is deceased).
2. Contacts the Community and Social Services Service Centre to forward the file.
3. Determines the Department’s claim.
4. Forwards the appropriate documents to either the client or the client’s representative (i.e., lawyer).

The client or client’s representative takes the discharge document to Land Title.

When the discharge document is received from Land Titles, the Collections Unit:

1. Updates CCD to change the Caveat flag to N.
2. Files the discharge document on Section 1 of the client’s file.
3. Returns the file to the Community and Social Services Service Centre.

Discharge of an Agreement or Order
When the RC10601 Recovery Agreements to be Discharged report is received, Collections staff:

1. Contacts the Community and Social Services Service Centre to forward the file.
2. Prepares the Recovery Agreement Discharge documents.
3. Forwards the discharge documents either to the client or the client’s representative.

When the discharge document is received from Land Titles, Collections staff:

1. Files the discharge document on Section 1 of the client’s file.
2. Returns the file to the owning Community and Social Services Service Centre.